S&P moves Auxey Bidco view to negative

S&P said it revised its outlook for Auxey Bidco Ltd. (Alexander Mann Solutions) to negative from stable and affirmed the B+ ratings on the company and its £373 million-equivalent term loan. The loan’s recovery rating is 3.

“AMS' prospects remain uncertain after it underperformed our expectations for 2023. Following a robust performance in 2022, AMS' operating performance deteriorated in 2023 due to weaker volumes from the existing contracts and lower-than-expected new wins, resulting in S&P Global Ratings-adjusted EBITDA margins of 11% compared with our expectations of 14% for 2023. AMS also incurred higher-than-expected exceptional costs of about £8 million,” S&P said in a press release.

However, “We expect a strong recovery in volumes from 2024 as hiring returns to more normalized levels, thereby supporting new contract wins and the ramp up of existing contracts. Albeit lower than previous expectations, we expect EBITDA margins of 12.8% in 2024 and 13% in 2025 compared with 11% in 2023,” the agency added.

S&P said it projects S&P Global Ratings-adjusted leverage of 4.7x at year-end 2024 and 4x at year-end 2025.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.