Maxeda - comment

The tougher weather comps are here, and as indicated, LfL sales have gone into reverse, except a little more than we thought. Even though Belgian consumer confidence is back to neutral, Revenue fell short by €8m and therefore EBITDA by €6m vs. model, but cash flows were more than compensated with a lighter inventory position by €12m vs. model and zero one-off charges. As a result, balance sheet cash is €5m ahead of the forecast. Altogether, we find this a soft result at the wrong time for the shareholders. Advised by Perella Weinberg and Kirkland & Ellis, deleveraging discussions are deemed ‘constructive’, whilst as of October, the RCF was €37m drawn.