Shares in the homewear and fashion retailer Next surged in early trade this morning after the company issued its full year results. The company has a habit of playing down forecasts then trouncing them with the numbers and this year has been no exception. The interim results saw full price sales guided as being 7.5% higher, whilst the actual print came in up 10.9%. That’s played out in pre-tax profits of £1158m, up 14.5% and £8m higher than forecast off the back of higher full price sales. The profit outlook is strong, there’s not too much concern over fall-out from the Middle East conflict and more capital returns are promised to shareholders. The Next share price was up 6% in early trade.
White goods retailer Currys issued an update to the market this morning noting that its CEO was to stand down after eight years in the role. There’s no change to the financial guidance offered by the firm, but markets have reacted badly to the news. The outgoing CEO is seen as having competently navigated the company through a series of challenging headwinds in an increasingly tough commercial environment and the market isn’t overly enthused by the imminent change of direction. The Currys share price was down almost 10% shortly after the open.
The outsourcing company Capita saw its shares gain ground this morning following news of an asset disposal. Whilst the deal was for a nominal £1 with a further £6.5m cash being retained, up to £61.5m could be paid out over the next few years on a contingent basis. The transaction will also result in some significant cost savings as well as simplifying the core business. The market is supportive of the news and the Capita share price was up almost 14% by 8.30am.
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Directorate change - - Intertek Group (ITRK)
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Disposal - - Capita (CPI)
