Income Statement 2014 2013 £m m (underl erlyi ying) g) Full Price Revenue 3,740 3,548 + 5.4% + 6.7% Operating profit 723 650 + 11.2% + 11.2% Interest (28) (28) Profit before tax 695 622 Taxation (142) (149) Profit after tax 553 473 + 16.9% + 16.9% EPS (underlying) 366.1p 297.7p + 23% 129p 105p + 23% Dividend per share
Cash Flow £m £m 2014 2013 Profit before tax (underlying) 695 622 Depreciation / disposals 134 127 Capital expenditure (105) (82) Working capital / other (80) 33 Dividends paid (165) (148) Tax paid (152) (148) ESOT (55) (80) Share buybacks (296) (242) Net cash flow (24) 82
Cash Flow £m £m 2014 2013 Profit before tax (underlying) 695 622 Depreciation / disposals 134 127 Capital expenditure (105) (82) Working capital / other (80) Jan n 2015(e (e) 33 Full Year £115m £105m £82m Dividends paid (165) (148) Tax paid (152) (148) £38m £22m Warehouse & other ESOT (55) (80) £13m £5m £21m Refurbishments Share buybacks (296) (242) £72m £70m £10m New & extended Net cash flow (24) 82 £51m
Cash Flow £m £m 2014 2013 Profit before tax (underlying) 695 622 Depreciation / disposals 134 127 Capital expenditure (105) (82) Working capital / other (80) Jan n 2015(e (e) 33 Full Year £115m Dividends paid (165) (148) HQ Tax paid (152) (148) £6m £38m Warehouse & other Warehouse ESOT (55) £18m (80) Systems £5m Refurbishments £14m Share buybacks (296) (242) £72m New & extended Net cash flow (24) 82
Balance Sheet £m £m 2014 2013 Fixed assets 517 545 Goodwill and intangibles 44 45 Stock 386 332 Debtors 808 718 Creditors (869) (859) Dividend payable (74) - Pension surplus 70 66 Derivatives (21) 17 Buyback / ESOT commitment (58) (85) Net debt (517) (493) Net assets 286 286
Balance Sheet £m £m 2014 2013 Fixed assets 517 545 Goodwill and intangibles 44 45 Stock 386 332 + 16.2% Debtors 808 718 + 12.5% Creditors (869) (859) Directory Debtors Dividend payable (74) - Jan an 2014 14 Jan an 2013 13 Pension surplus 70 66 £682m +13% £601m Derivatives (21) 17 Buyback / ESOT commitment (58) (85) Credit Sales Increase Net debt (517) (493) 14 +12% Aug 2013 Jan an 2014 13 Net assets 286 286
Full Year Debt, Cash Flow and Buybacks 700 Jan 2013 Jan 2014 600 517 493 489 500 Extra ESOT £28m Share buybacks 400 £296m 300 Operational £300m 200 193 £m
Full Year Debt, Cash Flow and Buybacks 700 Jan 2014 Jan 2015(e) 600 517 517 500 Special 367 dividends/ 400 buybacks £150m Special Operational 300 dividends £300m+ paid/declared £150m 200 217 £m
Equivalent Rate of Return (ERR) ERR: Return required from an alternative investment to produce the same earnings enhancement as the proposed buyback.
Equivalent Rate of Return (ERR) 9.5% PBT £750m(e) 9% PBT £695m 8.5% 8% 7.5% 7% £58 £62.45 6.5% 6% £54 £56 £58 £60 £62 £64 £66 £68 Shar are e Pr Price ice
Camberley Retail
Retail : Sales Analysis £m £m 2014 2013 Total Full Price Markdown Revenue (statutory sales) 2,227.6 2,190.9 + 1.7% + 3% - 11% Operating profit 347.7 331.1 Sales from new space Average net space growth (sq. ft.) 4.2% Sales growth from net space 3.1% Return on space 72%
Retail : Profit Analysis £m £m 2014 2013 Full Price Markdown Revenue (statutory sales) 2,227.6 2,190.9 + 1.7% + 3% - 11% Operating profit 347.7 331.1 + 5.0% 15.6% 15.1% % to revenue Lower stock Margin movement for Sale Markdown + 0.8% -15% Bought-in gross margin + 0.0% Freight, fabric & stock loss + 0.5% Achieved gross margin + 1.3%
Retail : Profit Analysis £m £m 2014 2013 Revenue (statutory sales) 2,227.6 2,190.9 + 1.7% Operating profit 347.7 331.1 + 5.0% 15.6% 15.1% % to revenue Margin movement Achieved gross margin + 1.3% Store payroll + 0.1% Store occupancy - 0.7% Other overheads - 0.2% Margin movement + 0.5%
Directory
Directory : Sales Analysis 2014 £m £m 2013 Total Full Price Markdown Revenue (statutory sales) 1,341.0 1,192.6 + 12.4% + 14% 0% Operating profit 358.5 302.1 Sales analysis Contribution to growth UK + 8.5% International + 3.9% Sales growth + 12.4%
Directory : Sales Analysis 2014 £m £m 2013 Revenue (statutory sales) 1,341.0 1,192.6 + 12.4% Operating profit 358.5 302.1 Increase on Contribution to Sales drivers last year customer growth UK credit 2,800k + 100k 3% UK cash 630k + 140k 4% International 270k + 120k 4% Active customers 3.7m + 360k + 11%
Directory : Profit Analysis 2014 £m £m 2013 Full Price Markdown Revenue (statutory sales) 1,341.0 1,192.6 + 12.4% + 14% 0% Operating profit 358.5 302.1 + 18.7% 26.7% 25.3% % to revenue Lower stock Margin movement for Sale Markdown + 1.8% -9% Bought-in gross margin + 0.2% Freight, fabric and stock loss + 0.2% Achieved gross margin + 2.2%
Directory : Profit Analysis 2014 £m £m 2013 Revenue (statutory sales) 1,341.0 1,192.6 + 12.4% Operating profit 358.5 302.1 + 18.7% 26.7% 25.3% % to revenue Margin movement Achieved gross margin + 2.2% Catalogue production + 0.2% Warehouse and distribution - 0.5% Service charge and bad debt - 0.4% Central overheads - 0.1% Margin movement + 1.4%
NEXT PLC Objectives Operational Financial Develop the Next brand To deliver: Grow retail space Long term, Develop our online business Sustainable growth in Improve service Total Shareholder Returns Control costs = EPS growth + dividend yield
Ipswich Retail Space
2013/14 Retail Space 2013/14 sq. ft. Stores Jan 2013 540 +280,000 New 11 Resites 8 Home Fashion 40% Extensions 13 60% Closed -10 Stores Jan 2014 541
2013/14 Retail Space Total sq. ft. Stores Jan 2013 540 7,000,000 New 11 Home Resites 8 25% Fashion Extensions 13 75% Closed -10 Stores Jan 2014 541
2013/14 Retail Space New space performance * Sales Payback Store Company avg. v target (months) profit % store profit % Fashion + 4.4% 19 22% 23% Large Home format + 3.5% 22 21% 20% Total + 4.3% 19 22% 23% * Forecast for stores opened or extended in the last 12 months
Pipeline Sq. Ft. 2014 - 2016 Net of closures 400k 360k 350k Current guidance 1.1m 40% large store format 2014/15 2015/16 2016/17
2014/15 Large Store Openings York April Hedge End August Maidstone December
2006 Uniform lighting Tiled ceiling £127 /sq. ft. @ 2013 prices Monotone walls £149 /sq. ft Dull fixtures Bland floor
2013/14 2013/14 £141 /sq. ft.
2013/14 £141 /sq. ft.
Product
10 Year Average Temperature 4 0 12 0 16 0 8 0 Phase Phase Phase Phase Phase Phase Phase Phase Phase 1 2 3 4 5 1 2 3 4 Autumn/Winter Spring/Summer
More appropriate stock More change/newness Spring Spring Summer Summer Summer Autumn Autumn Winter Winter 1 2 1 2 3 1 2 1 2 Spring Summer Autumn Winter
Service
% rating service ‘outstanding/very good/good’ Source: Simpson Carpenter, June 2013 Retailer Retailer 95% Retailer Retailer 92% Retailer Next 88% 86% 85% 82% Retailer Retailer Retailer Retailer Retailer 77% 76% 75% 75% 75% 1 2 3 4 5 6 7 8 9 10 11
% rating service ‘outstanding/very good’ Retailer Source: Simpson Carpenter, June 2013 68% Retailer 62% Retailer 57% Retailer Retailer 54% 53% Next 46% Retailer Retailer Retailer 40% 39% Retailer Retailer 39% 35% 35% 1 2 3 4 5 6 7 8 9 10 11
Change For Better Service Recruit for Attitude New Recruitment Process Train for Skill Four Star Appraisal System Shift Market Place
Online International
International 2011/12 2012/13 2013/14 2014/15(e) £150m+ £101m £54m £33m Profit £7m £10m £18m £27m Margin 21% 19% 18% 18%
International 2013/14 2011/12 2012/13 2013/14 2014/15(e) 28 price reductions 5 currency conversions £150m+ Austria Kazakhstan Qatar Hong Kong HK$ Belgium Kuwait Russia Israel ILS Chile Luxembourg Singapore Kazakhstan KZT Czech Republic Malaysia South Africa South Africa ZAR £101m France Mexico Spain Taiwan NT$ Germany Netherlands Sweden 1 new language £54m Gibraltar New Zealand Thailand Hong Kong Norway UAE £33m Taiwan Trad aditiona tional l Chines nese India Pakistan Japan Poland Profit £7m £10m £18m 1 new payment type £27m Margin 21% 19% 18% 18%
International 2014/15 2011/12 2012/13 2013/14 2014/15(e) 11 new territories 11 currency conversions 6 new languages 5 price reductions £150m+ Azerbaijan Bulgaria BGN Arabic Belgium Belarus Croatia HRK French Luxembourg Brazil Denmark DKK Hebrew Netherlands China India INR Polish Slovakia £101m Cyprus Lithuania LTL Mainland Chinese Switzerland Egypt Qatar QAR Spanish Lebanon Romania ROL £54m Libya Singapore SG$ 2 new payment types £33m Malta Switzerland SFR Oman Turkey TRL Profit £7m £10m £18m £27m Saudi Arabia UAE AED Margin 21% 19% 18% 18%
Outlook • The Economy • Full Year Sales & Profit
Recommend
More recommend
