SFPI Group

We have trimmed our 2023 forecasts somewhat to allow for continuing restructuring efforts at the MAC business unit that are due to last into 2024. Incremental gains look a tad more difficult in 2023 after the good cost control in 2022. The Capital Goods units (NEU JFK and MMB) are having another strong year in 2023 while the demand for closures at MAC may be slowing.

While the value of the main legs of SFPI is essentially flat on cautious industry multiples, the drop in the net cash position (following useful acquisitions) is taking its toll.

Allowing for the restructuring of MAC impacts FCF generation during the near-term years (costs + extra capex), thereby lowering the group's FCF and the base for the out-year projections.