Strong H1 PBT growth (+28%) and success in Sept (key month in H2) puts Vertu on track to beat FY expectations. We expect upgrades of c4%. Further potential depends on how the new GAP rules bed in. Commentary supports our suspicion that the VAG situation could be an opportunity, not a threat - so the general outlook remains positive. W/C performance was a stand-out in H1, aiding c/flow and investment in growth. Shares should advance on c10.7x cal16.