MadamswerFully agree with your assessment that the Dunlop deal...

Madamswer
Fully agree with your assessment that the Dunlop deal will be a significant contributor to the business, but what are you seeing that points towards a cyclical inflection point?

Input costs (oil) still highly elevated so I'm assuming that their suppliers are struggling with costs (so unlikely to be able to get reductions on that front), and FX rate in 1H24 may end up worse than the average in FY23 which all points towards a challenge to maintain those margins.

Appreciate that they don't have the elevated transport costs and supply chain issues, but that was already the case in 2H23 so it still seems to me a challenging environment where they have to continue to moderate/reduce their CODB in order to stand still (i.e. to offset gross margin pressures).

Dunlop won't improve margins, just leverage scale but that does not realistically start until early CY2024 so FY1H24 still looks to be a challenging period (unless FX rates improve dramatically).