Ablon (LON:ABL) - Sitting out tough markets

Nov 01st 2012 - Edison Investment Research today published a report on Ablon (ABL.L, LSE:ABL, LON:ABL) entitled "Sitting Out Tough Markets". In summary, the report says:

Tough market conditions were reflected in a 19.6% sharp fall in mid-year asset values, which, accentuated by gearing, generated a 37% fall in interim NAV/share to 80p. That keeps the focus on two issues. The first is lender willingness to work with the group to provide the time to realise value from a portfolio that, according to the mid-year appraisal, is still in aggregate worth c 1.8 times outstanding debt. The second is Ablon’s ability to cover key overheads from internally-generated cash flows over the next few years. So far lenders have not sought to enforce security on loans past maturity or in technical covenant breach, but preferred to leave the group in place to manage the assets. In reality,...