Adler Pelzer - comment

So Adler Pelzer's EBITDA has been outperforming our forecast recently, even if at the cash level we haven’t seen the difference, but the call may just have provided the answer as to why. There appears to be a €20m reclassification of R&D expenses into CapEx, as new launches are being postponed. The performance is therefore all the same, but it looks better, allowing for those 10% EBITDA margins. We remain short against the odds as the company is looking to refinance. But if we were directly involved, we’d be asking to see that shareholder cash back before rolling, and we suspect it’s no longer there.