CLIVE BLACK | SHORE CAPITAL
In light of the work that must be undertaken and the need to see its output, we are downgrading our recommendation from Buy to Hold... Whilst today’s update is a major disappointment, the downgrades reflect not just poor recent trading but a build up of matters, particularly in the core chain.
JONATHAN JACKSON | KILLIK
Management has finally chosen to grasp the nettle and embark on a step-change in the business and re-set expectations for profitability. That said, we see little reason for the shares to re-rate upwards in the near term given the vacuum created by the group’s unwillingness to fully outline its plans until April.
PHILIP DORGAN | PANMURE GORDON
The UK performance is poor, especially when it is considered that the comparable period was also down, reflecting the impact of last year’s snow. We know that improvement will take time to come through, but there doesn’t appear to be any sign of any forward momentum.