1H26 in line, resilient growth. FY26 guide unchanged.

Research evidence excerpt

1H26 in line, resilient growth. FY26 guide unchanged.

UpdateMtherefore highly confident in 2H volumes (new contracts typically take three to four

months from signing to invoicing). While smaller customers remain more reluctant

to commit to long-term contracts in the current macro environment, the group's

record signings reflect sustained investment in sales and marketing over the past

few years. Management could have delivered higher margins in recent years by

investing less, but prioritised commercial investment to protect and grow organic

revenue.

Free cash flow, working capital and capex. The increase in DSO was limited to a

few days, and management does not see it as a structural issue. Timing around

month-end collections can create this level of movement, although receivables

remain a key focus, given the more difficult customer environment. Higher 1H capex

reflected phasing, rather than a structural increase; several major plant projects

were completed earlier than expected, bringing expenditure forward. FY26 capex/

sales is still expected to ~18%, consistent with prior expectations.

Wildfires. Two plants in France located near the fires, one of which has closed

temporarily. Have transferred the volumes to other nearby plants, so no disruption

to service. Some small Hospitality revenue losses as customers closed (~€1m of

revenues).

Cost savings. Management is targeting around €10m of group savings, mainly

through temporary project postponements. Fuel, chemical and other cost inflation

could create a €20-25m FY26 cost headwind, depending on the duration of the

conflict. This should be partly offset by index-linked surcharges and 2H savings. For

2027, stronger wage, energy, fuel and textile indices should support more