Matalan - Back To Yield - Model Update

Freshly extended, the bonds offer a slightly cleaner bet than they did before, even if the nature of the bet remains the same. Yet the bond price is not reflecting the fundamental earnings and the CapEx plan to which management has committed. So even if it didn’t change our positioning in the name, but rather confirmed our previously held view, it’s been a worthwhile exercise to ground some 12 different P&L drivers in the rich history we have of the retailer and extrapolate them with a fair amount of confidence.