Reach - Marked progress on issue resolution

Reach's FY23 figures were broadly in line with market expectations. The key messaging, though, is that the two big uncertainties overhanging the stock are being clarified in timescale and in quantum. Firstly, agreement has been reached with the pension trustees, substantially reducing the ongoing funding requirement from FY28. Secondly, December's High Court ruling on time limitation for the historical legal issues gives far better clarity on the amounts to be paid out and shortens the execution timescale. This gives management much improved context in which to plan the necessary investment from cash flows to continue to boost the data-driven revenue line. We would expect the substantial valuation discount to start to narrow.

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