beppa, page-76

Hi Melua,

latest figures on PD show volumes may be down a further 10% until Tesco comes online. However, their new logistics container shipping is picking up. Naturally Tesco helps next financial year. Latest aticle by searching Google News.

Euroports will naturally suffer on earnings during the downturn. I don't think the earnings issue is what really concerns me (I believe they forcasted an 8% drop to EBITDA). I am more concerned about the put and call issue with minority holders. The capital injection from issuing shares to the purchasers was to sort these issues.

I suppose my major concern, especially with transport assets, was the amount of previously free cash flow that was used to fund organic growth. If you use the figures in the investment pack, on a like for like, less debt is available to fund these works and more cash (capital) needed.

When you have reducing cash flows via the GFC, and less debt financing available, less cash will flow to the headstock. I would really like to know how much of the organic works are future contracted and what is the potential liability.

With less cash to the headstock, you really get squeezed on servicing corporate debt. We therefore come back to the single issue of sale of assets at book and above to deleaverage the company and re-rate it to better access funds. Even with all the sideshows, the main game of getting good asset sales hasn't changed in all these months.

Cheers