Takko - comment

On what looks like slightly higher discounts, Takko’s gross profit is a mere €4m off expectations. Staff costs are as expected, as is rent. So EBITDA actually exceeded our model by €5m (again, in times like these those are rounding errors). So the business is behaving as expected, but its balance sheet is not. Trade payables are €30m lower than modelled - the LC facility is maturing in May and from Takko’s perspective urgently needs to be extended. We’ve recently written how we expect to receive more from Takko than mere quarterly news as the large holders seem to have cancelled repo and as we understand there to be push-back from holders in the senior facilities. Slightly higher inventories on the back of lower sales and other miscellaneous items make up for the remaining difference to result in Cash of just over €100m. The goodwill write-off is mere cosmetics and in line with other retailers in the sector.