Mainstream Group (MAI) | Guidance update
Overall: MAI has reissued FY20 earnings guidance at the same pre-crisis EBITDA level of ~$9m and is in final negotiations to extend its debt facility. We see both of these developments as positive.
Guidance: MAI has reissued earnings guidance for FY20. The company expects revenue of $54m and EBITDA of $9.0m. This compares to guidance of $55m revenue and $9.0m EBITDA at the 1H20 result which was subsequently withdrawn in April. It also compares to our published forecast of $53m revenue and $8.1m EBITDA.
Cost controls: The company confirmed ongoing discretionary cost controls, applications for stimulus support in available jurisdictions, and a narrower focus for capex on core areas.
Capital: The company has stated it is in final negotiations with its bank to extend its $6m debt facility beyond the current maturity of Jan-21.