Maxeda - comment

Maxeda management are clutching their purse ahead of the A&E showing a frugal performance in Q2. Revenues (only the big boxes are shrinking now) were just a touch soft, but at better margins to yield €1m more EBITDA than modelled. The astonishing feat comes in the cashflow, where aside from guided CapEx, the company paid no taxes, no interest and no other operating items, posting only a €1m inflow from WC - the tail-end of Blue Yonder. As a result, NCF was €25m vs. €13m projected. We don’t think that kind of discipline is sustainable, but in the short term, it should help get a deal over the line.