Intrum - drop in the ocean

All,

We fear this is not the beginning of a new-found sense of creditor friendly frugality, but merely a little pruning around the edges.

Intrum are cutting costs, following their significant expansion into Southern Europe, by merging their Greek, Spanish and Italian business units into one Strategic Market unit on the basis that all three markets share significant common characteristics.

We have been highlighting the need for cost cuts as the single most reliable enabler of positive economics in the industry. While the three new markets have each been relatively minor compared with the core business, this is by far the most positive fundamental signal we have received in some time. However, management on the last quarterly call had the opportunity to announce a however more wide ranging review of costs - and thus raise EBITDA, but deliberately only committed to raising “Cash EBITDA”.

Wolfgang