Equity Research, Broker Reports, and media content on NEXT PLC etc.

  • Access the latest forecasts, broker valuations, multiples, and video content from the city about NEXT PLC
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Equity Research, Broker Reports, and media content on NEXT PLC etc.

  • Access the latest forecasts, broker valuations, multiples, and video content from the city about NEXT PLC
  • See live updates from analysts, company announcements, and other news in a personalised/single dashboard

Latest Content

Breakfast Today

  • 16 Sep 16

"Have the central banks run out of ideas? Traders are hearing this common narrative, and it's starting to worry. Globally ultra-low rates are on offer everywhere while every viable corner to apply stimulus has been sought out, but all to little net effect. Yesterday, Bundesbank President, Jans Weidmann, even took the opportunity to remind the European Central Bank that its easy-money policies could curb productivity, undermine banks' ability to lend while keeping inefficient enterprises alive. His views are shared by other senior bankers who are keen to stop even deeper ECB interventions in financial markets and fire similar warning shorts across Mario Draghi's bows. A week before the FOMC gathers for its September meeting, with members having already openly aired their sharply contrasting opinions, many are now suggesting that, as difficult as it sounds, some sort of concerted, global political intervention will be required to help policymakers recreate globally sustainable economic conditions, with a view to first getting growth and inflation back on predictable trend. All very worrying, but Ignoring the bigger picture for now and instead playing the shorter game, the principal US indices all rose broadly yesterday, led by the expectation interest rates will remain unchanged this month, tech stocks put in good gains while also seeing some recovery of previous day losses for energy stocks. This was enough for all 30 components of the Dow to close higher. With the Chinese, Hong Kong and the South Korean markets closed in Asia for their Mid-Autumn Festival holiday, Japan traded higher as its tech stocks followed the NASDAQ's lead and the ASX saw major commodity plays regain some of their confidence. Today's EU summit in Slovakia should grab some headlines, as leaders contemplate life without the UK and the Union's future existential challenges. The UK is not scheduled to release any important macro data and no major corporates are due to release earning figures today, although investor's will be keen to hear a response from Deutsche Bank which learned overnight of the US$14bn penalty proposed by the US to resolve the ongoing mortgage probe in its territory. The FTSE-100 is seen drifting some 10 points lower during opening trade on relatively light volumes." - Barry Gibb, Research Analyst

Directory well on track

  • 15 Sep 16

H1 performance was in line with company’s guidance with sales up 2.6% to reach £1,957m. The Directory’s sales have significantly outperformed with a 7.1% surge to reach £821.2m. Retail sales remained almost flat (+0.1%) at £1,083.6m. Operating profit dropped by 0.4% to £360.5m, pulled down by the -16.8% on retail profit to £133.9m, i.e. an operating margin of 12.4% vs. 14.9% in H1 15. The Directory’s operating profit was up 10.9% to reach £204.2m, generating an operating margin of 24.9% compared to 29% a year earlier. Net profit retreated slightly to £273.5m. The Directory’s customer base has expanded by 5% to 4.7 million, of which 3.85 million in the UK (+3%). The overseas base was up 19% to 850k and continued to trade well with full price sales up +21%. E-commerce has consolidated its share to the Next brand activity, contributing 42% to group sales and 56.6% to group operating profit. The average active customer base rose 5%, boosted by a 19% jump in overseas clients. Franchise sales were down 12% due to weak trading conditions and fierce competition from the company’s online offer. It is worth noting that the company is operating 179 franchised stores in 37 countries. The work done in inventory management have improved the available immediate dispatch percentage from 66% to 71%, although inventories increased to £491m, i.e. +8.9% yoy. Operating cash flow (after taxes) amounted to £266.5m, compared to £245.2m in H1 15. The net cash outflow for the first half was £96m and net debt increased from £850m at the beginning of the year to £946m at the end of July. The interest charge was up to £18.4m, reflecting higher debt levels. Capex remained almost flat at £74.7m. The pound depreciation has no effect on margins this year as most of the requirements in the forward markets are covered. The impact is estimated at 5% of cost prices in 2017 and this should be passed on to sales prices based on an assessed impact of a 0.5-1% fall in like-for-like sales value. The guidance of +/- 2.5% sales growth was maintained for the current year. An interim dividend of 53p was proposed to be paid in January.

Good performance in 2015 but unreassuring outlook

  • 24 Mar 16

Full-year sales increased by 3% to £4.18bn, pulled up by directory sales growing by 7.7% to £1.66bn. Retail sales amounted to £2.37bn, posting a poor performance of 1.1% with net new space contributing 2.4% to growth. The LABEL-branded directory sales outperformed with 21.2% growth compared to a modest +2.3% for the core brand NEXT. International revenues surged by 21% to £197m (increase in local currency at 41%). The activity was boosted by the consolidating directory customer base rising by 11% to 4.58m, of which 760k outside the UK. Franchise revenues decreased by 12% because of the negative currency impact and unfavourable sales momentum in some important markets. The group’s operating profit grew by 4.9% to £851.8m, posting an operating margin of 20.4%. The Retail division impressed with an operating profit rising by 4.8% to £402.1m and a 60bp increased margin to 16.9%, despite the fast-growing property commitments. The segment benefited from an improving gross margin and reduced staff overheads. The Directory segment posted an operating income of £405.2m (+7.5%) equivalent to a flat margin of 24.4%. Net profit surged by 5% to £666.8m. The retail network remained flat in the number of stores (540) but increased in space by 3.7% in square feet. The company has been closing the smaller stores as they are less profitable. Capex amounted to £151m vs. £110m a year earlier. Net debt rose to £850m because of the special dividends worth £341m, the share buy-backs of £151m and the surging receivables up 24.4%. The total ordinary dividend proposed is 158p vs. 150p in 2014.


Research, Charts & Company Announcements

Research Tree offers NEXT PLC research coverage from 3 professional analysts, and we have 7 reports on our platform.

Our simple but effective charting function allows for a quick scan of NEXT PLC's performance over multiple time horizons.

Date Source Announcement
18/10/2016 18:11:20 London Stock Exchange Transaction in Own Shares
17/10/2016 17:08:56 London Stock Exchange Transaction in Own Shares
17/10/2016 15:05:10 London Stock Exchange Director Disclosure
14/10/2016 18:00:54 London Stock Exchange Transaction in Own Shares
13/10/2016 17:53:01 London Stock Exchange Transaction in Own Shares
11/10/2016 18:19:35 London Stock Exchange Transaction in Own Shares
10/10/2016 18:10:22 London Stock Exchange Transaction in Own Shares
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