Iceland

All,

Two items:

1) DIA - have set March 20th for their AGM. Agenda items include a netting of the loss against reserves and a debate over KPMG as auditor. More importantly however, L1 would want to hold a majority at that meeting - i.e. in one month’s time, as another agenda item is the capital cut in preparation to the rights issue. So we are expecting a move from L1 shortly now.

2) Iceland - will report its results for 40 weeks ending 4th January 2019 (effectively Q3 results).

We expect reported sales for the 40 weeks - YTD - of £2,479m with EBITDA of £92m, effectively £44m for the quarter.  

Points to be aware of:

• Hard to estimate where the working capital will be - last year’s numbers were to 29th December so before month end - these numbers will be post month end (4th January).  

• Number of stores opened (net and gross) - How many of the Poundworld stores have they managed to open.

• Unlikely the Company will have bought any bonds in the market - they have in the past, but likely to see better opportunities 

• Will be looking for an update of exceptional costs on the Deeside distribution centre.  

In summary, we think our numbers are cautious, and will be disappointed if Iceland do not beat these numbers.  

Wolfgang