Suit specialist Moss Bros (MOSB) surprised shareholders with a more than fivefold increase in the total dividend after a year of solid trading.
Growth at the retail division offset a fall in hire sales, hit by a slump in wedding business, as couples chose not to tie the knot in 'unlucky' 2013. Still, Royal Ascot, eveningwear and prom categories all did well and like-for-like sales before VAT rose 3.9 per cent. Tight cost control and direct sourcing, meanwhile, were good for profits.
Online revenue tripled, and although it represents just 5 per cent of all sales, Moss Bros has only recently ventured into cyberspace and this should be a major source of future earnings growth. "There's no reason why online sales can't reach the good double-digits in terms of the proportion of overall sales," believes chief executive Brian Brick.
So far this year, sales are up 7 per cent and Moss Bros will be busy refurbishing 28 stores, opening other shops, re-launching own-brand products and expanding overseas - a dedicated website for the Australian market will launch soon.
Broker Peel Hunt expects adjusted EPS of 3.3p in 2015, up from 3.1p last year.
| MOSS BROS (MOSB) | ||||
|---|---|---|---|---|
| ORD PRICE: | 100p | MARKET VALUE: | £99m | |
| TOUCH: | 99-101p | 12-MONTH HIGH: | 101p | LOW: 54p |
| DIVIDEND YIELD: | 5% | PE RATIO: | 27 | |
| NET ASSET VALUE: | 39p | NET CASH: | £28m | |
| Year to 25 Jan | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2010 | 129 | -6.7 | -6.1 | nil |
| 2011 | 88 | -8.9 | -7.5 | nil |
| 2012 | 101 | 0.9 | 1.6 | 0.4 |
| 2013 | 105 | 3.1 | 2.5 | 0.9 |
| 2014 | 109 | 4.4 | 3.8 | 5 |
| % change | +4 | +42 | +50 | +456 |
Ex-div: 4 Jun Payment: 26 Jun | ||||
