TIDMNXT
RNS Number : 7432C
Next PLC
20 March 2014
Date: Embargoed until 07.00hrs, Thursday 20 March 2014
Contacts: Lord Wolfson, Chief Executive
David Keens, Group Finance Director
NEXT PLC Tel: 0844 844 8888
Alistair Mackinnon-Musson Email: next@rowbellpr.com
Rowbell PR Tel: 020 7717 5239
Photographs: http://press.next.co.uk/media/company-images/campaignimages.aspx
Next Plc
RESULTS FOR THE
YEAR ENDING JANUARY 2014
Chairman's Statement
The year to January 2014 was a great year for NEXT. Underlying
earnings per share grew by 23% to 366p and we propose to increase
our full year ordinary dividends by 23% to 129p in total. This is
the fifth consecutive year that our earnings per share and ordinary
dividend have grown by over 15%. In addition, in February we paid a
special dividend of 50p a share and have announced a further
special dividend of 50p to be paid in May.
Sales for NEXT Directory, our online and catalogue business,
grew by 12.4% narrowing the gap with NEXT Retail, which grew by
1.7%. The two businesses are complementary and support each other
in an effective and efficient way. Operating margins in both
businesses increased during the year. The Group's underlying profit
before tax rose 11.8% to GBP695m.
Cash flow was again strong and we continued our share buybacks,
purchasing 6.2 million shares at an average price of GBP47.40 and
reducing our shares in issue by 3.8%. During the year we returned
GBP461m to shareholders through share buybacks and dividends.
Our share price again performed well, rising by 55% to GBP62.80.
As a result of the increase, we stopped buying back our own shares
at the end of October and have instead started to return surplus
cash to shareholders through special dividends. We will reconsider
buybacks when to do so would give an effective 8% return on the
cash invested.
During the year there have been a number of changes to the
Board. Andrew Varley, who had been a director for 23 years, retired
from the Board in May 2013. Andrew has been with NEXT for 29 years,
serving in various senior roles. On behalf of the Board I would
like to thank him for all he has done for NEXT, particularly as our
Group Property Director.
Christine Cross, who has made a much valued and active
contribution to the Group as a Non-Executive Director, has served
for 9 years and will step down from the Board at the AGM in May. We
are currently searching for a new non-executive and will make an
announcement in due course. Jonathan Dawson, our Senior Independent
Director who has also served 9 years, has agreed to stay on the
Board for one further year.
I am delighted to welcome onto the Board Michael Law, our Group
Operations Director, and Jane Shields, our Group Sales and
Marketing Director. Both joined the Board last July.
The strength of our Group is built on the hard work and
productivity of our management team and all the people who work for
NEXT. I would like to thank them all for their contribution during
the year and especially for the excellent performance through the
busy Christmas period.
That performance gives us a solid platform for 2014. Our
strategy remains the same, focused on our products, our
profitability and returning cash to our shareholders.
Notwithstanding the continued pressure on the UK consumer, we
anticipate another year of growth for NEXT.
John Barton
Chairman
Chief Executive's Review
OVERVIEW
NEXT has had another good year, achieving 5.4% growth in sales
and 11.8% growth in underlying profit before tax. Strong cash
generation enabled us to buy back 3.8% of shares outstanding
without increasing financial leverage which, along with a lower tax
rate, resulted in earnings per share (EPS) growing much faster than
profits.
In the year to January 2014, underlying post-tax EPS grew by
23%. Our full year dividend is being increased in line with EPS, to
129p in total. We have announced two special dividends, each of 50p
per share. The first was paid on 3 February and the second is
payable on 1 May.
REVENUE excluding VAT January January
2014 2013
GBPm GBPm
NEXT Retail 2,227.6 2,190.9 +1.7%
NEXT Directory 1,341.0 1,192.6 +12.4%
======== ========
NEXT BRAND 3,568.6 3,383.5 +5.5%
Other 171.4 164.3 +4.3%
======== ========
Total 3,740.0 3,547.8 +5.4%
======== ========
PROFIT and EPS January January
Underlying excluding 2013 exceptionals 2014 2013
GBPm GBPm
NEXT Retail 347.7 331.1 +5.0%
NEXT Directory 358.5 302.1 +18.7%
Other 16.6 17.0
======== ========
Operating profit 722.8 650.2 +11.2%
Net interest (27.6) (28.6)
======== ========
Profit before tax 695.2 621.6 +11.8%
Taxation (142.0) (148.5)
======== ========
Profit after tax 553.2 473.1 +16.9%
======== ========
EPS 366.1p 297.7p +23.0%
Ordinary dividends per share 129.0p 105.0p +22.9%
========================================= ======== ======== =======
NEXT PLC ECONOMICS
2014 Profit Drivers
The table below sets out the main drivers of the Group's Profit
and Loss account for the year. This shows how the sales from (1)
new Retail space and (2) Online increased profit. Our existing
stores (3) made the same profit as last year. It also shows how (4)
cost inflation has been more than offset by (5) cost savings.
Profit Year Ending Jan 2013 GBP622m
======================================== ========== ========= =======
Profit from sales increases/decreases
(1) Profit from new space +GBP12m
(2) Profit from additional online +GBP48m
sales growth
(3) Cost/Profit of existing stores -
======================================== ========== ========= =======
+GBP60m +9.7%
Cost increases and savings
(4) Inflation in cost base - GBP59m
(5) Cost savings +GBP72m
======================================== ========== ========= =======
+GBP13m +2.1%
============================================================= =======
Profit Year Ending Jan 2014 GBP695m +11.8%
==================================================== ======== =======
Profit driver diagram: Click or paste the following link into
your web browser to view the PDF document. Refer to page 5 for the
relevant diagram.
http://www.rns-pdf.londonstockexchange.com/rns/7432C_-2014-3-20.pdf
Straightforward Objectives
NEXT's Operating Objectives
The Company has five operational objectives, as set out in the
table below. These aims remain broadly unchanged from those given
in this report last year. The only significant change is the
addition of improving customer service as a goal for the year
ahead.
Develop the Develop, improve and expand our product ranges,
NEXT Brand with particular emphasis on improving design
across all our ranges.
===================== =======================================================
Invest in online Invest in growth from our online business, through
growth improving UK delivery services, developing new
overseas markets and expanding our online product
offer.
===================== =======================================================
Invest in profitable Open profitable new retail space, maintaining
new space the Company's strict payback and profitability
hurdles of 15% net store profit (before central
overheads) and payback on net capital invested
in 24 months.
===================== =======================================================
Improve service Improve the quality of our service to customers
provided by staff, both in stores and in our
call centres.
Control costs Control costs through constantly developing
more efficient ways of operating. This must
be done without detracting from the quality
of our products and services.
NEXT'S Financial Objective
For the last ten years NEXT has had one clear financial
objective: to deliver long term, sustainable growth in earnings per
share (EPS). This objective is grounded in the belief that, over
time, share price growth will follow growth in EPS. The graph below
shows how our share price has indeed tracked EPS over the last 15
years, albeit that some patience has been required.
EPS and share price diagram: Click or paste the following link
into your web browser to view the PDF document. Refer to page 7 for
the relevant diagram.
http://www.rns-pdf.londonstockexchange.com/rns/7432C_-2014-3-20.pdf
The graph also demonstrates the historically high rating the
shares currently enjoy. In our Annual Report last year we set out
the criteria by which we would decide the maximum price we would
pay to buy back shares. We introduced the concept of Equivalent
Rate of Return (ERR). ERR is the return required from an
alternative investment, if that investment were to produce the same
level of earnings enhancement as the proposed buyback.
We set the minimum ERR at 8%, which we consider a reasonable
target for a return on equity investments. In November last year,
as our shares continued to rise, the ERR on share buybacks fell
below the 8% threshold. As a result, we introduced rolling special
dividends in place of buybacks. We intend to continue distributing
surplus cash through special dividends, paid on a quarterly basis,
until such time as the ERR rises above 8%.
Whilst the underlying financial objective of the Group remains
unchanged in principle, the introduction of special dividends mean
that our financial goal is now better expressed as the delivery of
long term sustainable growth in Total Shareholder Returns; where
Total Shareholder Returns are defined as growth in EPS added to the
total annual dividend yield.
PRODUCT AND THE NEXT BRAND
Unlike many high street retailers, NEXT designs and directly
sources the vast majority of its products. We can do more to
leverage our design resources and sourcing base to produce better
quality fabrics, print designs, trim detailing and make up. In
particular we will continue to push our design teams to adopt new
trends in depth and with conviction. This approach of taking
greater fashion risks may sound counter-intuitive but, in today's
fast moving fashion environment, to fall back on "safe" historical
ranges would merely guarantee failure. On the whole, our experience
is that where we have been braver in buying into new trends, we
have been successful.
We have also adjusted our buying cycle to reflect the continuing
trend for consumers to buy closer to the point at which they need
the clothing. Our aim is to increase the availability of cold
weather clothing in January, February and March and warm weather
clothing in August and September. Going forward we will move away
from a two season buying cycle to a four season cycle and our
customers will see a bigger change from spring into summer (in
April) and autumn into winter (in October).
Over the last 6 years we have made significant progress in
developing our Home business. Trading space has more than doubled
to 1.7 million square feet and Home sales now account for 18% of
our total turnover. Over the next few years we intend to grow Home
further by adding retail space and improving our online
functionality.
RETAIL
Retail Sales
Total Retail sales were 1.7% ahead of last year, of which new
space contributed 3.1%.
Full price sales grew by 2.9%. Markdown sales were 11% down as a
result of stock for Sale being 15% lower than last year. This
unusually low level of markdown came as a result of a last minute
sales surge immediately before the summer and winter Sales. In the
year ahead we expect markdown levels to return to more normal
levels.
Retail Space Expansion
Space added in the year
Trading space increased by 280,000 square feet over the year,
taking us to 7 million, as shown below.
Store Sq. Ft.
Numbers (000's)
============================= ========= =========
January 2013 540 6,728
New stores +11 +192
Closures - 10 - 67
Re-sites (8) and extensions
(13) - +155
January 2014 541 7,008 +4%
Portfolio Shape and Profitability
Whilst our space increased by 4%, the number of stores barely
changed. Much of our new space has come from extending and
re-locating in existing trading locations. Stores in new locations
have been offset by the closure of smaller less profitable shops.
As a result of this active management of our less profitable
stores, our Mainline portfolio remains highly profitable despite
continuing negative like for like sales in many locations. More
than 90% of our sales come from stores which deliver more than 15%
profit contribution on sales.
Mainline store profitability Percentage of turnover
============================== =======================
>20% 76%
>15% 91%
>10% 96%
>5% 98%
>0% 99.5%
============================== =======================
Rental inflation remains very low, with most stores experiencing
little or no increase at rent review. In the vast majority of
cases, when stores reach the end of their lease, we have been able
to reduce rents.
Returns on Capital and Profitability
Profitability of stores opened in the last 12 months is forecast
to average 22% and payback on the net capital invested is expected
to be 19 months. Both figures are within Company investment hurdles
of 15% store profitability and 24 months capital payback.
New space Sales vs Forecast Forecast
target profitability payback
=================== ========= =============== ==========
Fashion +4.4% 22% 19 months
Large Home format +3.5% 21% 22 months
==========
Total +4.3% 22% 19 months
Retail Space - Pipeline
We continue to look for opportunities to profitably increase UK
selling space. For the coming year we expect to add 360,000 square
feet (net of closures). We expect 113,000 of this to come from
three large Home format out-of-town stores. For two of these shops
(Maidstone, Kent and Hedge End, near Southampton) they are being
built from the ground up to our own design, enabling us to ensure
that the architecture of the building reflects the aspirations of
our Brand.
Retail Service
If our customers were to be asked to rate NEXT's service we
believe many would say it was generally good but not consistently
exceptional. We think that we have an opportunity to improve both
the consistency and quality of our retail customer service. During
the last six months we have changed our recruitment processes,
appraisal systems, training materials, man-hour planning systems
and monthly bonus scheme with a view to focussing our store teams
on providing better service. Initial results have been encouraging
but there is a way to go.
In addition, we aim to improve the levels of staff experience in
the business by increasing the average weekly contract worked by
our staff. This change will take time and will be achieved through
natural staff turnover. So that as and when staff leave the
business some of their hours will be re-allocated to existing team
members who want the extra work.
Retail Profit Analysis
Full year operating margin improved by 0.5% to 15.6%. The table
below sets out significant margin movements by major heads of
costs.
Net operating margin last year 15.1%
=============================================================================== ======
Bought-in gross
margin In line with last year. 0.0%
Retail stock for Sale was down 15% with
markdown sales down only 11%. Margin
improved as a result of (1) higher participation
of full price sales during the year and
(2) improved clearance rates of Sale
Lower markdown stock. +0.8%
Reduction in freight, Lower freight costs, improved fabric
fabric and stock utilisation and reduced stock loss all
loss served to increase margin. +0.5%
Reduction in store In-store efficiency initiatives covered
payroll the cost of the annual pay review. +0.1%
Rents and rates increased as a percentage
of sales due to (1) negative like for
like sales, (2) business rates and some
Increase in store rent inflation and (3) additional repair
occupancy and store equipment write off costs. -0.7%
Central overheads Increased cost mainly due to staff incentives. -0.2%
Net operating margin this year 15.6%
DIRECTORY
Sales Analysis
Directory sales were 12.4% ahead of last year. The table below
shows the contribution to growth made by our UK and overseas online
businesses.
Contribution to sales
growth
==================== ======================
UK 8.5%
International 3.9%
Total sales growth 12.4%
New Customers
Directory active customer numbers increased year on year by
10.8% to 3.7 million, with growth coming from UK credit, UK cash
and Overseas customers.
Average customers ('000s) Jan Jan Change Contribution
2014 2013 to customer
growth
=========================== ====== ====== ======= =============
UK cash customers 633 493
UK credit customers 2,798 2,697
====== ======
Total UK customers 3,431 3,190 +241 7.2%
Overseas customers 268 148 +120 3.6%
====== ======
Total active customers 3,699 3,338 +361 10.8%
Directory Development - UK
Service Improvements
In October of this year we introduced free, next-day delivery to
stores for customers who ordered before 10pm. This service is now
available in 341 stores, which account for 74% of our retail
turnover. As a result the percentage of orders made from home and
delivered to store has risen from 30% to around 45%. In the year
ahead we intend to extend this service to stores accounting for 99%
of our retail turnover.
Going forward we will increase focus on improving the
reliability of our Directory services. We fail to deliver around 2%
of our parcels at the promised time, but know that there is an
opportunity to improve this reliability. However, whatever
improvements we make, there will always be a small number of
errors. How our staff handle these rare events is central to
developing our reputation. A Company's ability to rectify mistakes
is, for many customers, the litmus test of great service. We can do
much to respond better to these occasions through improved
recruitment, staff training and systems.
Directory Product Offer
Our retail stores receive injections of new lines roughly every
six weeks, with the year being divided into nine Retail phases.
Directory has been reliant on the publication of four big
catalogues and has missed out on some of the newest Retail stock.
In future we will be adding stock to our website to coincide with
our Retail phases, this stock will be supported by a number of
"New-In" brochures.
For some years now NEXT has sold non-competing non-NEXT brands
through the NEXT Directory. This year we are further expanding the
branded offer in the Directory itself and, more importantly,
trialling a standalone publication devoted exclusively to third
party brands. This publication, which is currently called LABEL,
has been distributed to 400,000 customers.
Directory Development - International
We continue to make good progress developing our internet
business overseas. International online sales grew by 86% and
contributed 3.9% to Directory growth. However, with a turnover of
just over GBP100m, it is still relatively small and it would be a
mistake to over-emphasise its importance. All overseas sales are
currently serviced from our UK warehouses through third party
distribution networks.
Sales Initiatives
Growth has been driven through a combination of improved
pricing, site translations, the acceptance of new domestic
currencies and the development of new territories. Of these
factors, permanent price reductions have been by far the most
important. The table below sets out the international growth
drivers for last year and those planned for the year ahead. In
addition to the initiatives listed in the table, we will be
investigating ways to improve our delivery service in key
territories.
Growth Driver Completed January 2014 Planned by January 2015
==================== =========================== ==============================
Lower Prices Prices lowered in 28 Prices to be lowered
territories representing in 5 countries representing
52% of turnover only 2.3% of turnover
Translations Traditional Chinese script New languages including
(Taiwan) French, Spanish, Polish,
Arabic, Simplified Chinese
script and Hebrew
Domestic Currencies Five countries converted 11 countries converting
to domestic currency to domestic currencies
New Territories China, Egypt, Brazil,
Oman, Saudi Arabia, Belarus,
Libya, Malta, Cyprus,
Lebanon and Azerbaijan
New Tender Types Qiwi (Russian e-wallet) Paypal, Klarna (Germany)
Online Overseas Profitability and the Year Ahead
Net margins on our overseas business fell from 19% to 18%,
reflecting keener prices and some marketing initiatives. We expect
net margins in the year ahead to remain at 18%.
Going forward we expect growth rates to ease a little, as the
price adjustments made in 2013 begin to annualise. We are currently
forecasting for International online sales to grow by 50% to
GBP150m. The table below sets out the last two years sales, profits
and net margins alongside our budget for the current year.
GBPm January 2013 January 2014 January 2015
(e)
Sales GBP54m GBP101m GBP150m
Net Profit GBP10m GBP18m GBP27m
============ ============= ============= =============
Net Margin 19% 18% 18%
Directory Profit Analysis
Full year operating margin improved by 1.4% to 26.7%. The table
below sets out significant margin movements by major heads of
costs.
Net operating margin last year 25.3%
============================================================================ ================
Bought-in gross margin improved due to
Bought-in gross a planned reduction in sales of lower
margin margin electrical products. +0.2%
Directory stock for Sale was down 9%
whereas markdown sales were level. Margin
improved as a result of (1) higher participation
of full price sales during the year and
(2) improved clearance rates of Sale
Lower markdown stock. +1.8%
Freight, fabric Lower freight costs, improved fabric
and stock loss utilisation and reduced stock loss. +0.2%
Service charge income increased, but
at a lesser rate than total sales due
Service charge & to the increased participation of International
bad debt and UK cash sales. -0.4%
International sales increased distribution
costs, reducing margin by -0.7%. Using
Increase in warehouse our store network for more UK parcel
and distribution collections and returns improved margin
costs by +0.2%. -0.5%
Catalogue production Catalogue production costs increased,
costs but at a lesser rate than sales. +0.2%
Reduced margin mainly due to increased
Central overheads staff incentives. -0.1%
Net operating margin this year 26.7%
COST INFLATION AND COST CONTROL
This year we have more than offset cost increases with cost
savings. The tables below outline the main contributors to cost
increases and cost savings over the last year. Cost control remains
at the heart of the business and we remain determined that cost
savings must come through innovation and efficiency rather than any
compromise to our product quality or services.
Cost Increases GBPm
===================================================== =====
Cost of living awards, other wage related inflation
and staff incentives 28
Rent, rates & other occupancy costs 13
Costs of Directory delivery service improvements 9
Warehouse capacity 5
Systems investments and other 4
=====
Total Cost Increases 59
Cost Savings GBPm
================================================ =====
Lower markdown 18
Freight, fabric and stock loss 15
Directory operating efficiencies 15
Retail manpower efficiencies and other cost
savings 13
Non-stock purchasing improvements (e.g. paper) 7
Other 4
=====
Total Cost Savings 72
In the year ahead we expect cost increases of around GBP44m.
Anticipated wage increases account for GBP27m of this rise, the
majority of which comes from our annual cost of living award. We
expect these cost increases to be more than offset by cost
savings.
Head Office, Warehouse and Systems Projects 2014/15
The rapid growth of our Online and Home businesses means that we
have an unusual number of big systems and warehousing projects
starting in the current year. These projects will give some
operational benefits but are mainly required to facilitate
continued growth or replace obsolete systems. Most systems
development costs are revenue costs and written off in the year
they are incurred. Hardware and other infrastructure are
depreciated over the life of the asset.
The table below sets out the largest projects and their
estimated capital and revenue costs.
Project Revenue Capital
Life Years Costs Costs
(e) (e)
=============================================== ============ ======== ========
Store till, back office and payment systems 1 GBP3m GBP8m
upgrade
Mainframe upgrade and modernisation 2 GBP3m -
International website re-write and convergence 2 GBP1m -
with UK
Systems office refurbishment and data 1 - GBP5m
centres
Home warehouse expansion (including GBP8m 2 - GBP11m
for land)
Total GBP7m GBP24m
Total likely to be incurred in year ending GBP5m GBP20m
January 2015
OTHER GROUP BUSINESSES
NEXT Sourcing
NEXT Sourcing (NS) had a good year, increasing sales and
achieving a profit of GBP34m. NS competes for business against the
many other suppliers to NEXT Retail and NEXT Directory, it
continued to provide more than 40% of NEXT Brand stock. Each of its
in-country offices operates in a very competitive environment, both
against external suppliers and other NS offices.
GBPm 2014 2013
================== ====== ======
Sales 571.2 507.1 +13%
Operating profit 34.1 30.8 +11%
======
Operating margin 6.0% 6.1%
We are forecasting NEXT Sourcing profits of GBP36m in the year
ahead.
International Retail and Franchise Stores
Our franchise business, with partners operating 173 stores in 35
countries, continued to grow both sales and profits. The number of
directly owned stores has been reduced to 16 and they broke even
for the first time. Our 11 stores in Central Europe made a small
profit, offset by a small loss in China. We do not aim to
expand
our directly owned international stores. Revenue and profit are set out below.
GBPm 2014 2013
=================== ===== =====
Franchise income 71.0 61.5
Owned store sales 14.6 16.2
===== =====
Total revenue 85.6 77.7 +10%
Operating profit 12.1 8.4 +44%
===== =====
We are budgeting for International Retail to make a profit of
GBP14m in the year ahead.
Lipsy
Full year sales of GBP63m and operating profit of GBP5m, before
amortisation and profit share of GBP2m, was the best performance in
our five years of ownership. Lipsy's retail sales were GBP20m,
taken from 49 stores trading 57,000 square feet, and sales to
wholesale customers were GBP22m. Online sales, through Lipsy's own
site and the NEXT Directory were GBP21m. We expect further sales
and profit growth from Lipsy in the years ahead.
CENTRAL COSTS AND OTHER ACTIVITIES
The table below sets out other Group and non-trading
activities.
GBPm 2014 2013
===================== ======= =======
Property management 1.8 3.5
Central costs (33.3) (35.3)
Pension variation 2.6 3.6
Unrealised foreign
exchange (5.9) 3.4
Associates 2.5 0.6
Total (32.3) (24.2)
Unrealised Foreign Exchange IAS 39
The GBP6m loss for the year compares with a GBP3m gain in the
prior year. At this time it is not possible to predict the year
ahead, so group profit guidance assumes no IAS 39 gain or loss.
Interest and Taxation
The interest charge was GBP28m, GBP1m less than last year. For
the coming year we expect net debt to again range between GBP500m
and GBP750m. This will result in an interest charge of GBP30m due
to the higher level of bond debt and low interest rates available
on cash deposits.
Our tax rate reduced as expected to 20.4%, due to the reduction
in headline UK corporation tax rates and agreement of prior year
items with HMRC. We expect our effective rate will be no higher
than 21% in each of the next two years.
BALANCE SHEET AND ORDINARY DIVIDENDS
The balance sheet remains strong, with year end net debt of
GBP517m and forecast peak borrowing requirements being very
securely financed by our bonds and committed bank facilities of
GBP1,088m. During the last six months we repaid the 2013 bond,
issued a new 12 year bond and extended our bank facility, all as
set out below.
GBPm
================================= ======
2016 bonds 213
2021 bonds 325
2026 bonds 250
Total bonds nominal value 788
2019 committed bank facility 300
======
Total debt facilities available 1,088
Final Dividend
We have proposed raising our final dividend to 93p, taking the
total dividend for the year to 129p. The increase of 23% is in line
with growth in underlying EPS. Dividend cover remains at 2.8
times.
CASH GENERATION, SHARE BUYBACKS AND SPECIAL DIVIDENDS
Cash Generation
Over the last year we generated GBP326m of surplus cash after
capex, interest, dividends and tax, of which GBP26m was used to
maintain our ESOT. The balancing GBP300m was returned to
shareholders through share buybacks and permanently increasing the
level of cover in our ESOT (which enhances EPS by as much as a
buyback).
We expect to generate around the same amount of free cash in the
year ahead and are again budgeting to return GBP300m of cash to
shareholders during the year. We paid a GBP75m special dividend in
February and have committed to a further GBP75m special dividend
which will be paid in May. Assuming the share price remains at its
current level and our profit expectations remain unchanged, it is
our intention to carry on paying quarterly special dividends for
the remainder of the current year.
Share Buyback Price Limit Going Forward
In the Chief Executive's Review last year we set out the
criteria by which we would decide the maximum price the Company
would pay to buy back shares. We introduced the concept of
Equivalent Rate of Return (ERR). ERR is the return required from an
alternative investment, if that investment were to produce the same
level of earnings enhancement as the proposed buyback. We set the
minimum ERR at 8%, which we consider a reasonable target for a
return on equity investments.
Over the course of the year we have discussed this concept with
our shareholders. Most agree that the 8% limit is reasonable but
many have commented that it would be more logical to use the
Company's guidance for forward profits as a basis for calculating
the 8% ERR, rather than historic profits. We agree with this point
and, going forward, will set our price limit on the basis of the
mid-point of our forward guidance.
For year ending January 2015 the mid-point of our guidance is
for profit before tax to be GBP750m (see below). On this basis a
buyback of GBP300m at GBP62.45 would give an ERR of 8% and this
figure now represents our upper limit for share buybacks. For
clarity, in order for us to revert back to a buyback programme we
would need to be convinced that any share price move below our
target was likely to be sustained and that our profit expectations
had not changed.
OUTLOOK FOR 2014
The Consumer Economy
The consumer economy has steadily improved over the course of
the last year. This modest improvement looks set to continue.
However, conditions are likely to remain far from buoyant and there
are real risks to the sustainability of the current recovery.
Employment Remains Strong
The most positive aspect of the economy remains employment,
which continues to rise to record highs.
Total UK Employment graph: Click or paste the following link
into your web browser to view the PDF document. Refer to page 18
for the relevant graph.
http://www.rns-pdf.londonstockexchange.com/rns/7432C_-2014-3-20.pdf
Credit Constraints Recede
Consumer credit has been steadily flowing back into the market.
The graph below shows the reversal of credit flows back into the
market during 2013, with positive flows of around GBP7bn during the
year (which equates to around 1% of UK earnings). Mortgage
approvals are also growing strongly and housing transactions are
following suit, this change has been reflected in strong growth in
our Home division over the last six months.
UK Credit Flow graph: Click or paste the following link into
your web browser to view the PDF document. Refer to page 18 for the
relevant graph.
http://www.rns-pdf.londonstockexchange.com/rns/7432C_-2014-3-20.pdf
Real Earnings Pressure Easing but Still Negative
Throughout 2013, growth in earnings began to close the gap with
inflation. Encouragingly, in January there was little or no decline
in real earnings. If this trend continues, and real earnings move
into growth, it will be good news for the UK consumer environment.
It would be the first time we have seen growth in real earnings for
over five years.
UK Real Earnings - CPI and Earnings Growth graph: Click or paste
the following link into your web browser to view the PDF document.
Refer to page 19 for the relevant graph.
http://www.rns-pdf.londonstockexchange.com/rns/7432C_-2014-3-20.pdf
Nonetheless, it is worth noting that last year's increase in
spending appears to have been driven through increased credit (see
above). If anything has been learnt from the last ten years it is
that credit cannot continue to grow faster than wages forever.
Until we see significant increase in the supply side of the economy
(profitable investment and improved productivity), we cannot bank
on a return to sustained growth. Consequently we remain cautious in
our budgeting for the year ahead.
Outlook for NEXT Brand Sales 2014
We are budgeting for total NEXT Brand sales growth of between 4%
and 8% in the year ahead, this compares to the 1% to 4% estimate we
gave at this time last year. It reflects the underlying improvement
in the economy and the fact that we are opening 1% more new space
than last year.
Some might argue that our sales range is conservative when
compared to the 5.5% growth we achieved last year. However, last
year's total was significantly enhanced by the exceptional last
quarter. In the year ahead we expect the fourth quarter to provide
tough comparatives and it will be hard to beat. Accordingly we are
budgeting very cautiously for the final quarter. The chart below
illustrates the anomalous performance in Q4.
NEXT Brand Quarterly Sales Growth 2013/14 graph: Click or paste
the following link into your web browser to view the PDF document.
Refer to page 20 for the relevant graph.
http://www.rns-pdf.londonstockexchange.com/rns/7432C_-2014-3-20.pdf
Guidance - Group Profits and EPS for the Year Ahead
The table below sets out our guidance for the full year. For the
purposes of this guidance we have assumed that surplus cash of
GBP300m is returned as special dividends, in reality this will
depend on the prevailing share price as explained above.
Lower end Upper end
Guidance Estimates of guidance of guidance
========================================= ============= =============
Total Brand sales % growth +4% +8%
Profit before tax GBP730m GBP770m
Profit before tax % growth +5% +11%
Ordinary Dividend Yield (assuming GBP65
share price) +2% +2%
Special Dividend Yield (assuming GBP65
share price) +3% +3%
------------- -------------
Total Shareholder Returns +10% +16%
------------- -------------
Interim Management Statement
Our next statement will cover the first thirteen weeks of the
year, to 26 April 2014, and is provisionally scheduled for
Wednesday 30 April 2014.
Lord Wolfson of Aspley Guise
Chief Executive
20 March 2014
UNAUDITED CONSOLIDATED INCOME STATEMENT
Year to January Year to January 2013
2014
------------------------------------------
Underlying Exceptionals
& total Underlying (Note 3) Total
GBPm GBPm GBPm GBPm
Revenue 3,740.0 3,547.8 15.0 3,562.8
Cost of sales (2,499.9) (2,431.1) (5.9) (2,437.0)
(_________) (_________) (_________) (_________)
Gross profit 1,240.1 1,116.7 9.1 1,125.8
Distribution costs (296.2) (269.5) - (269.5)
Administrative expenses (217.7) (201.0) - (201.0)
Other (losses)/gains (5.9) 3.4 35.8 39.2
(_________) (_________) (_________) (_________)
Trading profit 720.3 649.6 44.9 694.5
Share of results of associates 2.5 0.6 - 0.6
(_________) (_________) (_________) (_________)
Operating profit 722.8 650.2 44.9 695.1
Finance income 0.7 0.4 - 0.4
Finance costs (28.3) (29.0) - (29.0)
(_________) (_________) (_________) (_________)
Profit before taxation 695.2 621.6 44.9 666.5
Taxation (142.0) (148.5) (9.4) (157.9)
(_________) (_________) (_________) (_________)
Profit for the year 553.2 473.1 35.5 508.6
(_________) (_________) (_________) (_________)
Profit for the year attributable
to:
Equity holders of the parent
company 553.2 473.2 35.5 508.7
Non-controlling interest - (0.1) - (0.1)
(_________) (_________) (_________) (_________)
Profit for the year 553.2 473.1 35.5 508.6
(_________) (_________) (_________) (_________)
Year to January Year to January 2013
2014
------------------------------------------
Underlying
& total Underlying Total
Earnings per share (Note 4)
Basic earnings per share 366.1p 297.7p 320.1p
Diluted earnings per share 355.6p 289.9p 311.7p
UNAUDITED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
Year to Year to
January 2014 January 2013
GBPm GBPm
Profit for the year 553.2 508.6
Other comprehensive income and expenses:
Items that will not be reclassified to profit
or loss
Actuarial losses on defined benefit pension
scheme (12.6) (19.7)
Tax relating to items which will not be reclassified 5.0 5.9
(_________) (_________)
Sub-total items that will not be reclassified (7.6) (13.8)
(_________) (_________)
Items that may be reclassified to profit or
loss
Exchange differences on translation of foreign 3.0 -
operations
(Losses)/gains on cash flow hedges (21.9) 1.6
Transferred to income statement on cash flow
hedges (14.9) (4.5)
Transferred to the carrying amount of hedged
items on cash flow hedges 8.5 (0.3)
Tax relating to items that may be reclassified 5.3 1.0
(_________) (_________)
Sub-total items that may be reclassified (20.0) (2.2)
(_________) (_________)
Other comprehensive expense for the year (27.6) (16.0)
(_________) (_________)
Total comprehensive income for the year 525.6 492.6
(_________) (_________)
Attributable to:
Equity holders of the parent company 525.6 492.7
Non-controlling interest - (0.1)
(_________) (_________)
Total comprehensive income for the year 525.6 492.6
(_________) (_________)
UNAUDITED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Year to Year to
January 2014 January 2013
GBPm GBPm
Opening total equity 285.6 222.7
Total comprehensive income
- equity holders of the parent
company 525.6 492.7
- non-controlling interest - (0.1)
Shares issued - 0.1
Share buybacks & commitments (311.9) (220.0)
ESOT share purchases & commitments (55.0) (143.5)
Shares issued by ESOT 38.4 44.3
Share option charge 15.8 17.8
Equity awards settled in cash (2.4) -
Tax recognised directly in equity 29.0 19.3
Equity dividends (238.9) (147.7)
(_________) (_________)
Closing total equity 286.2 285.6
(_________) (_________)
UNAUDITED CONSOLIDATED BALANCE SHEET
January 2014 January 2013
Notes GBPm GBPm
ASSETS AND LIABILITIES
Non-current assets
Property, plant & equipment 509.2 537.3
Intangible assets 44.4 44.8
Interests in associates and other
investments 7.9 7.2
Defined benefit pension surplus 70.3 65.6
Other financial assets 6 17.7 30.9
Deferred tax assets 27.0 -
(_________) (_________)
676.5 685.8
Current assets
Inventories 385.6 331.8
Customer and other receivables 808.0 718.1
Other financial assets 6 1.2 21.6
Cash and short term deposits 273.3 136.3
(_________) (_________)
1,468.1 1,207.8
(_________) (_________)
Total assets 2,144.6 1,893.6
(_________) (_________)
Current liabilities
Bank loans and overdrafts (2.6) (5.4)
Corporate bonds - (87.6)
Trade payables and other liabilities (594.0) (537.2)
Dividends payable (74.4) -
Other financial liabilities 6 (83.8) (87.5)
Current tax liabilities (79.7) (98.3)
(_________) (_________)
(834.5) (816.0)
Non-current liabilities
Corporate bonds (800.8) (566.8)
Provisions (8.5) (11.2)
Deferred tax liabilities - (4.0)
Other financial liabilities 6 (0.9) -
Other liabilities 7 (213.7) (210.0)
(_________) (_________)
(1,023.9) (792.0)
(_________) (_________)
Total liabilities (1,858.4) (1,608.0)
(_________) (_________)
NET ASSETS 286.2 285.6
(_________) (_________)
EQUITY
Share capital 15.5 16.1
Share premium account 0.9 0.9
Capital redemption reserve 14.4 13.8
ESOT reserve (196.6) (215.6)
Fair value reserve (16.0) 8.3
Foreign currency translation reserve 5.0 2.0
Other reserves (1,443.8) (1,443.8)
Retained earnings 1,906.9 1,904.0
(_________) (_________)
Shareholders' equity 286.3 285.7
Non-controlling interest (0.1) (0.1)
(_________) (_________)
TOTAL EQUITY 286.2 285.6
(_________) (_________)
UNAUDITED CONSOLIDATED CASH FLOW STATEMENT
Year to Year to
January 2014 January 2013
GBPm GBPm
Cash flows from operating activities
Operating profit 722.8 695.1
Depreciation and amortisation 117.4 117.2
Impairment of property, plant & equipment 2.9 1.8
Loss on disposal of property, plant
& equipment 13.0 2.5
Share option charge less amounts settled
in cash 13.4 17.8
Share of undistributed profit of associates (0.7) (0.1)
Exchange movement 9.3 (3.2)
(Increase)/decrease in inventories (53.8) 40.1
Increase in customer and other receivables (90.9) (21.7)
Increase in trade and other payables 50.7 7.4
Pension contributions less income
statement charge (17.3) (50.2)
(________) (________)
Cash generated from operations 766.8 806.7
Corporation taxes paid (152.0) (147.7)
(________) (________)
Net cash from operating activities 614.8 659.0
(________) (________)
Cash flows from investing activities
Additions to property, plant & equipment (105.3) (81.6)
Movement in capital accruals 2.4 (10.8)
(________) (________)
Payments to acquire property, plant
& equipment (102.9) (92.4)
Net proceeds from disposal of subsidiary - 1.5
Proceeds from sale of property, plant
& equipment 0.4 5.3
Payment of deferred consideration (0.1) (0.1)
(________) (________)
Net cash from investing activities (102.6) (85.7)
(________) (________)
Cash flows from financing activities
Repurchase of own shares (295.8) (241.9)
Purchase of shares by ESOT (97.5) (123.0)
Proceeds from disposal of shares by
ESOT 42.9 43.4
Bonds issued 250.0 -
Bonds redeemed (85.5) -
Interest paid (21.5) (23.8)
Interest received 0.5 2.0
Payment of finance lease liabilities (0.1) (0.1)
Dividends paid (164.8) (147.7)
(________) (________)
Net cash from financing activities (371.8) (491.1)
(________) (________)
Net increase in cash and cash equivalents 140.4 82.2
Opening cash and cash equivalents 130.9 48.8
Effect of exchange rate fluctuations
on cash held (0.6) (0.1)
(________) (________)
Closing cash and cash equivalents (Note
8) 270.7 130.9
(________) (________)
NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
1. Basis of preparation
The results for the financial year are for the 52 weeks to 25
January 2014 (last year 52 weeks to 26 January 2013).
The condensed consolidated financial statements for the year
ended 25 January 2014 have been prepared in accordance with
International Financial Reporting Standards as adopted for use in
the European Union and the accounting policies set out in the NEXT
plc Annual Report and Accounts for the year ended 26 January
2013.
The condensed consolidated financial statements are unaudited
and do not constitute statutory accounts of the Company within the
meaning of Section 434(3) of the Companies Act 2006. Statutory
accounts for the year to January 2013 have been delivered to the
Registrar of Companies. The audit report for those accounts was
unqualified, did not draw attention to any matters by way of
emphasis and did not contain a statement under 498(2) or (3) of the
Companies Act 2006.
Changes to accounting standards
An amendment to IAS 19 Employee Benefits was published in June
2011 and became effective during the current year. This affects the
accounting for defined benefit pension schemes and has been applied
this year. If applied retrospectively, the effect of the amendment
on last year would have been to increase pension costs in the
income statement by GBP2.6 million and to increase actuarial gains
in the statement of comprehensive income by an equivalent amount.
There is no impact on the balance sheet. As the impact is not
material, prior year figures have not been restated and remain as
reported last year.
Various other new accounting standards and amendments were
issued during the year, none of which have had or are expected to
have any significant impact on the Group.
Going concern
The Directors report that, having reviewed current performance
and forecasts, they have a reasonable expectation that the Group
has adequate resources to continue its operations for the
foreseeable future. For this reason, they have continued to adopt
the going concern basis in preparing the financial statements.
2. Segmental analysis
The Group's operating segments under IFRS 8 have been determined
based on the management accounts reviewed by the Board. The
performance of operating segments is assessed on profits before
interest and tax, excluding equity settled share option charges
recognised under IFRS 2 Share Based Payment and unrealised foreign
exchange gains or losses on derivative instruments which do not
qualify for hedge accounting. The activities, products and services
of the operating segments are detailed on page 3 of the 2013 Annual
Report. The Property Management segment holds properties and
property leases which are sub-let to other segments and external
parties.
External revenue Internal revenue Total revenue
Year to January 2014 2013 2014 2013 2014 2013
GBPm GBPm GBPm GBPm GBPm GBPm
NEXT Retail 2,227.6 2,190.9 9.8 6.0 2,237.4 2,196.9
NEXT Directory 1,341.0 1,192.6 5.3 3.7 1,346.3 1,196.3
NEXT International Retail 85.6 77.7 - - 85.6 77.7
NEXT Sourcing 11.0 8.8 560.2 498.3 571.2 507.1
(__________) (__________) (__________) (__________) (__________) (__________)
3,665.2 3,470.0 575.3 508.0 4,240.5 3,978.0
Lipsy 62.9 58.1 1.9 0.5 64.8 58.6
Property Management 4.8 20.3 192.9 192.0 197.7 212.3
(__________) (__________) (__________) (__________) (__________) (__________)
Total segment revenues 3,732.9 3,548.4 770.1 700.5 4,503.0 4,248.9
Third party distribution 7.1 14.4 - - 7.1 14.4
Eliminations - - (770.1) (700.5) (770.1) (700.5)
(__________) (__________) (__________) (__________) (__________) (__________)
Total 3,740.0 3,562.8 - - 3,740.0 3,562.8
(__________) (__________) (__________) (__________) (__________) (__________)
Year to January Year to January 2013
2014
----------------- ------------------------------------------
Underlying Exceptionals
& total Underlying (Note 3) Total
Segment profit GBPm GBPm GBPm GBPm
NEXT Retail 347.7 331.1 - 331.1
NEXT Directory 358.5 302.1 - 302.1
NEXT International Retail 12.1 8.4 - 8.4
NEXT Sourcing 34.1 30.8 - 30.8
(_________) (_________) (_________) (_________)
752.4 672.4 - 672.4
Lipsy 2.7 2.0 - 2.0
Property Management 1.8 3.5 9.1 12.6
(_________) (_________) (_________) (_________)
Total segment profit 756.9 677.9 9.1 687.0
Central costs and other (14.9) (13.9) 35.8 21.9
Share option charge (15.8) (17.8) - (17.8)
Unrealised foreign exchange (5.9) 3.4 - 3.4
(_________) (_________) (_________) (_________)
Trading profit 720.3 649.6 44.9 694.5
Share of results of associates 2.5 0.6 - 0.6
Finance income 0.7 0.4 - 0.4
Finance costs (28.3) (29.0) - (29.0)
(_________) (_________) (_________) (_________)
Profit before tax 695.2 621.6 44.9 666.5
(_________) (_________) (_________) (_________)
3. Exceptional items
Year to Year to
January 2014 January 2013
Footnote GBPm GBPm
Pension credit (a) - 42.1
Pension charge (b) - (6.3)
Sale of property development
stock (c) - 9.1
_______ _______
- 44.9
Associated tax charge - (9.4)
_______ _______
- 35.5
_______ _______
There were no exceptional items in the current year. Last year's
exceptional items were as follows:
(a) The Group reviewed the operation of the defined benefit section
of its pension plan. From November 2012, the future accrual of
benefits for remaining employee members is based on pensionable
earnings at that time, rather than final earnings. This change
gave rise to a one-off accounting gain of GBP42.1m last year.
(b) A tranche of pension payments were subject to a buy-in arrangement
in 2012. The contract also allows for the buy-in to be converted
to a buy-out and steps are being taken to proceed on this basis.
Accordingly, the transaction was accounted for as a settlement,
with the GBP6.3m accounting charge presented in the income statement
as an exceptional item.
(c) The Group sold its last remaining stock from its property development
activities for GBP15.0m last year which had a book value of GBP5.9m.
The GBP9.1m gain is presented as an exceptional item because of
its size and non-recurring nature.
4. Earnings per share
Year to Year to
January 2014 January 2013
Basic earnings per share 366.1p 320.1p
Underlying basic earnings per share 366.1p 297.7p
---------------------------------------- -------------- --------------
Diluted earnings per share 355.6p 311.7p
Underlying diluted earnings per
share 355.6p 289.9p
---------------------------------------- -------------- --------------
Fully diluted earnings per share 347.1p 301.9p
Underlying fully diluted earnings
per share 347.1p 280.8p
---------------------------------------- -------------- --------------
Basic earnings per share is based on the profit for the year
attributable to the equity holders of the parent company and the
weighted average number of shares ranking for dividend less the
weighted average number of shares held by the ESOT during the
period.
Underlying earnings per share is based on profit before the
exceptional items described in Note 3.
Diluted earnings per share is based on the weighted average
number of shares used for the calculation of basic earnings per
share as increased by the dilutive effect of potential ordinary
shares. Dilutive shares arise from employee share option schemes
where the exercise price is less than the average market price of
the Company's ordinary shares during the period. Their dilutive
effect is calculated on the basis of the equivalent number of
nil-cost options. Where the option price is above the average
market price, the option is not dilutive and is excluded from the
diluted EPS calculation. There were no such share options in the
current year (2013: nil).
Fully diluted earnings per share is based on the weighted
average number of shares used for the calculation of basic earnings
per share, increased by the weighted average total employee share
options outstanding during the period. Fully diluted earnings per
share is used for the purposes of the Share Matching Plan.
The table below shows the key variables used in the earnings per
share calculations:
Year to Year to
January January
2014 2013
GBPm GBPm
Profit after tax attributable to equity holders
of the parent company 553.2 508.7
Less exceptional items (see Note 3) - (35.5)
(________) (________)
Total underlying profit (for underlying EPS) 553.2 473.2
(________) (________)
Weighted average number of shares (millions):
Weighted average shares in issue 157.9 164.9
Weighted average shares held by ESOT (6.8) (6.0)
(________) (________)
Weighted average shares for basic EPS 151.1 158.9
Weighted average dilutive potential shares 4.5 4.3
(________) (________)
Weighted average shares for diluted EPS 155.6 163.2
(________) (________)
Weighted average shares for basic EPS 151.1 158.9
Weighted average total share options outstanding 8.3 9.6
(________) (________)
Weighted average shares for fully diluted
EPS 159.4 168.5
(________) (________)
5. Share buybacks and ESOT shares
Movements in the Company's issued share capital are shown in the
table below:
Ordinary shares Cost
(no.) GBPm
Shares in issue at 26 January
2013 161,234,237
Shares purchased for cancellation (6,201,920) 295.8
(________________) (___________)
Shares in issue at 25 January
2014 155,032,317
(________________)
In addition, movements in NEXT plc shares held by the NEXT Employee
Share Ownership Trust (ESOT) were as follows:
Cost/
Ordinary shares (proceeds)
(no.) GBPm
Shares held by ESOT at 26 January
2013 6,531,837
Shares purchased by ESOT 2,136,085 96.0
Shares issued by ESOT (2,477,175) (42.9)
(________________) (___________)
Shares held by ESOT at 25 January
2014 6,190,747
(________________)
The cost of shares purchased differs slightly from the figures
shown in the cashflow statement due to the timing of settlements
around the January 2013 year end.
6. Other financial assets and liabilities
Other financial assets and other financial liabilities include
the fair value of derivative contracts which the Group uses to
manage its foreign currency and interest rate risks.
Other current financial liabilities at 25 January 2014 also
included GBP58.4m (2013: GBP42.3m) arising under an irrevocable
closed season buyback agreement for the purchase of the Company's
own shares, and net liabilities of GBPnil (2013: GBP41.0m) arising
under contingent purchase contracts for the Company's own shares
entered into by the ESOT. At 19 March 2014, all GBP58.4m of the
January 2014 commitment was unfulfilled and had expired, and will
therefore be credited back to equity.
7. Other non-current liabilities
Other non-current liabilities relate to the long term element of
property lease incentives received and liabilities which are not
expected to be settled within one year.
8. Analysis of net debt
Other
January Cash non-cash January
2013 Flow changes 2014
GBPm GBPm GBPm GBPm
Cash and short term deposits 136.3 273.3
Overdrafts (5.4) (2.6)
(________) (________)
Cash and cash equivalents 130.9 140.4 (0.6) 270.7
Corporate bonds (654.4) (164.5) 18.1 (800.8)
Fair value hedges of corporate
bonds 31.3 - (18.3) 13.0
Finance leases (0.4) 0.1 - (0.3)
(________) (________) (________) (________)
Total net debt (492.6) (24.0) (0.8) (517.4)
(________) (________) (________) (________)
9. Final dividend and AGM
It is intended that the recommended final dividend of 93p per
share will be paid on 1 August 2014 to shareholders registered on
11 July 2014. The Annual General Meeting will be held at the
Leicester Marriott Hotel, Smith Way, Grove Park, Leicester, LE19
1SW on Thursday 15 May 2014. The Annual Report and Accounts will be
sent to shareholders on 11 April 2014 and copies will be available
from the Company's registered office: Desford Road, Enderby,
Leicester, LE19 4AT and on the Company's website at
www.nextplc.co.uk.
This statement, the full text of the Stock Exchange announcement
and the results presentation can be found on the Company's website
at www.nextplc.co.uk.
Certain statements which appear in a number of places throughout
this announcement may constitute "forward looking statements" which
are all matters that are not historical facts, including
anticipated financial and operational performance, business
prospects and similar matters. These forward looking statements are
identifiable by words such as "aim", "anticipate", "believe",
"budget", "estimate", "expect", "forecast", "intend", "plan",
"project" and similar expressions. These forward looking statements
reflect NEXT's current expectations concerning future events and
actual results may differ materially from current expectations or
historical results. Any such forward looking statements are subject
to risks and uncertainties, including but not limited to those
matters highlighted in the Chief Executive's review; failure by
NEXT to accurately predict customer fashion preferences; decline in
the demand for merchandise offered by NEXT; competitive influences;
changes in level of store traffic or consumer spending habits;
effectiveness of NEXT's brand awareness and marketing programmes;
general economic conditions or a downturn in the retail industry;
the inability of NEXT to successfully implement relocation or
expansion of existing stores; lack of sufficient consumer interest
in NEXT Directory; acts of war or terrorism worldwide; work
stoppages, slowdowns or strikes; and changes in financial and
equity markets. These forward looking statements do not amount to
any representation that they will be achieved as they involve risks
and uncertainties and relate to events and depend upon
circumstances which may or may not occur in the future and there
can be no guarantee of future performance. Undue reliance should
not be placed on forward looking statements which speak only as of
the date of this document. NEXT does not undertake any obligation
to publicly update or revise forward looking statements, whether as
a result of new information, future events or otherwise, except to
the extent legally required.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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