Covenant Gearing ConcernsToday's headlines offer little respite on deleverage concerns, with 1.5-2.0x covenant gearing now targeted 'over time' versus 'by FY27E' previously.
Disposal ValuationInvestor attention has focused on the low disposal value ($608m EV vs JefE $650-1,570m range) and consequential limited initial scope of deleverage, with the share price -45% since the announcement.
Geographical ChallengesUK & Germany remains challenging with an incremental £85m Germany rail write-down.