PBT of £35.8m (INVe = £35m) and net funds of £53.7m, in line with Jan’22 guidance. Trading in January and February 2022 was “in line with plan, with the strong margin performance in 2021 maintained into 2022”. The gross margin rise (+220bps to a record 33%, partly driven by inflation) is encouraging, and management state that they have able to “largely mitigate the industry wide issues, including supply issues, with inventory position maintained and levels of availability preserved”. “Product supply issues during the year led to significant price increases. However, these were passed directly into the marketplace and absorbed owing to the relative infrequency of consumer purchases and proliferation of product at varying price points.” Chris Payne confirmed as permanent CEO following an independent search. Surplus capital return has been quantified at £30m (evenly split between a special dividend and a buyback programme). This special is in addition to the FY dividend of 16.4p. Our view: It’s early days, but there is enough in these results, in our view, to demonstrate that the revenue drivers outlined in last year’s CMD are beginning to come through visibly (Trade Counter, Digital, Multiple Retailers etc.). The capital return rewards investors while those drivers accelerate, and – importantly in the current environment – we think deliverability risk is low. Changes to forecasts: none except to reflect the capital return in FY22E in net cash: £34m (prev. £42.4m), adjust for the buy back in the share count, and to introduce FY23E forecasts. Valuation: The shares trade at a 25%+ discount to their long-term historical NTM PE, and remain at a significant, 40%+, discount to the rating of peer Victoria (VCP.L N/R). We restate our Buy recommendation and target price.