Boparan - comment

The timing of the sale of Hollands/Portumna to the Boparan Private Office is curious but understandable. The going concern paragraph in the Q2 22.23 accounts expected the disposal would complete as planned. If an alternative buyer hadn't been found, losing the previous PE buyer would have spooked us.

We had estimated the gross value of the two companies at £20m - £25m, but on the recent call, management suggested proceeds would be small. Our model low point for EBITDA in the next 12 months is £87m (as high-cost recovery quarters roll off). Our model has liquidity as adequate for the December trading period. We had already expected EBITDA to be lower year on year and had expected working capital to be carefully managed.