Matalan - comment

Matalan reported a strong Q324 today - £5m better EBITDA than we had projected. More importantly, we had expected the company to kitchen sink Q4 with costs so as to present a cleaner FY25, but the guided £50m EBITDA for the year suggests management are playing it straight. The Budget for next year is some £5m EBITDA below our estimate, but we think there is an upside to the budget and feel no need to change it. Either way, a return to these levels of EBITDA numbers should drive the company’s valuation strongly. So we are staying put across the cap Structure.