Sectors > Top Reports > Mangrove Memo 110321

Mangrove Memo 110321

Mangrove. FY 21 – Raw Material Cost Inflation, Potential For Strong Order Intake, Covenant Renegotiation, Mixed End Market Structural Trends, Supportive Sponsor, c. 12% Yield….
PUBLISHED: 11 March 2021
PAGES: 106
SUBMARKET: Mangrove, Top Reports, Top Reports,


Why Read?

  • 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”

What’s New?

  • 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

Questions Answered

  • 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?

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