Good morning and welcome to B&M European Value Retail's FY 2026 Trading Update Call. To ask a question during the session, you need to press star 11 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 11 again. I will now hand over to management to introduce the call. Please go ahead. Good morning, everyone, and thanks very much for joining this call to discuss our Q3 FY 2026 trading statement, which we released earlier this morning. My name is Tjeerd Jegen, CEO, and I'm in the room here with Helen Cowing, our interim CFO, and Andrew Orchard, our head of investor relations. And on the back of this trading update and the guidance change that we communicated today, we wanted to hold this call to give you some context and also offer the opportunity for questions. So before we go into questions, I would like to start with some prepared remarks, and I would like to start with some background on the date of the announcement. So we would normally announce actual Q3 numbers a bit earlier. This time was a bit later because we wanted to take sufficient time to both prepare our trading results properly and diligently, but also spend sufficient time to undertake a thorough evaluation of the outlook for our business. I would like to cover four elements today. First of all, I would like to give some color to our Q3 results. I would like to take you through our thinking of guidance for FY 2026, progress made, which I think is the most important part of today with the B&M Basics, and then updates on the review of the freight issue and the review that was done by EY, which report has been finalized, and we're getting on with the implementations of their recommendations. Starting with the Q3 results, I think we indicated that in our release in November, but we had a slow start in the beginning of the quarter, negative low single digit like-for-like numbers. And I think that was linked to quite high levels of uncertainty with customers. December was a turning point, and we saw a particularly good sell-through of seasonal. Not only seasonal sold well, but overall like-for-likes amounted for the month of December to 3% for B&M UK. And interesting also, I think positive for us was the performance between general merchandise and FMCG was more or less equal. And the positive like-for-like sales momentum has continued into this month of January. Elsewhere in the group, France delivered positive like-for-like growth, be it a bit lower than before. In the competitive markets, they had to comp strong like-for-likes the year prior. But with new store openings, they still delivered, in my view, a solid year-on-year growth of 8.5%. Heron's performance was below expectations, and also the underlying profitability was not where it needed to be. Let's move to guidance for FY 2026. If you would combine the actual results for Q3 year to date, combined with the outlook for Q4, then we have made a decision to adjust and tighten our guidance range for FY 2026 adjusted EBITDA. We've adjusted and tightened it downwards from the previously announced 470-520 to the new range of 440-475. So that's basically our new guidance range for the remainder of this financial year. There are three key drivers for the downgrade, and I would like to give also some color to why we believe we needed to do this. First of all, we have continued the investment in our FMCG pricing. I think we were very clear that as of August, we've made changes to the way we implement our pricing policies and strategies, and we've made already in August adjustments to a number of key KVIs, so key value items, and since then, we have continued to invest in price, and clearly, we want to make sure that we are there for our customers, that our customers will always find prices in line with our price policy, i.e., being significantly cheaper than the big grocers, and we continue to do so also, of course, in the Golden Quarter. Second one is part of basically back to basics, and it's an investment in strategic clearance and cleaning and adjusting our stocks. I think you all know that we spoke about our Range Rationalization program. We really would like to focus our ranges, but to do so, clearly, we need to part ways with quite a bit of range. So we are preparing our stores for the rollout of this Range Rationalization. And on the back of this, we're increasing our clearance efforts significantly in the H2 of this financial year, and especially in Q4. We got a very strong focus now at the moment, if you go into our stores, on clearing seasonal and discontinued lines. Obviously, January is a really good month for this. And in addition to this, on the back of the availability trials we're currently running, we're also finding opportunities to adjust and clean our stock to make sure that we achieve the correct base in the right lines to drive the availability improvements we want to bring about. So that's the second driver of the downgrade. The third one is the underperformance at Heron Foods. Just to frame your mind, so the business of Heron Foods was built on a clearance model combined with a convenience offer. At the moment, this is a challenged business model, and in this financial year, it has resulted in, relatively for that business, a significant EBITDA underperformance versus our expectations in the October outlook. We're conducting a review of the customer proposition, and we'll continue to assess this business going forward. I think it's important to point out that two of the three drivers I've outlined are linked to Back to B&M Basics, and they are investment decisions we've taken based on the insights and the long-term health of the company. And we could have chosen also not to make those investments now, but I firmly believe that this is the right approach as we prepare the foundations for return to sustainable like-for-like growth at B&M UK, and return to sustainable like-for-like growth is our number one priority. I also would like to emphasize that the lower profit guidance for this year doesn't change our view that with sustainable like-for-like growth returning to B&M UK, we continue to believe B&M UK can return in the medium term to a low double-digit EBITDA margin business once we have re-established sustainable like-for-like growth. But we've always said restoring like-for-like outcome would likely take between 12 to 18 months, and there's no change to that view. And also, I think it's important to note margin is an outcome, not a financial input in how we manage the business. So let's move on. I would like to give you an update on Back to B&M Basics because that ultimately is the key to unlocking the recovery of U.K. like-for-like growth. We're now moving from trial phase to rollout phase in both the range, or we call this SKU rationalization, and availability work streams we outlined back in October. On availability, we've scaled up now to over 150 stores in the month of December, and about 150 items we're having a very different process across those stores where we see good sales growth on the items where we've given a greater focus and a different way of managing the availability, and we would like now to roll this out across the nation later this month and early next month, and then we'll cover 250 of our best-selling lines. We believe that will really help those lines and ultimately, of course, also the broader categories and will lead, in our view, to support increasing sales. That's the availability trial. We scaled up even in this Golden Quarter to now 150 stores, and we're ready to roll out the focus on 250 best-selling lines to all of our stores in the next weeks. The next one, which is also very important and part of Back to B&M Basics, is Range Rationalization. You might recall there were three FMCG category pilots we started in the Q3. We've got really good insights in the performance of those pilots. We are now adding four categories to this trial later this month, and that means in February we have about seven categories with a reduced range live in our estate. The objective is to reduce range by about 25%, but ultimately deliver a sales uplift and a simplification of the business. So once the results of the pilots are in, we will then start and push the button of the rollouts to all categories, which means more focused ranges, and that will start in the Q1 of the new financial year. Then promotions, also an important part of Back to B&M Basics. In November, we've taken a new approach. We communicated that our specialty front of store manager special area, we're taking a more flexible approach, trading the moments. At the back end of the quarter, we decided to dedicate this fully to Christmas ranges, and we've really seen that this has helped significantly the sell-through of these categories, but also, which I think is quite important, to really establish B&M as a destination store for the Christmas season. And I think this trading of the front of store harder than we did in the past, in my view, has really helped drive the decent like-for-likes we saw in December. But then apart from trading, EY has completed their review, the review we announced in October of the freight issue that we encountered. And to recall, EY was commissioned by the board to examine the issue from an accounting and an IT perspective. And we're now implementing the report's recommendations on specific IT and financial operational processes raised in this report. The full-year impact of the issue remains unchanged and is in line with our announcement in October. So rounding out this update, I would like to summarize that from a trading standpoint, I think we delivered our Golden Quarter with a soft start but a solid finish. And early trading in Q4 shows positive like-for-like sales at B&M UK. We've identified opportunities to deepen investments in range reduction and availability on the Back to B&M Basics. And in combination with underperformance at Heron, we've adjusted our guidance range for FY 2026 to 440-475 from the previous range of 470-520. We're continuing to make good progress with Back to B&M Basics. And very excitingly, in Q4, we'll see the rollout of the new availability working practices for our best sellers across the nation. And we're putting in place the foundations for the rollout of the FMCG range rationalizations ready to kick off in the new financial year. And finally, EY has delivered its review, and we're implementing their recommendations. But before I open to questions, I would like to emphasize that a major business reset, and I think that's how you can call Back to B&M Basics, like the one we're bringing about, inevitably bring with them choices, many of which provide opportunities for securing the outcomes you're aiming to achieve. And B&M Basics is no different. And we're approaching every one of those choices with the mindset of owners of a business we all feel very passionate about and which we believe has a bright future. I firmly believe making investments in these opportunities now is the right thing to do and will help us achieve our goal of returning the like-for-like growth back to the UK within the time frame we've outlined. With this, I would like to open the floor to questions. Reminder to ask a question. Please press star 11 on your telephone and wait for your name to be announced. To withdraw your question, please press star 11 again. Once again, please press star 11 to ask a question. To withdraw your question, please press star 11 again. Please stand by while we compile the Q&A roster. This will take a few moments. Thank you. We are now going to proceed with our first question. The first question comes from the line of Warwick Okines from BNP Paribas. Please ask your question. Thanks. Morning, Tjeerd. Morning, Helen. Two questions, please. Firstly, could you just comment on Q4? You're planning to accelerate clearance in the quarter. What do you think this will add to like-for-like growth? And maybe as part of that, was Q3 sort of boosted by extraordinary clearance? And then my second question is whether you could just comment on, in a bit more precision, the sort of uplift in sales that you're seeing from the availability trials that you've been conducting so far. Thank you. Yeah. Very good, so basically, if you focus on Q4, we actually have a significant focus and strategic focus on clearance in January on the back of seasonal ranges that we would like to clear, and January, of course, is the obvious month to sell your seasonal autumn-winter ranges, but also to start selling all of the discontinued lines that we have accumulated in our store warehouses. Especially when they're seasonal, that's the right moment to sell. At the back end of Q4, so somewhere in March, we will then start having a very strong focus on starting to sell in a clearance way all of the ranges we already have decided no longer to need in our, let's say, Range Rationalization program, which will start rolling out, let's say, in the Q1 of the financial year. Basically, it's more or less a strong focus throughout the quarter, the beginning of the quarter, very much linked to clearing seasonal and discontinued lines that we took from our store warehouses. The back end of Q4 is really starting to clear all of the ranges that we no longer need as a result of the review of the Range Rationalization. To put it in perspective, in Q3, obviously, you've got the normal, let's say, ongoing clearance that we have. But I can tell you, I think the contribution of clearance to the like-for-likes in Q3 were probably very small. It was really the sales was driven by many, many different categories and actually equally in FMCG and Brown Box and very much the seasonal categories, of which the majority of them we were selling full price. So that's basically Q4, Q3 clearance. In terms of uplift of the availability trial, so I think it's important to note that we decided to, even though normally you would not want to change things from an operational perspective throughout December, we did decide to scale up from the 11 trial stores to 153 stores in December because we really saw good encouraging results coming out of the first 11 stores. We've seen also now in those 153 stores that the 250 best-selling lines that we have given significant focus. They've received more space on shelf. We have a very diligent and stringent focus on stock record accuracy. We leave the gaps when the supplier hasn't delivered the product to our DC, which is new for the company. We're looking at shelf capacity enhancement. We've actually seen that in those stores, at 153 stores, those items actually have seen double-digit sales increases. Obviously, some of it is, let's say, sales that probably would be driven in other brands if we wouldn't have done so. So it's not completely, let's say, accretive sales number, but it's very encouraging to see that we know the customers are, let's say, buying significantly more of it. Ultimately, what it actually does, it establishes B&M as a more reliable place, a more reliable store where you can buy the items you buy most, and you know they're always there. In the past, we were not always, let's say, best positioned in terms of availability. The good thing is, on the back of the 153 stores where we now have rolled out the availability trial, we're very confident to successfully roll out at the end of January, early February, to all of our 791 stores in the UK. This is just a start, so it's 250 lines. There's thousands of lines in FMCG. So clearly, the next step will be to enlarge the scope of products we have this different focus on. I would say so far, good progress in this area. That's very helpful. Thanks, Tjeerd. Thank you. Thank you. We are now going to proceed with our next question. And the next questions come from the line of Jonathan Pritchard from Peel Hunt. Please ask your question. Morning, all. Morning. Two or three if I may. Two or three. Just the continued better performance in FMCG. Obviously, clearance was very strong in January, but has FMCG continued to be a bit better in January? And has the pricing investment actually ushered in a change in pricing perception where FMCG is concerned? And then a couple of other quickies. Just on Heron, just give us another level of granularity on the profitability issues. Is it purely operational gearing? The like-for-like was worse than you expected, or is there something more structural there? Continuing to use the word sort of structural, would it be fair just to say that on the margin investments in B&M, the price investment is slightly more structural, but it's more one-off when it comes to the clearance side? I think I might be stating the obvious a little bit there, but just to confirm that for me. Yeah. Very good. So three very good questions. So I'll start with the first one. So clearance, I would say at this stage, has a smaller impact on FMCG. We do clear some FMCG in January, but the larger impact of clearance in FMCG will come in March. If you would look at that we've signaled that we had an elevated FMCG price investment, and it's mainly to do with the fact that we had, we follow, of course, pricing in the market. We've seen in December there was quite a significant enhancement of competitive activity on seasonal fruit lines. We just participated in that fight, and we wanted to give our customers best prices while the rest of the market was offering also great value. We saw elevated, let's say, pricing impact in December on the back of, let's say, a seasonal fight on, let's say, Quality Street tins and the like. We've continued to invest. Price perception ultimately builds up over time. Anecdotally, I hear that especially stores where we face our most important domestic competitor, which is a concept which is quite similar to ours, that customers are, let's say, acknowledging the fact that we have better prices, and we see some of the FMCG sales in those stores trending upwards. I would say it's a slow burn. So I wouldn't say it is all linked to the fact that we decided to be more competitive in December. On Heron, I think you know that Heron actually is originally built on a clearance model. So a significant part of its sales historically has been the ability to acquire stocklots of food suppliers, perishable and non-perishable, with short shelf life, where the producer had issues with forecasting their demand properly, and they had overstocks. They couldn't sell it with their regular customers. And then we had the opportunity within 24 hours to acquire significant stocklots at great discounts for us, but also at great discounts ultimately for our customer. And the interesting element of the clearance model was it wasn't just a great deal for the consumer. Also, it was accretive to our, let's say, gross profit margins on the back of this clearance model. Many of our suppliers in the U.K., but globally, have invested in better forecasting tools. So that clearance model, the supply of clearance products, unfortunately, is reducing. So we don't have access to the same levels and quantities of clearance that we saw historically. So we've become more or less now a convenience discount store. Low prices, convenience means a higher cost to run a shop without the clearance element helping our profitability. That's been actually the main and most important driver reducing profitability in Heron. And obviously, it's something we're very unhappy with. We are doing a proper review of the customer proposition. And of course, we continually assess the asset. Then final question, price investment being structural, your words, and clearance being more one-off. I would, though, I would look at pricing also a bit more in a dynamic way. Obviously, we've taken the decision in August to reduce pricing or, let's say, be more competitive in FMCG with the consequence that we've reduced prices because we needed to, because we were, in my view, not best placed competitively. That has led indeed to an investment in gross profit margins in FMCG. And I don't expect competitiveness in FMCG in the UK will weaken or will soften. So this might be a prolonged investment, yes, but it's the right thing to do for the business. But I also would like to share that I think I've already, let's say, shared a view previously, but I would like then to repeat today. I believe that 18 months ago, 12 months ago, the decision was taken at B&M to reduce pricing and reduce margin rates in our non-food ranges, our Brown Box ranges. I think that was not a strategic decision that was taken in the right direction. I believe that ultimately, because we develop all our ranges ourselves, we've got unique price points. We've got a great sourcing platform in Asia. In my view, there's an opportunity for us to improve our margin rates in Brown Box and non-foods, which means we could actually absorb over time, in my view, the investment we're now making in FMCG. Unfortunately, as you know, most of our Brown Box is pre-priced, and most of the Brown Box is seasonal. So it will take several buying seasons to fix this. But that's the way I would ask you to look at pricing more strategically and long-term at B&M. So don't assume that our pricing now is permanently depressed on the back of our investments in FMCG. It will take probably 12 months, 18 months in Brown Box to get to a more solid, healthy margin rate given the nature of buys, but I think dynamically, we are still aiming to improve our rates in Brown Box. Clearance, yes, 100%, especially the way we are now clearing. If you would walk into our stores, you would see we're using manager special space for clearance. We've got to reduce the clearance area. There's a very strong focus. Every single store has scanned every single item in the warehouse to make sure that everything was discontinued is out for sale for customers. We are applying significant, let's say, price reductions to really clean our warehouses. That is, I would say, you could argue in the end, a one-off because we're not intending to do a strategic program like we're doing now every year. This is really laying the foundation for clean ranges, easier to execute in our supply chain, easier to execute in our stores, and easier to shop for customers. Thank you. We are now going to proceed with our next question. Our next questions come from the line of Richard Chamberlain from RBC. Please ask your question. Thanks a lot. Morning, team. A couple from me. Morning. A couple from me, please. In terms of the SKU rationalization, Tjeerd, can you just talk about how you're sort of intending to manage that and sort of edit the range but not reduce perceived choice for customers? I guess there's a sort of balancing act there. Then the second one, I guess looking ahead to this spring, post the heavier period for clearance, what sort of changes will customers be noticing now in stores across the estate in terms of more compelling price messaging, better availability, better price communication, all of those sort of executional or operational improvements? So I just wonder if you can sort of talk to any obvious changes that B&M customers will start to notice as from this spring. Thanks a lot. Yeah. No. No. Good, good. On the first one, so there's three categories in about 23 stores where we have, just before we did the H1 announcement, went live with about a 35% reduced SKU count in pasta, rice in crisps and snacks and in wine. We've learned a lot there. And indeed, the goal is significantly reduced SKU count, but ultimately more sales because I strongly believe that we've become very blurred with our offer. And indeed, the way to do so is take out redundant choice, not unique choice. So customer offer actually is still providing all of the needs, but in a much simpler way to shop for customers. And ultimately being a true discounter because complexity comes with cost, and cost is something we don't want to have. We're adding four new categories to this mix at the end of the month. So in end of January, early February, there will be seven categories. We've learned a lot. I can tell you in those first three categories. And the aim is that starting in April, we will then roll out, let's say, about 200 subcategories across the estate where we aim to be done somewhere in mid-summer. And then we have some seasonal categories in autumn, which will then update. So by the end of the current year, basically, we're done with this part of the program. And yeah, I think I'm pleased we did the trial. We learned a lot, and we're making good progress also with the next four. And we've used, just to be clear, we've used transaction data in combination with payment card identifiers, so either debit or credit, so we could actually track customer behavior. And we would know if customers would be very loyal to a certain item or customers would basically have very low loyalty. And those indicators we've used to reduce range or to keep lines in our range. In terms of what customers are going to see in our stores, now, in the end, this is not a sprint, but it will take time to build. What we are doing, though, so the availability trial, which will go into full rollout this spring, will become visible in our stores. So the 250 best-selling items, you will notice the customer, they will have significantly more space, and they have sufficient shelf capacity. They will also be marked with different shelf communication, different color coding of price tags, but also more shelf talkers because those 250 items are not just our best-selling items. They're also the items where we are sharpest on price. So that will help us building that very strong price message on those items. We've also started a, let's say, on our socials and a bit on paid advertising, our everyday value campaign. So really showcasing every single day you can buy great value at B&M. Of course, obviously, the most important one is, as of this month, we're launching all of our new spring-summer ranges that are now flowing into our stores. I can tell you that will be, in my view, quite a strong perception this year because I think historically we had to cut in those lines not on the back of a very strong clearance program. This time, stores are clean. Warehouses are clean. I expect really the spring-summer ranges to shine. I would say those are the changes customers will see spring-summer. Over, let's say, the summer period, then we'll see the full implementation of the range rationalization. More focused ranges. Yeah. Awesome. Very helpful. Thank you. Yep. Thank you. We are now going to proceed with our next question. The questions come from the line of Karine Elias from Barclays. Please ask your question. Hi. Thank you for the presentation, and thanks for taking my questions. I had two, please, actually. You've mentioned the end of the review. Just wondering if there are any particular implications that we should think about in terms of CapEx that you can share or anything in terms of financial impact that we should be aware of. And then secondly, obviously, it's great to see the like-for-likes turning positive and obviously the availability improves. But just thinking about clearly what sort of level of leverage are you comfortable with, and how should we think about the path of earnings and leverage in particular? Thank you. Yeah. Great. So on the EY review, clearly, we've commissioned them to focus on the accounting controls and the IT change. They came back with a significant number of recommendations, a good number of recommendations, rather. There were four areas where basically the recommendations were focused on. Area one was formalizing and documenting policies and procedures to a larger extent than we've done historically at B&M, standardizing our IT change. We had a really solid IT change process for projects, but less, let's say, a standardized approach for business-as-usual changes, a stronger cross-functional business partnering. Unfortunately, I think it's a curse of many companies, but also B&M is quite siloed and something we would like to break down, but you can't do this overnight. Having a stronger cross-functional business partnering would have helped here, and we are doing that now significantly better. Then, improving segregation of duties. Those are the four, let's say, main improvement themes. As you can hear, it doesn't require a significant CapEx investment. It doesn't require adding significant amounts of people to our business. It is more formalizing and changing the way we work and being more intelligent in terms of how we operate, so that's on the EY. And I would say a significant amount of recommendations have already been implemented, and we are concluding all of the other recommendations in the remainder of the months ahead, so on like-for-like turning positive, I would like to just put it in perspective. I think it's important to note how pleasing it is that December and also going into January, we saw positive like-for-likes. In my view, and I'll be very clear, the real hard yards and the real customer impact from Back to B&M Basics isn't yet visible in our stores, and we've always said sustainable like-for-like growth requires 12 to 18 months. I just make sure that everybody realizes that. In terms of leverage, I think we updated our capital allocation policy in November, and we feel really still comfortable with that. And we basically said that we would like to stay within 1 to 1.5 times leverage. We were 1.6 on the half. Clearly, you can't always plan leverage to the finest detail, but we aim to remain within this range, and there's no change in this policy. That's very helpful. Thank you. Thank you. We are now going to proceed with our next question. And the questions come from the line of Ben Hunt from Panmure Liberum. Please ask your question. Oh, hi there. I just wanted to be clear, provide us with an update with the actual sort of price competitiveness. Sorry. Around the time of strategy, I think you said that you were going to reduce lines on an average of about 2% on 35% of KVIs. Where is that now trending today following what looks like further price investment in FMCG? That's question number one. Yeah. Ben, good morning. Yeah. So I would say pricing is cumulative and continuous. Clearly, we've made a step in August, and we've continued, and every single week, we track about 400 lines, and we compare ourselves line by line, so higher, equal, lower with the four grocers, and we see consistently that our, let's say, target price index of 15% cheaper after rollback, after Nectar, after Clubcard were achieving to the largest extent, and where we're not achieving that is mainly because there was a new set of rollbacks, Nectar discounts, or Clubcard discounts where we're adjusting. What we did see, though, in December, we've added, which is the right thing to do, we added the core seasonal ranges to this price basket. Price basket is dynamic. It's not static, so you always look at if you've got the right range covered in your basket, and we've added in this basket all of the seasonal sweets, let's say, items. I mentioned Quality Street tins, but there's all the Roses as well, but there's a significant, let's say, amount of seasonal products, and we've seen that those items were used by the four main grocers and to an extent also by the German discounters as a price fight where we decided to also reflect more compelling pricing in our ranges. That focus on price and that fight has, of course, been concluded with the start of the new year because those ranges are no longer relevant for customers. So, we've seen in January a bit more easing of that price investment to levels where we were before December. So, Ben, I'm not disclosing today the cumulative investment. It's the right thing to do for the business. We feel good about the investments we've made, and we'll continue to do so. And I think in the end, strategically, we have an opportunity uniquely so with our non-food ranges to make sure that we compensate investments in FMCG over time with better rates in brown box. And that's the aim and the focus of our buying teams. Okay. Great. And then secondly, I'm a little bit confused on the performance of the general merchandise gross margin. I think the previous management has indicated that by the H2 of this year, financial year, the ASP cuts that they had made would have annualized, and therefore the gross margin would have started to trend upward, and yet that doesn't seem to be following your narrative of the big box or the brown box, rather, rate cuts, so if you could just clarify what's going on there. Yeah. Yeah, so I think it's important to note that clearly, margin rate is always, let's say, a combination of your underlying, let's say, buys that you made in the Far East. So let's say full price margin rate. Second element is then your clearance, let's say, reductions, which reduces that rate. And the third element is then promotions that are basically, let's say, conscious decision to reduce prices to clear more stock. And then there's a fourth element, which is then basically shrinkage or stock losses. That combination will lead to a gross profit number. We've seen indeed that underlying the brown box margin rate is slowly, slowly improving. That said, the real improvements are still to come. And obviously, we are trying to look at all opportunities to improve gross profit rate. But you can imagine that when we are taking a strategic decision to have a focus on reducing discontinued lines and seasonal lines, that the element of clearance in the margin rate of brown box is diluting its rate and not accretive. But it's underlying the margin brown box rate is indeed step by step improving. Great. That's brilliant. Just one final one. There's not much commentary on store openings or prospects of anything you can add on that. Yeah. There's no change. That's why we didn't feel the need to disclose or to talk about it. So we're still on track to open between 40 and 45 gross new stores this year. So that's still very much in the pipeline. Perfect. Great. Thanks. You too. Thank you. We are now going to proceed with our next question. The next questions come from the line of Adam Cochrane from Deutsche Bank. Please ask your question. Good morning, guys. A couple of questions, if I can. Previously, when you outlined the EBITDA guidance, you said that the main difference between the upper and the lower end was going to be like-for-like sales performance. I can understand that Heron has changed, and I can maybe understand that you're doing a bit more price investment. In terms of the impact of clearance on the margin, you knew that you were going to reduce the SKU count. When did you think that that clearance impact was going to hit the profitability, or is the clearance just costing you more than you thought it was going to do when you gave the guidance previously? And then on that tone, you've talked about the clearance accelerating in March. Will all of it be done in this fiscal year, or as we look into April of the next fiscal year, will there still be some of the clearance ongoing then, or do you expect the majority of it to be done in Q4 in March? And then sort of finally, my question is, you're doing so many things at the same time with regards to availability, SKU count, pricing. How are you able to really work out which of these initiatives is delivering the sales uplift that you're seeing? And so where to spend more time and effort on which of the areas are having the biggest benefit? Thanks. Yeah. No. Good questions. So I think from a guidance perspective, clearly, like-for-like sales are still a very sizable impact and will have a sizable impact on the outcome and the outturn of the results for the financial year. So there's no change in that understanding. And you could say with a minor 0.6% like-for-like for the quarter, we probably came out slightly below the midpoint of what we initially said. But it's fair to say that, and it's progressive insight, I think the quality of our stock, and especially the amount of items that need to be discontinued, was significantly larger than we anticipated. That's why we took the decision to make those clearance investments. They were clearly not splendid in the outlook. Do not underestimate, even though it's a smaller business, Heron Foods, especially in its final quarter, had quite a sizable impact on the business. In the end, these are the right things to do for this company. There's only one month of January for 12 months. This is the month to clear autumn-winter stock. This is the month to clear discontinued lines that are seasonal. You could, of course, decide to keep it in your warehouse, wait another year, and then potentially bring up margin rate. That's not what I would like to do. I see this business, and I would like to act as business in its best interest. Its best interest is to act as an owner and to make sure we do the right things long term. That's why we decided to make those investments in conjunction with the Heron underperformance. You're right. We're looking at many elements of the customer proposition on your second question, but I wouldn't say we're doing many things at the same time. It's four key workstreams, of which two we are trialing properly in a, let's say, isolated group of stores, and two we've implemented because we felt they were the right things to do. Pricing promotions, I would say, have been now implemented, and we're continuing to improve and strengthen. On availability and on range rationalization, we are not, let's say, executing things without proper planning. We can actually measure the impact quite a bit of both availability and the range rationalization trials. So just to be very clear, we are aiming to reduce range between 25%-35% and still see a low single-digit sales uplift coming out of those range rationalization trials. And with the availability trials, we've seen on those 250 lines, a double-digit sales uplift in those lines. So we will be able to actually track the contribution of those projects to our overall sales development over time. That's the way we work. And I think this whole test-and-learn approach, it's quite new to B&M, but it's a way, in my view, to run this business in a better way. We've got 791 stores, soon 800 stores. So we've got 791 opportunities to learn and improve and get the estate in better shape. Yeah. So. I was more thinking about cutting prices on certain lines, and then you are changing the SKU. I get your point about you're doing the two trials in different stores, but I presume the pricing element is done across all of your store estate. Yeah. Yeah. Yeah. It is. We're not cutting prices for the sake of cutting prices. We're cutting prices to make sure we keep a 15% distance to the four grocers. We're making sure that we are never more expensive than the operator in this market who is most similar to us. That is an ongoing commitment to our customers. If the market heats up and people become more competitive and invest more in price, we will invest more in price. If the market's less competitive, happy days for our margin rate. We will always do the right thing for pricing for our customers because we're a discount operator. That's the premise, the essential premise to our customers, is it's always great value at B&M. Just on the first question about the clearance that you're doing in March, do you expect that all to be completed in March, or will any carry on? Yeah. That's a good question. I would say if you look at the quarter, the start of this quarter is very much influenced by clearance of seasonal and discontinued lines out of our warehouses that we have built up over time. March is the start of clearance of the range rationalization. There will be an element of clearance of that range rationalization also going into the new financial year because the implementation of the rollout will take several months going into summer. Great. Thank you. Yep. Thank you. Thank you. We are now going to proceed with our next question. And the next questions come from the line of David Hughes from Shore Capital. Please ask your question. Hi there. Thanks for taking my question. I just wanted to dig into kind of stock levels and working capital. So first of all, with this additional clearance that you're doing and kind of the ongoing program of SKU count, are you expecting to see any benefit from the working capital and stock levels of that and any improvement in inventory holes? And then similarly on stock levels, I just wanted some clarity on a comment in the trading statement. You say that early results from the trials are helping improve the quality of your stock records. What do you mean by that, and what were the kind of challenges that you had with the stock records beforehand? Thanks very much. Yeah. And that's a good question, David. Good morning. So first of all, with less SKUs, you could say there will be less stock needed in the business, but you could also say we also want to make sure we have stock available for customers. So I think on balance, I'm not so sure there'll be, let's say, a significant reduction in working capital. I think that said, I think it's something we need to look into as a business in terms of how we can improve and how we can work in a more efficient way. But the focus is now on range, on price, on promo, and availability. In terms of the stock records, yeah, it's mainly linked to a different way of working. So in the past, we had the tendency, especially in the food areas, whenever there was a gap, to face over the gap, remove the price ticket, and ultimately, that led to the significantly below market standard availability. Any retailer would investigate when a shelf is empty, why. And the first point of call is to get your stock record in your system, count the stock of that item in your store. And if there's a discrepancy, you adjust the stock record. That discipline wasn't always there because actually, people really were not focused that much on interrogating gaps because gaps were faced over. We are now having a very disciplined process of every single store on those 250 lines, checking every gap. And as a consequence, it leads to more frequent adjustments of stock records because the accuracy of stock records is the driver of availability. That's the only thing we wanted to share, which, I could tell you, in my career in retail, that's retail basics, but unfortunately, it's something we haven't done disciplined in B&M. Yeah. Great. Thank you very much. Thank you. Thank you. This concludes the question and answer session. I will now hand back to management for closing remarks. Yeah. Thanks very much for your time, and thanks very much for your attention. I think this concludes we concluded the golden quarter, I would say, with solid like-for-likes, but there's much more to go after, and that's the journey that we're on. Thank you very much. Thank you. This concludes today's conference call. Thank you all for participating. You may now disconnect your lines. Thank you, and have a good rest of your day.