RE: Quick question14 Dec 2023 16:41
The results were on-par and not excellent. What these results have done is alleviate many fears. No bonuses will be paid because targets have been missed. I believe debt was/is a concern because they specifically talk about this in the trading update where they haven't done so before. "Leverage at 30 November 2023, being EBITDA to net debt, was 1.7x (31 May 2023: 2.0x)". One of the metrics for the covenant kicks in at 2.5 so I think debt is/was a genuine reason for caution. Another phrase in the statement points to rental requiring too much capital as it stands with "management's focus on cash versus rental growth". This strikes me as the management team having a tight controls and reporting which is a positive in my view. I think this is a turning point. Interesting what happens in the next 2 working days.