Matalan results on target

All,

Matalan results were right on target this morning - suggesting that our FX hedge roll is working nicely.

Sales volumes were slightly higher, but at lower margins, in line with what we’ve seen at other retailers during the winter season, resulting in a £4m lower gross margin compared to model.

Opex savings of £6.6m (relative to model) however, delivered an EBITDA beat by E2m for Q4, making up for most of the E2.8m shortfall in Q3 (note the late timing of Black Friday in 2018 increasing volumes and decreasing margins for Q4 (having had the opposite effect on Q3).

Cash was £2m higher as well as WC was equally offset from Q3.

We hope to hear more from management on their hedging position going forward.

Wolfgang