Whilst the drag in the UK was in line with expectations, relating mainly from the Beds re-ranging programme which was accelerated and completed in Q2, the European business dropped back to a small loss, and accounted for the £2m miss versus our H1 forecast. The cause was a change of discounting approach, which can and will be reversed. Despite encouraging share gains in the UK from the strategic transformation, and an expectation that Bed performance will strengthen in H2, domestic conditions are tough and the shortfall left by Europe is unlikely to be offset. FY guidance is therefore towards the lower end of the range, implying downgrades of c5-6%.
