Iceland - steady as she goes

All,

We have just updated our model on Iceland here

As HY investors are getting to grips with another cost inflationary pressure (Packaging Recycling Notes) many are prone to missing the story. Iceland again reported in line with expectation and reiterated its guidance for FY ending March 2020. Our model is not as bullish as management's guidance but even at our levels we see the continued FCF generation ability of Iceland.

One topic of conversation on the conference call was the potential loss of credit insurance for suppliers - we believe this is a red herring and have spoken to several credit insurance providers who are seeking to increase exposure in the UK.

If you have any questions please do not hesitate to call.

Tomas is the analyst.

Wolfgang