Next Regulatory News (NXT)

NEXT plc

25 April 2023

NEXT TOTAL PLATFORM ACCELERATES JOULES TRANSITION AND INCREASES SCOPE OF SERVICES

Over the last year NEXT Technology teams have made significant progress in reducing the lead times for the delivery of TOTAL PLATFORM (TP). As a result we now believe Joules can launch its TP site much earlier than expected. The launch date, which was proposed for March 2024, is now planned for October 2023.

To date, TOTAL PLATFORM has focussed on providing website, warehousing, distribution, contact centre, online advertising and retail services. The scope of the planned services for Joules will be significantly wider. In addition to existing TP services, Joules will use the following NEXT systems:

● Product systems, encompassing stock planning, budgeting, contract management, progressing, imports and inbound administration. This will enable them to take advantage of the Group's inbound freight and duty arrangements. 

● Finance, Payments and Accounting systems including accounts payable services, management information, profitability analysis and more.

● HR systems which will, in time, include store man-hour rota and planning systems and payroll.

At this stage, NEXT plans to provide all these services to Joules on a cost-plus basis.

Joules will remain an independent company (74% owned by NEXT) with its own Board and management team. However the team, led by founder Tom Joule, will be entirely focused on product, marketing and brand development. The functions that will continue to be wholly managed by the Joules teams are as follows:

● Design, buying, garment-technology and merchandising

● Brand marketing, styling of photography, branding, social media and PR, shows and events

● Website content and look-and-feel

● Wholesale and sales through third parties

We had always intended that TOTAL PLATFORM would deliver material cost savings to Joules. Following the decision to deliver much broader services to Joules, we are now planning for those savings to be significantly greater than originally anticipated. The full benefit of these savings will not be felt until the beginning of 2024 so are unlikely to materially affect the current year's profit of the NEXT Group.

As a result of these changes, a number of tasks performed by Joules personnel will be absorbed into NEXT teams or no longer be needed. Joules is in the process of consulting with colleagues to let them know how they will be affected. Where roles are no longer required, NEXT will be working with those affected to ensure that they are considered for any suitable vacancies at NEXT, whose Head Office is located close to Joules' headquarters in Market Harborough. It is anticipated that those remaining with Joules (i.e. the Senior management, Product and Marketing teams) will continue to work from Joules' existing offices.

NEXT plc contact: Alistair Mackinnon‐Musson, Rowbell PR next@rowbellpr.comTel: 020 7717 5239