Selecta - comment

Q3 revenues and earnings came in almost on top of our estimates. More interesting is what is going on on the balance sheet, in particular with working capital. We had begun to forecast a mild inflow as the machine park is reducing, but those effects are still being outweighed by payables relating to its turnaround and even some remaining COVID-related payables. Unfortunately, the accounts are somewhat opaque in the detail and management did not give any concrete estimate on when this outflow might come down. We maintain that the company should benefit greatly from the Paris Olympics next year.