Broker snap: Next exceeds expectations

Preliminary results from fashion chain Next were slightly better than Panmure Gordon had been anticipating, with profit before tax coming in at £504.6m versus Panmure's prediction of £497.1m.The final dividend, at 47p, was also a lot more generous than Panmure Gordon's forecast of 41p, and 'shows management's confidence in the year to come.'Next found other ways to exceed the broker's expectations with 'gross margins and operating margins in Retail and Directory better than forecast,' while net debt at £400m was way below Panmure Gordon's prediction of £515m, which 'bodes well for further share buybacls.'The broker is reviewing its forecasts for fiscal 2011 and has retained its 'buy' rating.