Pasubio - comment

Pausubio are holding its Q3 conference call at 11 UK time, but initial reaction to numbers are broadly in line with our projections. Revenue is €10m lower than we expected, but better Gross Profit margins means GP and EBITDA are only €2m lower than our projections. Headlines will refer to EBITDA down, but with JLR cyber issues coupled with Company guidance, the weakness was expected.  We covered our short at 80% in late September, locking in the 7pt gain. With bonds now at 84.5%, 13.5% YTM, the risks remain to the downside, and we may revisit after the call.