Today’s AGM update makes reassuring reading. The renewed focus on organic growth, operational improvements and better cost/KPI management is proving effective. This is graphically illustrated by a strong 8% LFL sales growth print covering the first 4 months of the year, meaning the positive momentum seen in H2-19 has continued into FY20. Significantly, gross margins, employment costs and vacancy rates have remained stable since the Sept finals. LFL sales comps do become stiffer in H2 but with YTD trading “slightly ahead of management’s expectations”, we push through a 4% EPS upgrade for FY20 and also the outer years. This implies 14% EPS growth for the current year and a 3 year CAGR of 8%. The shares are up a strong 55% YTD and trade on a FY20 P/E of 19.4x and 13.1x EV/EBITDA. The strength of today’s update should be received favourably and we see fair value >1100p.