Ann: Half Year Results Presentation, page-3

Net Debt has reduced by about 14.3m, and the ICR (using uEBITDA to i - from cashflow to avoid fee inclusion) is about 4.3x after being 4.5x in the last half. This is marginally worse. Usually a covenant for this might be about 3.5 using this metric - for example EHL. Leverage using net debt to uEBITDA has moved from about 2.95x (if annualised for a half year) to 2.75x. Typically a covenant might be at 3.5 times, but that will be the gross debt limit. This metric has moved in the right direction. Really very noisy if you look at each half, and any lender would be using a rolling 12 months, or full financial years.

Seems like they are being hit by the perfect storm - still achieved fcf of 13.8m while meeting costs to cut overheads and staff, and managed to delever partly by asset sales without diminishing their book value much at all - so asset values appear solid. Negative pledge covenants - don't know precisely what they are, but wouldn't seem they are out of whack.

GLTA