Next sells customer services unit to Capita

1st Jul 2011 14:38

Fashion retailer Next has sold its customer services operation Ventura to The Capita Group for £65m in cash and expects to use the majority of proceeds to repurchase its shares. Next, now expects to buy back shares worth £225m, up from its previous target of £160m.Ventura, the trading name of Club 24 Limited, has been a part of Next since its inception in 1977 and the third-party customer services operation had recorded an operating profit of £8m on turnover of £156m in the year to January 2011. Capita, in a separate press release said it "expects the acquisition to increase its capacity for customer management services, providing additional front office services and flexible capacity for existing group clients."Shares of Next slipped 1.1% to 2,299p in late afternoon trading, while shares of Capita were trading 0.7% lower at 710.50p in London. AR