Nervousness ahead of today’s update and fear of Brexit has driven a 30% slump in the share price over the last 2 months and the stock is at its historical 10-year low (35% discount) on a sector relative P/E basis. Given a reassuring press release this morning, namely reporting flat trading (which is better than expected) and unchanged guidance for the full year, this ought to result in a relief bounce. The market is well versed in the various issues (unseasonal conditions, investment in margin, drag from Traditional segment) but we flag potential upcoming positive catalysts (F4F savings, FCA authorisation application, remedial actions in Traditional) and the valuation (8x P/E)/yield (6.6%).