Throughout the years the Group has experienced a steady growth with revenue increasing at a CAGR of 21.8%, while maintaining a stable EBITDA margin of 70%. This growth was sustained through considerable high leverage with gearing averaging at 16.4x during this period.

Inevitably, in line with the current unprecedented scenario credit metrics have deteriorated, whereby HP expects its interest coverage ratio to fall to 1.5x in FY20 (FY19: 1.8x) and the gearing to increase to 15.9x (FY19: 12.7x). Notwithstanding the deterioration in credit metrics, the Group is still forecasting to generate positive cash flows from its operations during FY20. In view of this, while also taking into account that the full extent of the COVID-19 pandemic in not yet fully known, we are issuing a Neutral credit opinion.

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