Rekeep - comment

Rekeep reported a weak set of numbers yesterday. Although the Company had guided to weaker revenue (on the back of falling energy costs, reducing the pass-through) the numbers are weaker than we had expected. Tendering activity remains subdued due to the impact of new legislation, with the majority of contracts in the market renewals, instead of new markets. 

We are going through our model again, especially around working capital, which should see a net reduction in Q4 as the advance payments to energy suppliers work their way through the balance sheet.