RE: Dbx23 Sep 2022 15:05
They raise cash last time round with bonds.
Around £1bn of them,, denominated in USD $$$.
So every time the pound falls, the interest on the bonds goes up.
It was £290m per annum H1, it will be £350m per anum now, and most likely about to get worse, possibly even close to £400m soon.
The pound is tanking, SONIA swap rates close to 5% because the market knows this mini budget is utterly mental, pure desperation.
Half the AML cash raised is to pay off debt.
So say £300m takes debt from 1.4bn to 1.1bn, that's still a hell of an interest bill.
£300m stays as cash, which they are burning through in 6 months or less.
AML have burned through £700m in cash since Stroll took over 2.5 years ago.
Do the math, the company is unsustainable.
So in 12 months, the busuiness will be failing again.