Not sure precisely how they calc their leverage covenant, but by my brief sums leverage was already 4.4 at the full year using their underlying EBITDA, while SDA was saying it was 3.5x, and the covenant is 4x. (there are some adjustments required to get the right figure). They are saying they are still within their covenant based on a pro forma, at 3.5-3.6x. But are they expecting to still be within their covenants based on their forecasts as well?
Is anybody who has done the sums willing to share their leverage estimate for the half year accounts?
Their finance is due roughly in 2023 and 2025. There are still some years to go to sort out the mess if their covenants are in order.
SDA Price at posting:
$1.72 Sentiment: None Disclosure: Not Held
