TFG – Liquidity OK, but higher Impairment risk

We forecast the monthly cashflows for each of its three divisions and think that the company should be able to trade through the difficult period without raising capital. However, the elevated gearing and the risk of a protracted pandemic may have compelled management to secure additional shareholder funding. We believe that there is some risk of impairment of TFG London, as the division is exposed to department stores.