NEXT PLC RESULTS/media/Files/N/Next-PLC... · Operating profit 73.8 59.6 + 23.6% Revenue 371.8...
Transcript of NEXT PLC RESULTS/media/Files/N/Next-PLC... · Operating profit 73.8 59.6 + 23.6% Revenue 371.8...
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NEXT PLC RESULTSHALF YEAR ENDED JULY 2007
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+ 13.3%
Income Statement20062007£m
53.3p65.2pEPS
124.0141.7Profit after tax
(54.9)(56.5)Taxation178.9198.2Profit before tax
(12.8)(14.5)Interest191.7212.7Operating profit
1,510.51,538.0Revenue + 1.8%
+ 10.8%
+ 22.3%
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Income Statement20062007£m
53.3p65.2pEPS
124.0141.7Profit after tax
(54.9)(56.5)Taxation178.9198.2Profit before tax
(12.8)(14.5)Interest191.7212.7Operating profit
1,510.51,538.0Revenue
+ 10.8%
+ 14.3%
Tax Rate28.5%
Tax Rate30.7%
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339308Stocks
Balance Sheet20062007£m
(95)(87)Net liabilities
(660)(618)Net borrowings(113)(93)Contingent buybacks(85)(28)Pension deficit
(668)(836)Creditors519560Debtors339308Stocks
3636Goodwill537584Fixed assets
- 9%
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20062007£m
(95)(87)Net liabilities
(660)(616)Net borrowings(113)(93)Contingent buybacks(85)(28)Pension deficit
(668)(838)Creditors519560Debtors339308Stocks
3636Goodwill537584Fixed assets
Balance Sheet
+ 8%
Directory Debtors
July 2006 £382m
July 2007 £393m +2.9%
Sales +3.5%
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20062007£m
(95)(87)Net liabilities
(660)(616)Net borrowings(113)(93)Contingent buybacks(85)(28)Pension deficit
(668)(838)Creditors519560Debtors339308Stocks
3636Goodwill537584Fixed assets
Balance Sheet
Debt Growth
0
5
10
15
20
25
Jan-05 Jul-05 Jan-06 Jul-06 Jan-07 Jul-07
Debt
Sales
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20062007£m
(95)(87)Net liabilities
(660)(616)Net borrowings(113)(93)Contingent buybacks(85)(28)Pension deficit
(668)(838)Creditors519560Debtors339308Stocks
3636Goodwill537584Fixed assets
Balance Sheet
+ 25%(668)(836)Creditors
Share buyback (46)
Capital contribution (38)
Tax (55)
Other (29)
July 07 (836)
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20062007£m
(296)(174)Net cash flow
(279)(245)Share buybacks(59)(47)Tax paid(70)(74)Dividends paid(46)31Working capital / Other(71)(90)Capital expenditure5053Depreciation / Disposals
179198Profit before tax
Cash Flow
(17)71Operational cash flow
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20062007£m
(296)(174)Net cash flow
(279)(245)Share buybacks(59)(47)Tax paid(70)(74)Dividends paid(46)31Working capital / Other(71)(90)Capital expenditure5053Depreciation / Disposals
179198Profit before tax
Cash Flow
July 07
£27m
Stores£50m
Warehouse& other£40m
£90m
July 06
£44m
£71m
Cash Flow
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20062007£m
(296)(174)Net cash flow
(279)(245)Share buybacks(59)(47)Tax paid(70)(74)Dividends paid(46)31Working capital / Other(71)(90)Capital expenditure5053Depreciation / Disposals
179198Profit before tax
Cash Flow
Jan 08(E)
£180m
Jan 07
£140mWarehouse &other
£66m
Stores £114m
New £76m
£51m
New £79m
Refit £10m
Stores £89m
Refit £38m
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20062007£m
(296)(174)Net cash flow
(279)(245)Share buybacks(59)(47)Tax paid(70)(74)Dividends paid(46)31Working capital / Other(71)(90)Capital expenditure5053Depreciation / Disposals
179198Profit before tax
Cash Flow
Directory Debtors 29
ESOT 25Pension 13
Other 10Change 77
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20062007£m
(296)(174)Net cash flow
(279)(245)Share buybacks(59)(47)Tax paid(70)(74)Dividends paid(46)31Working capital / Other(71)(90)Capital expenditure5053Depreciation / Disposals
179198Profit before tax
Cash Flow
(17)71Operational cash flow
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Share buybacks
227.0Shares January 2007
£mShares (m)
3888.2%(18.5)
451.0%(2.1)Committed (contingent)481.0%(2.4)Purchased to 11 Sep
2956.2%(14.0)Purchased Feb-July
208.5Reduced Share Capital
Total
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FINANCIAL PERFORMANCE HALF YEAR ENDED JULY 2007
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Retail
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Retail : Sales Analysis20062007£m
10.8%10.9%% to revenue
+ 1.3%111.1112.5Operating profit
- 0.1%1,029.71,028.7Revenue
RETAIL
DIRECTORY
OVERSEAS
SOURCING
VENTURA
OTHER
Retail Sales Analysis Net sales from new space + 4.7%Underlying mainline LFL - 3.6%
Next Clearance impact - 1.2%
Total Sales - 0.1%
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Retail : Profit Analysis20062007£m
10.8%10.9%% to revenue
+ 1.3%111.1112.5Operating profit
- 0.1%1,029.71,028.7Revenue
RETAIL
DIRECTORY
OVERSEAS
SOURCING
VENTURA
OTHER
Retail Margin Movement Achieved gross margin + 2.3%
Bought in margin + 1.4%
VAT provision release + 0.4%
Fabric stock provision + 0.4%
Markdowns / other + 0.1%
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Retail : Profit Analysis20062007£m
10.8%10.9%% to revenue
+ 1.3%111.1112.5Operating profit
- 0.1%1,029.71,028.7Revenue
RETAIL
DIRECTORY
OVERSEAS
SOURCING
VENTURA
OTHER
Branch payroll - 0.4%Occupancy - 1.0%
Central overheads - 0.8%
Retail Margin Movement Achieved gross margin + 2.3%
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Retail :RETAIL
DIRECTORY
OVERSEAS
SOURCING
VENTURA
OTHER
Sales vs Target + 2.1%
Forecast payback 17 months
New space for 2007(E) 420k sq ft
AW07 new HOME stores 2 Stores
Space ExpansionStores Sq ft (000’s)
January 2007 480 4,823New 11 100Re-sites (6) 34Closed (3) (10)
July 2007 488 4,947 + 2.6%
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Directory
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20062007£m
16.6%19.8%% to revenue
+ 23.6%59.673.8Operating profit
+ 3.5%359.4371.8Revenue
RETAIL
DIRECTORY
OVERSEAS
SOURCING
VENTURA
OTHER
Sales Drivers 2007 2006
Active customers 2.16m 2.14m + 0.9%Printed pages 1,684 1,476 + 14.1%
Directory : Sales Analysis
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Directory20062007£m
16.6%19.8%% to revenue
+ 23.6%59.673.8Operating profit
+ 3.5%359.4371.8Revenue
RETAIL
DIRECTORY
OVERSEAS
SOURCING
VENTURA
OTHER
Directory Margin MovementAchieved gross margin + 0.6%
: Profit Analysis
Bought in margin + 1.6%
Markdowns and slippage - 1.0%
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Directory20062007£m
16.6%19.8%% to revenue
+ 23.6%59.673.8Operating profit
+ 3.5%359.4371.8Revenue
RETAIL
DIRECTORY
OVERSEAS
SOURCING
VENTURA
OTHER
Directory Margin MovementAchieved gross margin + 0.6%
Service charge + 0.9%Bad debt + 3.3%
Central overheads - 1.6%
: Profit Analysis
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Overseas
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Overseas20062007£m
11.3%13.2%% to revenue
+ 34.5%2.53.4Operating profit
+ 15.0%22.025.3Revenue
RETAIL
DIRECTORY
OVERSEAS
SOURCING
VENTURA
OTHER
Franchise partner sales +25%
Profit now more in line with sales
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OverseasRETAIL
DIRECTORY
OVERSEAS
SOURCING
VENTURA
OTHER
-1 26China / Hong Kong
13 14 1520Russia38 37 3737Japan & other Far East
129 142 156 188Total-1 22Pakistan-1 22Jordan / Egypt--13Macau / Malaysia / Taiwan---4Greece / Netherlands / Sweden
-5 69Ukraine / Poland / RomaniaNew Territories
2 3 79India10 10 1112Rest of Europe5 5 77Turkey9 11 1114Czech / Slovakia / Hungary
52 54 5563Middle EastExisting Territories
AW06SS07AW072008
: Expansion plans
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Sourcing20062007£m
+ 5.2%15.616.4Operating profit
- 8.1%307.9282.9Total revenue
RETAIL
DIRECTORY
OVERSEAS
SOURCING
VENTURA
OTHER
Dollar Sales +0.5%
Profits up due to action on costs
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Ventura
+ 13.4%9.711.0Operating profit
20062007£m
10.5%10.5%% to revenue
+ 12.8%92.7104.6Revenue
RETAIL
DIRECTORY
OVERSEAS
SOURCING
VENTURA
OTHER
Expected full year profits of £23m
Prospecting for warehouse/distribution clients
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Other
0.70.5Associates
(2.8)(0.5)Pensions
(3.1)(4.3)Other
20062007£m
(2.2)(2.1)Total
3.02.2Property
RETAIL
DIRECTORY
OVERSEAS
SOURCING
VENTURA
OTHER
Pensions full year expected £(1)m
Last full year £(0.8)m
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Current Trade
Next Brand - 2.9%
Retail total sales - 2.9%
Mainline LFL - 4.8%
Directory - 2.9%
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Outlook
Consumer environment worsening
Ranges, shops, marketing improved
Budgeting Retail LFL -1% to -3.5%
Current P&L forecasts in line with market
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PRIORITIES FOR AW07
Managing DirectoryRevitalising the Brand
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Managing DirectoryCustomer recruitment to slow
• Increasing competition online
• Worsening consumer environment
Jan 93 Jan 97 Jan 070%
20%
10%
__ Consumer credit__ Earnings
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+ 18%Total+ 40%Home+ 8%Childrens+ 3%Mens
+ 10%Womens
AW Page GrowthCategory
Managing DirectoryCustomer recruitment to slow
• Increasing competition online
• Worsening consumer environment
• Tighter control of new accounts
Next won’t chase unprofitable sales
Focus on new product
• Expand Home business
• Leverage clicks & infrastructure
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1.1m hits per week
2.2m customers
55% internet pn
>500,000 pcls pw
24 hr delivery
+ 18%Total+ 40%Home+ 8%Childrens+ 3%Mens
+ 10%Womens
AW Page GrowthCategory
Managing DirectoryCustomer recruitment to slow
• Increasing competition online
• Worsening consumer environment
• Tighter control of new accounts
Next won’t chase unprofitable sales
Focus new product
• Leverage clicks & infrastructure
• Expand Home Business
• The Brand Directory
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Younger
Non-competing
Opportunity to recruit to Directory
Managing Directory
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ExcitingRevitalising The Brand
Beautifully designed
Excellent quality
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Priorities for AW07
ProductMarketing
Shop fit
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Product
Product
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Product
newnessMore
Back new trends….with conviction
in depth
Newness not high fashion
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Product
Womenswearnewness
Percentage
2007 2006 % Inc.
August 76% 60% +27%
October 52% 36% +44%
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Product
qualityMore on
priceLess on
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Product
-3%-2%
+6%
-4.00%
-2.00%
0.00%
2.00%
4.00%
6.00%
8.00%
Average Selling Price %Var
AW06 SS06 AW07(E)
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Product
No price increases
Maintained price starters
Change from mix
Introduced Signature
Average Selling Price %Var
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Product
3% Womens Clothing AW07
More in Spring Summer ‘08
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ASP £75
ASP £45
Product
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Marketing
Windows
In store
Press & Billboard
Television
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Press and Billboards
Press 06£0.6m
Press 07£1.7m
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Press and Billboards
Press 06£0.6m
Press 07£1.7m
Outdoor 06£0.8m
Outdoor 07£1.5m
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Windows 2006 - £1.3m
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Windows 2007 - £2.7m
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Instore 2006 - £1.1m
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Instore 2007 - £3.6m
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Television
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Distinctive entrance featureShop fit
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Full height windows
Shop fit
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Stone flooring
Shop fit
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New lighting treatments
New and varied centre floor equipment
Shop fit
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Feature walls
Shop fit
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New Shoe DepartmentsShop fit
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Menswear
Shop fit
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Shop fit: Sales performance
Portfolio + 5% improved performance
Early days for new concept
Not budgeting for better performance
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Sq ft ‘000 New Refits Redec. Total
SS07 163 231 264 658
AW07 369 386 581 1,336
Total 532 617 845 1,994% of portfolio 10% 12% 16% 38%
% of turnover 9% 16% 19% 44%
Cost/sq ft £143 £60 £4
Shop fit: Sales performance
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NEXT PLC RESULTSHALF YEAR ENDED JULY 2007