N Brown Group, and its principal subsidiary, JD Williams and Company Ltd, is a leading internet and catalogue home shopping company, with over 140 years of experience in the distance shopping market. Our extensive ranges of value products, principally clothing, footwear, household and electrical goods, are carefully targeted at the right customers and are provided through whichever channels to market our customers demand. In addition we provide financial services to our customer base, including flexible credit plans.

http://www.nbrown.co.uk/

Half Yearly Report
RNS
RNS Number : 1685C
Brown (N.) Group PLC
14 October 2015

14 October 2015

N BROWN GROUP PLC



HALF YEAR RESULTS FOR THE 26 WEEKS ENDED 29 AUGUST 2015



RESULTS IN LINE WITH EXPECTATIONS;

TRANSFORMATION STRATEGY ON TRACK



N Brown Group Plc, the leading multi-channel, specialist fit fashion retailer today announces results for the half year to 29 August 2015.



Financial highlights:

· Total group revenue +4.2% to £415.8m (H1 FY15: £399.2m)

· Product revenue +6.1% and Financial Services revenue -0.4%

· Operating profit excluding exceptionals -14.2% to £38.8m (H1 FY15: £45.2m)

· Underlying trading profit* before tax -15.9% yoy to £35.0m (H1 FY15: £41.6m), in line with expectations

· Statutory profit before tax -54.6% to £19.4m (H1 FY15: £42.7m), reflecting exceptional costs accrued over the half largely relating to clearance store closures

· Adjusted earnings per share from continuing operations 5.74p (H1 FY15: 11.56p)

· Statutory earnings per share from continuing operations 5.53p (H1 FY15: 11.88p)

· Half year dividend maintained at 5.67p

· Net debt £239.8m (H1 FY15: £205.2m)

· Enhanced disclosure provided today and going forward



*Underlying trading profit before tax is defined as PBT excluding exceptionals and unrealised FX movement



Operational highlights:

· Continued shift from direct mail-led to digital-first, with online penetration of 63%, up 5ppts yoy. Online penetration of new customers up 7ppts to 69%.

· Active customers +2.8% overall; within this Power Brands active customers +8.2%, driven by marketing recruitment and improved brand awareness.

· Further improvements to product quality and fashion credentials.

· JD Williams turnaround on track, with new customers up 21%. Online performance particularly encouraging, with penetration over 50% for the first time, up 8ppts yoy.

· Strong performance from Simply Be and Jacamo, with product revenue for both up 21%.

· Simply Be and Jacamo stores performed well, with LFL +6% and profitability of LFL stores +12%

· Full estate store review completed, with operational improvements made to Simply Be and Jacamo store estate and 18 clearance stores closed.

· Good USA result, with revenue +35% and operating loss significantly reduced.

· Financial Services performance in line with expectations, with continued improvements in the quality of the credit book, and FCA application submitted.

· Fit 4 the Future systems transformation project on track.

21 Oct Jefferies... 430.00 Buy

Nice bounce on this today, up nearly 20% at moment, dividend maintained (>8%) and profit down less than expected. Hopefully now bottomed out, one of my less successful shares and now a long term investment, just another 30% for me to break even, ignoring the dividends received.

Citigroup comment:
"Consensus PBT likely to remain unchanged — On the back of this statement we do not expect FY17E consensus PBT to change significantly. We have a FY17E PBT forecast £79.3m (EPS 22.7p, -9.3% yoy), this assumes FY total sales of +1.9%. We assume FY gross margins -70bp with opex growth of +3%. This drives forecast EBIT growth of -8.9% yoy. Our FY17E PBT forecast of £79.3m (-10.2% yoy.

Neutral rating, TP 180p

We value N Brown on c. 9. 5x EV/EBIT for Feb 2018E in line with its recent average, this equates to c9x PE and a 6% dividend yield in the same forecast year."

Dropped to 160p a while back, but good news ( can't get worse!) and MoS +Broker "Buys" appear to have shifted this to 260p - maybe if the excitement fades and Sales remain level it may be worth topping up; to AvDn ( always risky ).
EDIT(30May2018)-sp £2 DYOR but looking at the graph from 2014 it's been staggering downwards from over £5 . . . despite being a Long-Term "Distance Seller" ( the JD Williams arm)... so the "INTERNET" is hardly any change at all..... yet the Clothing+Household buying Public appear to be going elsewhere.... Management - that's it...like M&S unwilling to see it's THEIR fault!
EDIT(11Oct2018)-Dividend halved ( now ~5% yield), sp lost 20%, now £1.11 - that's a mighty (again) fall!