Lowell Consortium

All,

Please find our updated analysis here.

Please get in touch. We are looking for more funds to join our clients in a meaningful group to re-approach to the company with a plan. 

Having independently done the detailed work, we think there is scope for a solution and an opportunity in re-engaging with the company/sponsors. 

Conclusions from our analysis:

- The company is about halfway through generating the sustainable cost savings it needs to achieve 1.5x Norm. FCF interest coverage if the sponsors inject E400m and creditors agree to a 5% average coupon. 

- Most of the remaining £25m of required annual savings might lie in extraordinary expenses, which have been high since the acquisition and subsequent integration of the Nordics business. Covid-19 may be adding to further extraordinary items, but unless they begin to perpetuate, the company can find £20m there.

- Data on those improvements is limited and now subject to distortion under the pandemic. 

Wolfgang