Home / Knowledge / News / Apparel/Garments / Profit up in H1at NEXT Plc
Profit up in H1at NEXT Plc
03
Oct '11
Next Plc, UK based retailer, announced results for the year ended January 2011.

In a difficult year NEXT has proven resilient. Group revenue for the first half was 3.6% higher than last year and profit before tax was up 8.5% on a continuing basis. The business remains strongly cash generative and continued buyback of shares further enhanced growth in earnings per share, which were 18.6% ahead of last year. The interim dividend increases by 10% to 27.5p per share.

Financial highlights from our continuing business are as follows:
- Revenue up 3.6% to £1,565m
- Profit before tax up 8.5% to £228m
- Earnings per share up 18.6% to 98.3p
- Net debt of £640m and committed facilities of £918m
- Interim dividend up 10% to 27.5p per share

In a difficult year NEXT has proven resilient. In many ways 2011 has presented the perfect storm to the retail economy. On the buying front we experienced the first concerted rise in cost prices for nearly twenty years. This, combined with rising VAT, increased NEXT selling prices by around 7%. In a normal environment price rises would have supressed demand, but the consumer economy has been anything but normal.

Discretionary spending has been further squeezed by inflation in food and fuel, tight control of consumer credit, cuts in government expenditure and broadly stagnant wages. Against this background the NEXT Group has advanced sales, profits and earnings per share.

Our approach has been to focus on four primary objectives:
- The delivery of well stocked ranges, that reflect the latest fashion trends in a way that is accessible to our customers, whilst working hard to mitigate the effects of cost price inflation.
- Grow NEXT Retail sales through continuing to add profitable new space, with a particular focus on new large format Home stores.
- Grow NEXT Directory sales through profitably maximising the potential of our business online, both in the UK and overseas.
- Carefully manage our costs, capital expenditure and balance sheet, so that we can continue to return surplus cash through buying back shares and enhancing earning per share.

NEXT Brand sales (VAT exclusive) were towards the top end of our guidance at +3.2%, of which 2.8% came from new space. Profit before tax was up 8.5%. Our primary measure of success is sustainable long term growth in earnings per share. The business remains strongly cash generative and continued buyback of shares further enhanced growth in EPS, which were 18.6% ahead of last year.

Looking ahead to our full year results, we believe that VAT exclusive NEXT Brand sales for the year will be between 2.0% and 4.5% ahead of last year, which would result in NEXT Group profits being up between +0.4% and +8.7% and EPS up between +7.5% and +16.4%.

Early indications are that retail headwinds are likely to ease as we move into 2012. We have strong evidence that there will be little or no inflation in our own prices and it seems probable that other inflationary pressures will ease as commodity price rises begin to annualise in the first quarter of 2012.

Must ReadView All

Neelesh Hundekari speaking at the event. Courtesy: Subir Ghosh

Textiles | On 27th May 2017

Fabric of Change initiative announces €250000 scaling fund

The Fabric of Change initiative of Ashoka and the C&A Foundation is...

Pakistan's Finance Minister Mohammad Ishaq Dar presenting Budget 2017-18 in National Assembly in Islamabad on May 26. Courtesy: PID, Pakistan

Textiles | On 27th May 2017

Pakistan Budget 2017-18 proposes 4 new measures

To support the textile sector in Pakistan, finance minister Mohammad...

Textiles | On 27th May 2017

Indian exports can touch $325 bn in 2017-18: FIEO

Indian exports are on upward trend in last few months as the country...

Interviews View All

Sanjay Desai & Ashish Mulani
True Colors

Digital textile printing will be the technology of the future

Dharmendra Shah
Ozone PB Spintex Limited

‘We have made huge investments to ensure quality yarn production.’

Smita Murarka
Amanté

‘There is huge demand in the Indian lingerie market for non-wired styles.’

Mohammad Hassan
Biax Fiberfilm

About one in every 20 patients picks up an infection while hospitalised....

Suresh Patel
Sidwin Fabric

Sidwin Fabric is a manufacturer and exporter of polypropylene textiles and ...

Iago Castro Asensio
RCfil Distribuciones S.L.

Iago Castro Asensio, International Business Manager of RCfil...

Robert Brunner
Devereux

Golfwear and menswear brand Devereux is set for greener pastures. Robert...

Wendell Rodricks
Wendell Rodricks

"We should not compare India and the West. There are things we do that...

Mike Hoffman
Gildan Activewear SRL

Gildan Activewear, a manufacturer and marketer of branded clothing and...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

news category


Related Categories:
May 2017

May 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search