Intrum - comment

The company this morning surprised us positively with good cost discipline. We had more than half expected that the recent central cost had been window-dressed for the transaction (and perhaps it has), but management pulled it off for a second quarter, lifting EBITDA 150m higher than we had modelled. Purchasing GMMs have dropped back somewhat from Q1 to 2.33x. One quarter won’t weigh heavily in the statistics, but that figure needs to stay high to allow Intrum to carry its debt, even after the transaction.