Elior - comment
Elior has posted strong full-year results, and Free Cash flow generation was above our expectations at >€200m. However, this was boosted by a €107m Working Capital inflow (our expectations were +€10m), with the difference mainly due to a new securitisation facility, and we will see the exact amount when the full accounts are published). Organic growth of 4.9% PF and synergies drove the 2.8% (+170bp) EBITA margin. We had been concerned that Elior would struggle to pass through its inflationary costs, and as we already had a position in Atalian, we didn’t invest in this name also. However, now that Elior has successfully passed on those costs (with a delay) and is seeing its margins recover, we are archiving this name.