NEXT (NXT) claims to have had a solid year with total group sales up by an unexciting 3%. Retail sales are the worry with a meagre rise of only 1.1% compared to 8% in online and catalogue. What is even more worrying is that NEXT brand is not doing well. In the UK NEXT brand sales rose by only 2.3% but LABEL (ie. third party brands ) surged by 21.2%
Profit before tax rose by 5% which has enabled full year dividends to to be increased by 5.3%, matching underlying earnings per share which were up by 5.4%.
As one would expect from one of our world beating industries, happier news comes from Churchill China (CHH) which is raising its final dividend by 15% after a 16% jump in profit before tax, thanks CHH says to its excellence in design, quality and customer service. Not many companies even try to claim that.
Adnams (ADB) is raising its final dividend by 5.9% after a good second half helped to make up for the first half’s 3% fall in turnoverand leaving the full year down by just 0.5%. Operating profit rose by 7.3%. Adnams does not envisage selling any more of its pubs, after six last year, 1 this year and one more still to comer.
The beer market is still not good with competition from computer games and in home entertainment plus fast food and casual dining. In fact the take home market is now the strongest part of the beer market and Adnams is trying to take full advantage of this with its own shops and outlets.
Renishaw (RSW) announces that it is unlikely to repeat last years trading levels contrary to what was expected at the time of the half year’s results.
Mitie (MTO) continues the sombre note with news that revenue in the second half will be below current expectations