The 6.8% stock increase reflects investor approval of margin expansion and robust underlying operating profit growth, particularly driven by significant improvements in Continental Europe and deleveraging of minority interests. The company’s sustained like-for-like sales growth and progress on cash flow metrics also supported sentiment.
- Underlying operating profit grew 18% to £50 million, with a 30 basis point expansion in operating margin at constant currency.
- Continental Europe reduced operating losses by 32% to £9 million, with margins improving 70 basis points, driven by execution of the ‘Focus 26’ turnaround plan.
- EPS turned positive at 1.1p versus a prior-year loss, helped by higher income from associates and lower minority interest charges.
- Group like-for-like sales growth was steady at 5% in H1, sustained in both Q1 and Q2, though Asia Pac/EEME faced regional softness late in the period.
- Free cash flow before dividend and buyback declined slightly due to planned one-offs, but management reiterated its target to exceed £100 million for the full year.
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