Next reveals Q4 2019 profits for new year ahead

Next plc has revealed its Q4 trading statement for 2019.

To December 28, the retailer’s full price sales were up by 5.2 per cent; said to be 1.1 per ahead of its internal forecast. Meanwhile, Next’s year-to-date’s full price sales have gone up 3.9 per cent compared to 2018.

Its full-year profit guidance increased by £2m to £727m, representing an increase of 0.6 per cent.

The high street retailer expects this year’s additional week of sales to generate around £13m worth of profit (this year, there are 53 weeks instead of 52).

In the year ahead, HMRC is said to be accelerating Corporation Tax payments so that the full tax charge is paid in the year in which it is incurred.

Previously, half of the tax payment was deferred until the following year. This change will result in an additional £70m cash outflow to HMRC.

After the retailer takes account of the earlier tax payment and the profit generated from the final week of sales, the cash available to shareholders for distribution during 2020/21 is expected to be £290m.