First take on Iceland numbers

All,

Slightly disappointed with first take on the numbers - Sales and EBITDA in line with guidance, disappointed that EBITDA was not marginally higher. Also disappointed that the Company did not buy back any FRNs, keeping £89m cash on balance sheet. Leverage has creeped up to 5.2x on the back of higher finance leases accounted under net debt.

However CAPEX is lower than in out model which is pointing to lower refit and new store roll out costs.

Guidance for Q2 is broadly the same - Overall group sales continue to grow ahead of the market, despite trading over exceptionally hot weather and the World Cup in corresponding period last year.

Points for follow up:

Higher Leases accounted for under net debt

Lower CAPEX, in line with guidance but the new store roll out is it done with leases versus CAPEX?

Call is at 1pm.