Earnings Per Share PressureAnalyst cautions that investment-related costs associated with the new base could lower EPS and increase earnings volatility as the operation scales.
Operating Profit DragAnalyst projects the expansion will reduce operating profit with an estimated EBIT drag of about 2%, putting downward pressure on margins.
Start-up Cash LossesAnalyst warns that initial start-up costs tied to building a presence could be £10m–£15m with potential first-year losses in the £45m–£60m range, creating near-term cash strain and execution risk.