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Nelly Q4: Rights issue, additional savings to take Nelly to black numbers - SEB

Nelly Group has announced a SEK 50m new issue with preferential rights for existing shareholders (the top-3 owners, representing a combined holding of 51%, guarantees the rights issue, pro rata). The company aims at taking out another SEK 20m of costs, in addition to its ongoing SEK 40-50m savings programme. Q4 sales and LBIT are better-than-expected by us (no cons. available) and OCF of SEK 56m are well above our estimates. Our SEK 25 mid-point value is under review.

Nelly Group has announced a SEK 50m new issue with preferential rights for existing shareholders (the top-3 owners, representing a combined holding of 51%, guarantees the rights issue, pro rata). The company aims at taking out another SEK 20m of costs, in addition to its ongoing SEK 40-50m savings programme. Q4 sales and LBIT are better-than-expected by us (no cons. available) and OCF of SEK 56m are well above our estimates. Our SEK 25 mid-point value is under review.
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