NoHo Partners: Strong February, March expectations above earlier indications - Nordea

NoHo Partners’ February sales were over EUR 15m (earlier guided to be EUR 13-15m) while we had anticipated EUR 13m. Operating cash flow turned positive in February, while we had anticipated EUR 1m negative operating cash flow. The company expects sales to be over EUR 23m and operating cash flow to exceed EUR 3m in March (earlier over EUR 21m sales and EUR 2-3m operating cash flow). We have anticipated EUR 22m sales in March and EUR 3.5m positive operating cash flow. Hence, mathematically, there is some 10% upside to our Q1 top line estimate. According to the company, customer demand has recovered even faster than the company has anticipated. Entertainment venues and nightclubs have seen high demand during first weekend of March and the company has strong booking situation in its restaurants. We view February sales figures and March indications positive for NoHo and note that our H1 estimates look conservative b ased on the recovery pace in the market. The company will report March development during week 15. We have a fair value range of EUR 9.9-12.2 per NoHo share.