Boparan - comment
Boparan’s Q1 FY22/23 results are out this morning; no mention of the bakery division sale, but otherwise broadly in line. UK Poultry performance will see some volatility into Q2. Bird flu is also creating operating challenges. The recovery in poultry performance is continuing, and once we have more detail on the level of Q2 Challenges (mentioned above), we will review our positioning in Boparan. We will ask for more detail on the call this afternoon at 1330 (UK Time).
EBITDA was £18m vs our projection of £13m (LTM £113m vs £107m in our model), agricultural headwinds being more than compensated for by the inflation recovery. Working Capital outflows were £17m v £11m projected, due to higher inventory levels vs our expectations. Cash on hand was £25m vs £18 modelled due to a £10m drawing on the RCF.