HSE24 - comment

Post-restructuring agreement, the H126 call was calm and collected yesterday. Management emphasised a record Mother's Day haul, but the retailer continues to slightly lag our projections; still, revenue and EBITDA are up 6% YoY, making the high fixed costs work for the business, despite high freight costs. The company introduced a new "Mega Week" format in April that is proving highly successful, driving volume up 34.5% and helping to attract something we hardly expected: new customers. But perhaps the most transformative news is that E-Commerce is now over 50% of the group, overtaking TV for the first time across 6 months. Given the new capital structure, it is time we take another look at the company.