LONDON (Alliance News) - 20,000 employees at UK home and clothing retailer Next PLC will receive a share of Chief Executive Officer Simon Wolfson's share bonus, the company said this week.
Next's Chief Executive has gifted just under a GBP4 million bonus to full-time and part-time employees who worked at the retailer during the three year period between April 2011 and April 2014.
The pay averages at about GBP200 each.
In a letter sent to the company's employees this week, Chief Executive Simon Wolfson said that the sum will be paid as a one-off bonus in May with their pay.
"I hope you will accept this bonus as a personal gesture of thanks and appreciation for all your hard work and dedication to NEXT through testing economic times," he wrote.
The retailer also said that its lowest paid employees, which are retail sales and stock room assistant staff, will get a pay rise by 37 pence an hour as of June 1.
"This pay rise should be seen alongside all the other measures we are taking to improve customer service and we hope that, over coming months, you will help to take NEXT?s service from good to outstanding," he added.
"We have introduced a new bonus scheme, new recruitment processes, more hours available to work on shift market place, and a new appraisal system. We will also be looking at making better use of people?s time by re-allocating hours from quieter to busier times of day as and when vacancies arise."
In the letter, Wolfson wrote that Next has grown its profits per share by 65% over the last three years, and the company?s shares have trebled.
The retailer reported higher profits and revenues for its recent financial year, driven by its online business, and signalled its confidence by raising its dividend by 23%.
For the year ended January 24, revenue excluding VAT increased 5.4% to GBP3.74 billion, up from GBP3.55 billion the prior year, and profits excluding exceptional costs rose 12% to GBP695.2 million, up from GBP621.6 million a year earlier, when excluding a GBP44.9 million profit gain.
Its profits for the year overtook retail rival Marks and Spencer Group PLC, which said it expects to report a pretax profit around the current market consensus of between GBP615 million and GBP620 million.
The retailer said that growth was being driven by its online business, and via a combination of improved pricing, site translations, the acceptance of new domestic currencies and the development of new territories.
Next has been busy developing its online business, by improving its UK delivery services expanding its online product offer and investing in new overseas markets.
Next Directory, the retailer's online and catalogue business, delivered a 12% increase in sales during the year, narrowing the gap with its retail stores, which grew by 1.7%.
Next shares were up 1.6% at 6,570.00 pence per share Thursday afternoon.
By Rowena Harris-Doughty; rowenaharrisdoughty@alliancenews.com; @rharrisdoughty
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Next (NXT)
