UK&I Daily Focus: Thursday, 2nd July 2026

Research evidence excerpt

UK&I Daily Focus: Thursday, 2nd July 2026

2 July 2026

UK&I Daily Focus

lowered expectations for FY27 despite a number of ongoing variables. With Sugar

EBIT forecasts rebased to below a £60m loss for FY27 this should allow investors

to focus on the other divisions where the picture is more supportive. There are some

positives to be drawn from the Primark print in our view and, if the actions taken on

womenswear in the UK (sales c.5ppt better than total UK sales) can be replicated

across other countries and categories, we see a potential inflection point. We need

to see a bit more evidence of a recovery in Europe beyond an easy comparative. We

downgrade our EPS estimates for FY26 by 1% and FY27 by 3% largely on the Sugar

EBIT downgrade, partially offset by FX translation which sees an EPS decline of

13% yoy in FY26 but 7% growth in FY27 and the stock trading at a 12x Cal26E P/E.

We retain our Hold rating and 1850p price target.

WORKSPACE GROUP (WKP.L) - Sticking to the plan

Ashnaa Vyas: Tgt 370p. Last Close 345p, Hold. Workspace has published a

presentation in response to Saba's letter to shareholders on 17 June. While there

is little materially new in our view, the presentation reiterates management's

recently announced strategy, argues Saba's proposed Board overhaul lacks the

appropriate operational and governance experience to oversee the business and

ultimately urges shareholders to vote against the Saba resolutions at the 23 July

AGM. With occupancy likely through the worst, the presentation points to a more

stable starting position while highlighting a number of elements of the strategy

already underway, including progressing towards all-inclusive pricing, upgrades to

buildings and customer amenities, and investment in technology and AI.

SECTOR UPDATE