Rekeep - comment

Investors’ concerns around Rekeep’s working-capital movement should ease following the Q1 call and, with results slightly ahead of our projections, bond prices should be firmer post results as downward pressure dissipates. Reported numbers were solid: revenue marginally ahead, EBITDA €2.5m above expectations, and cash flow slightly better on working capital (WC negative €40m vs €48m expected). 

There remains lingering disappointment, however, due to the absence of progress on asset sales. Meaningful deleveraging will only come via disposals, and despite improved commercial activity, the bonds are unlikely to recover to par without an asset sale.