NEXT plc – Strongest Survivor

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NEXT plc – Strongest Survivor
<a href="https://pixabay.com/users/geralt/">geralt</a> / Pixabay

Reporting full year results today, NEXT plc (LON:NXT) (OTCMKTS:NXGPY) revealed that it had remained profitable throughout the pandemic, driven by the strength of its online offering.

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Q4 2020 hedge fund letters, conferences and more

  • Profits of £42m were reported from sales down 17% to £3.6bn.
  • The group will not pay a final dividend but expect to be able to resume payments to shareholders later in the year.
  • The group sees profits recovering to pre-pandemic levels during the current year, assuming no further returns to lockdowns in the UK. The shares jumped 300p to 8166p in reaction to the numbers.

NEXT Is A Remarkable Business

Commenting on the figures Steve Clayton fund manager of the Hargreaves Lansdown Select funds, which hold NEXT plc shares said:

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“Profits may have more than halved, but to be reporting any sort of profit at all as a fashion retailer after a year like 2020 is a remarkable achievement. But NEXT is a remarkable business. The group saw the potential of online retailing years before their rivals took it seriously. As a result Next was earning most of its money online, even before the pandemic struck. That has left it in a far stronger position than rivals like M&S (loss-making), or Arcadia and Debenhams (both now bankrupt). When NEXT does reopen their doors they will be perhaps the strongest of the survivors and Britons have saved up a lot of spending money during lockdown. We see NEXT as incredibly well positioned to generate profit and cash in the years ahead”.


About Hargreaves Lansdown

1.5 million investors trust us with £120.6 billion (as at 31 December 2020), making us the UK’s largest direct-to-investor service.

 

For more information: www.hl.co.uk/about-us

 

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Jacob Wolinsky is the founder of ValueWalk.com, a popular value investing and hedge fund focused investment website. Jacob worked as an equity analyst first at a micro-cap focused private equity firm, followed by a stint at a smid cap focused research shop. Jacob lives with his wife and four kids in Passaic NJ. - Email: jacob(at)valuewalk.com - Twitter username: JacobWolinsky - Full Disclosure: I do not purchase any equities anymore to avoid even the appearance of a conflict of interest and because at times I may receive grey areas of insider information. I have a few existing holdings from years ago, but I have sold off most of the equities and now only purchase mutual funds and some ETFs. I also own a few grams of Gold and Silver

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