To put a bit of meat on the bone:
Summary
· Group adjusted EBIT +7% YoY
· Further progress in UK&I, with strong momentum in Services: Credit adoption +330bps to 20.3%, Care & Repair adoption +340bps, iD Mobile subscriptions > 1.5m, +24% YoY
· Nordics profitability improved despite difficult consumer environment, with gross margins back up to the levels of two years ago
· First-half free cash outflow limited to £(10)m (H1 2022/23: £(86)m)
· After period closed, agreed sale of Greece for an enterprise value of £175m and net proceeds of £156m, representing an attractive return for shareholders. Greece will be included in continuing operations until transaction completes
Financial performance
· Group LFL revenue (4)%; Currency neutral revenue (4)%; Reported revenue (7)%
· Group adjusted loss before tax £(16)m, in line with last year
· UK&I LFL revenue (3)%, adjusted EBIT £15m, (40)% YoY - profit decline as anticipated as improved gross margin and costs savings of £53m were more than offset by inflationary pressures and non-repeat of £11m of mobile revaluations
· Nordics LFL revenue (6)%, adjusted EBIT £12m, +300% YoY - significant gross margin recovery of +190bps and cost actions offset continued market driven sales decline
· Greece LFL revenue (4)%, adjusted EBIT £4m, +300% YoY - delivering another period of robust profits
· Group statutory loss before tax of £(46)m, from £(548)m in prior year
· Period end net debt of £(129)m - first-half cash outflow of £(32)m, compared to £(149)m outflow in prior year
· Period end IAS 19 pension deficit £(190)m, from £(249)m at year end
Outlook
· Trading since the period end has been consistent with the Board's expectations
· No change to previous guidance
· Greece disposal expected to receive final approvals and to complete in first quarter of 2024
· Group expected to finish year in net cash position if disposal completes before year end
No interim dividend (after no final last year) and the proceeds of the sale of the Greek business will be used to pay down debt and pay into the pension fund.
Unfortunately I hold, fortunately in a taxable account so I will hold on to use the losses if needed to set against CGT sometime in the future.