If we were talking about statutory leverage maybe, however the report clearly states the covenant is "operating" leverage i.e. underlying EDITDA. The HY18 was 45M, assuming a similar second half you have around 90M or around 2.9x. There is also a large accrual from international licensing fees expected to inflate 2H18. I also couldn't find anywhere HY18 mentioned a covenant breach, if a breach had occurred it would be a clearly relevant disclosure.
[Senior debt/capital management • Net debt as at 31 December 2017 - $259.7m • Compliance with all covenants as at 31 December 2017 • Senior debt covenant reset agreed (including leverage ratio [debt/EBITDA] increase to 3.0x) • Dividends suspended, supporting balance sheet] RFG HY18
If we were talking about statutory leverage maybe, however the...
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