Being fully vertically integrated has allowed FBR to withstand the tough trading environment but it is now facing the same pressures that its competitors experienced over the past two years. While the company voluntary arranged (CVA) process has lowered its rental cost base, we show that its staff cost remains high. We expect FBR’s Africa space rationalisation to continue, while its presence in the Middle East grows. This should further improve the profitability of its Africa and Middle East (AME) division, in our view.
