Profitability ConcernsThe business is not as profitable or as free cash flow generative as previously thought, and forecasts have been reduced due to higher capex and opex estimates.
Tax ImpactThe impact of windfall tax on the UK assets is now abundantly clear- the UK now has the lowest post-tax return on investment across the entire business.
Valuation ReductionThe risked NPV10 valuation for Harbour has been cut by approximately 28%, leading to a lower target price.