Boparan - Puddings sold, Brexit postponed

All,

It's more a confirmation than any news.

The sale of Matthew Walker Christmas Puddings concluded over the weekend.

As stated before we view this sale for £67m = 1.5x Sales very positively. It also relieves the company from the burden of ramping up further inventory ahead of Christmas.

The next sale we are anticipating are Fox’s Biscuits - at approx. half the valuation it received in 2017. If that concludes, we estimate that the company needs to raise its EBITDA margin on the chicken business by only some 2% (from very low levels) to refinance the remainder of the bonds. In this Brexit environment this is far from certain, but entirely possible.

We were going to contemplate an investment in the bonds following Brexit.

As this seems to have been effectively postponed just hours ago, we may feel inclined to contemplate such investment sooner.

Wolfgang