Mangrove Memo 110321
- Understand key challenges facing each of Mangrove, its Kelvion and ENEXIO businesses and their sub-segments – commodity raw material cost inflation net of customer pass-through (impacts on EBITDA, WC and liquidity); structural declines in some sub-segments vs structural growth in others; RCF minimum EBITDA and net leverage covenant renegotiation
- Understand potential for sharp increase in order intake in H2 21E from customer capex / projects postponed in FY 20 and from post-COVID “re-opening”
- Financial projections (including liquidity), DCF valuation and sensitivities including to order intake growth in each Kelvion business unit (RT, PHE, MCS and TES) and to net (of pass-through) raw material cost inflation
- What shocks to RT, PHE, MCS and TES order intake and to net raw material cost inflation would it take to impair Mangrove’s SSNs?
- What is the outlook for each of Kelvion’s and ENEXIO’s business units post COVID?
- What ability do Kelvion and ENEXIO have to pass on raw material cost inflation?
- How supportive has Triton been of Mangrove and its pre-restructuring predecessor, Galapagos, across equity investment and shorter term shareholder funding when needed?
- View, Variant Perception & Recommendations
- Business Overview & Analysis
- Historic Financial Analysis
- Financial Projections, Valuation & Sensitivities