2011 had been another good year for NEXT where company has experienced record profits, earnings per share and bonus. Company’s approach of branding, product differentiation, low cost products, etc., were the most significant to such good profits in the UK retail market. However, there are various factors that affect retail industry as a whole and influence company’s decision making process. Recession in the global market, inflation, unemployment and limited growth in consumer credit are the major challenges that affect consumer surroundings in the industry. Retailers can’t plan for longer term growth or longer sales as industry is uncertain due to changing pattern in technological advancement, economic condition, social responsibilities etc. Though, NEXT can provide vigorous returns for to shareholders, new prospects of growth and innovative approach for cost control, customer satisfaction, etc., are the key elements that createdemands of the company.
In spite of the competitive retail environment in the UK, NEXT has achieved 18% growth in EPS. In addition, dividend was gone up by 18%. Growth in the NEXT Directory Online was prominent. Despite the NEXT Retail like for like sales decline, company’s brand sales were recorded 0.3% growth over the last year sales.
Increase in the VAT has recorded low sales by 1.4% as the year ending January 2010 was a 53 week year. However, company’s brand sales were actually 3.1% higher after adjusting for this 52 week VAT factor. Continous focus on cost savings has resulted in higher operating profits than sales. Profit before tax was recorded at £551million (up to 9% in the last year).
NEXT continues in delivering strong cash flows, generating £92m of surplus cash after capital expenses, interest, tax and dividends. We expect it will inflow to dual in the year ahead. Excess cash has been used to buy again 10 million shares, and the consolidated effect of cash generation and share buybacks (both this year and last) has been to boost EPS by 7.5%. Dividends have risen in line with EPS, up 18% to 78p per share.
2011是另一个好年景下，公司经历了创纪录的利润，每股收益和红利。品牌，公司的产品差异化，低成本的产品，等等，是最重要的，这么好的利润在英国的零售市场。然而，这是影响零售业作为一个整体，影响公司的决策过程中的各种因素。在全球市场，经济衰退，通货膨胀，失业和消费信贷增长有限，影响了行业中的消费环境所面临的主要挑战。零售商不能计划长期增长或更长的销售由于技术进步，改变模式的行业是不确定的经济条件下，社会责任等。不过，下次可以提供有力的回报给股东，增长和成本控制，创新的方法，新的前景，客户满意度，等，是公司创造需求关键要素。
在英国的零售竞争环境下有怨恨，每股收益达到18%的增长。此外，股息上升18%。在下一个在线目录增长突出。尽管未来零售相似的销售下降，公司的品牌销售均录得0.3%的增长在去年的销售。
在增值税的增加已记录的低1.4%的销售额为一月结束的2010年是一年53周。然而，公司的品牌销售实际上是3.1%高的调整后的52周的还原因子。持续集中在节约成本导致了较高的营业利润比销售。在£税前利润551000000记录（9%在过去的一年）。
接下来继续提供强劲的现金流，产生过剩的现金9200万£后资本费用，利息，税和股息。我们期望它会流入双在未来的一年。多余的现金被用来买了10000000股，并综合作用产生的现金和股票回购（今年和去年）已经由7.5%提高EPS。股息有符合EPS上升，上升18%至78便士每股。
