N Brown growth accelerates as new CEO Spindler expands stores

9th Oct 2013 07:16

Growth has accelerated in the first half of the year at online and catalogue retailer N Brown, with new Chief Executive Officer Angela Spindler looking to push forward with a bricks and mortar strategy in the UK. In the 26 weeks to the end of August, prior to Spindler starting, total group revenues rose 8% to £409.6m, up from the 6% rise seen in the last full year but in line with expectations. Profits before tax and fair value adjustments were 5.9% ahead of the same period of the year before to £48.4m, as cost cutting compensated for lower margins, with adjusted earnings rising 0.6% to 12.55p per share.After spending her first three months looking at the business in detail Spindler said she was excited by what she had seen. "As these results demonstrate, the business is performing well, with significant opportunity for growth in the future based around our products, delivery channels and international development."She confirmed that the FTSE 250 group would roll out its Simply Be and Jacamo store portfolio in the UK to 25 sites. The group has six sites in the UK operating under the Simply Be/Jacamo store brands for clothes of all sizes, plus one other N Brown store, which together broke even at the store level but lost £1m in the period. Two new dual fascia Simply Be/Jacamo stores are planned in Leeds and Derby in the second half, with management seeing stores as an an effective multichannel hub for customers who also use the online stores.A previous net cash inflow reversed to a net outflow of £9.2m in the main due to increased investment in working capital, with £52.1m in the bank at period-end.A dividend increase of 4% to 5.67p has been proposed based on the growth in trading profit and gearing reduced from 45% to 43% on borrowings of £197.9m.Broker Jefferies noted that momentum has returned to the group over the last 12 or so months across all areas, which shifted the forecast risk to the upside, in its view.OH