LONDON (Alliance News) - Next PLC Thursday reported a sixth consecutive year of annual pretax profit growth, as sales increased in its stores and particularly online, and it predicted another year of growth this year as it continued with its strategy of focusing on its products and its profitability.
Next, which last year overtook big rival Marks and Spencer Group PLC to become the UK's most profitable clothes retailer, reported a pretax profit of GBP794.8 million for the year to January 31, up from GBP695.2 million a year earlier, while excluding a GBP12.6 million gain that included a profit on the sale of its investment in Cotton Traders, pretax profit rose to GBP782.2 million from GBP695.2 million.
Revenue grew 6.9% to GBP4.00 billion, from GBP3.74 billion, with Directory sales up 12.1% and retail sales up 4.8%.
The British fashion retailer raised its total full year ordinary dividend by 16% to 150 pence from 129 pence; the sixth consecutive year that it has grown by 15% or more.
Next expects to generate around GBP360 million surplus cash in the year ahead to return to shareholders. It already paid a special dividend of GBP74 million in February and has committed to a further GBP90 million which will be paid in May.
It also expects sales to grow between 1.5% and 5.5% for the full year 2016, and pretax profit to be between GBP785 million and GBP835 million. Ordinary dividend yield is expected to rise 2.1%, and special dividend yield 3.3%.
"2015 will bring new challenges and opportunities. Our strategy will remain the same, focused on our products, our profitability and returning cash to our shareholders," Chairman John Barton said in a statement.
By Karolina Kaminska; karolinakaminska@alliancenews.com @KarolinaAllNews
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Next (NXT)