DAVY VIEW

The expected financial performance of this year, defined by COVID-19 and major investment and juxtaposed with next year onwards, provides a textbook example of how operational gearing works. The key is the relationship between a mostly fixed cost base and volumes. On-site investment and COVID-19 will result in sub-par volumes this year. However, once through this period, higher output and subsequent operational gearing are the core of our positive assessment for the group.