Standard Profil - comment

Standard Profil released their Q2 numbers which are ahead of their guidance given earlier this year. On the back of the numbers and slightly better underlying markets, management has also upgraded their guidance for FY23 to €78-83m.  The accounts confirm the additional €10m of equity injected by the sponsor in April, which coupled with the fully drawn €30m revolver, has boosted cash reserves to €42m.   

Overall the numbers are positive, but we are conscious that the ratio of CAPEX to sales continues to decline.  This has two possible explanations with the Company stating the business benefits from prior years’ investments.  However, we will be keen to push the Company on whether further CAPEX is likely in the coming quarters or if Standard Profil has been losing recent tenders.