Boparan comment

Topline and Gross Profit/EBITDA were broadly in line with our estimates; operating cash flow was higher due to a better-than-expected payables performance in the working capital line. We expect a harder H2 as the higher living wage and national insurance costs kick in. Boparan is seeking price increases from customers, but we still expect to see some margin attrition. ASDA’s price cuts will mean that there will be more pushback on non-feed price pass-throughs. The call is today at 1230 UK time.