Almaviva - end of the track

All,

Please find our unchanged model here.

Eventually, AlmaViva will pull into the refinancing station having stated on their Q2 conference call their intention to raise a new bond and RCF next month. This will likely signal the end of our coverage of the name with leverage below 2.0x and cash generation remaining robust.

Trading Update:

-AlmaViva reported numbers in line with expectation and a continuation of marginal improvement across all segments of their business. A minor concern is an outflow in Working Capital associated with recent contract wins, but management are confident this will reverse in H2.

Railways contract:

-No progress made on the tendering process with all current tenders cancelled. The management remain of the view that further tenders will take place prior to year end. The railways contract still remains as a concentration risk for AlmaViva, but the Company has made significant progress in diversifying its contract base, especially in the public administration segment.

Terminating Coverage:

-The bonds are likely to be refinanced with their call date at par on October 15th. We don’t see any potential opportunities going forward and although we will take a courtesy glance at the new issue, we are ceasing our coverage of the name.

Happy to discuss.

Tomás

E: tmannion@sarria.co.uk
T: +44 20 3744 7009

M:+44 7786 705 806
www.sarria.co.uk