FY 21 EBIT slightly ahead of our estimates. Net debt much better than expected, we expect through working capital discipline and crucially management guides to no rights issue. £1.7bn of impairments and charges – mostly non-cash, unlike Serco’s review where there was a significant cash drag from the OCP. The review of contract profitability has reduced the long term margin take and profits by c. £30m p.a. We reduce FY 22 EBIT by 7% from £340m to £315m, lower than feared. Buy, TP 350p
