Ekopak Restatement FY24, balance sheet to be strengthened

After trading was suspended for two days, Ekopak issued a statement announcing the restatement of the FY24 figures published early March. The restatement is linked to reversed revenue recognition linked to Waterkracht. During the FY24 analyst call, management stated no material one-off equipment/engineering sales linked to either Waterkracht or Circeaulair were in the numbers. Hence the material €8m downwards revenue revision comes as a complete surprise. The company further acknowledges that a liquidity shortfall might occur and that the balance sheet will be strengthened opening the door for a capital increase. Regarding Waterkracht, the company remains committed to the completion of the project and added its last communication on this project has been confirmed by external legal advice. Finally, Ekopak announced its management would be strengthened, communication on which will follow later. We will have to adjust our numbers and recommendation downwards considerably and put our recommendation Under Review (from Buy).