Like-for-like sales at suit specialist Moss Bros (MOSB) rose 6 per cent in the first half, as strong trading in the retail division offset a 2.7 per cent decline in hire.
The hire division, which accounted for 15 per cent of group revenue, was hit by a lack-lustre wedding season. This problem should ease in the second half, when demand for hired eveningwear picks up. Hire has also yet to fully benefit from recent changes set to push the division back into growth. These include new Ted Baker lounge suits for adults and children and other contemporary styles previously unavailable for hire. "We already have products in stores and are taking orders for next year," says chief executive Brian Brick.
In the much larger retail division, like-for-like sales grew 9 per cent, benefiting from new products and a doubling of online sales. Overall, group pre-tax profit fell, but that was entirely due to a higher number of stores being closed for refurbishment.
The underlying growth recorded in the first half has continued into the second. Mr Brick says the company is "on target" with its strategy, having successfully repositioned its own-brand range this autumn and completed an IT overhaul to save customer records across all channels. "The perception of Moss Bros in now changing," he added.
Peel Hunt expects pre-tax profit of £4.4m for the full year, giving EPS of 3.3p - up from £4m and 3.1p in 2014.
| MOSS BROS (MOSB) | ||||
|---|---|---|---|---|
| ORD PRICE: | 93p | MARKET VALUE: | £ 93.7m | |
| TOUCH: | 92-93p | 12-MONTH HIGH: | 126p | LOW: 68p |
| DIVIDEND YIELD: | 6.9% | PE RATIO: | 27 | |
| NET ASSET VALUE: | 36p | NET CASH: | £22.8m | |
| Half-year to 26 Jul | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2013 | 53.3 | 2.2 | 1.8 | 0.3 |
| 2014 | 55.8 | 2.0 | 1.5 | 1.7 |
| % change | +5 | -12 | -15 | +467 |
Ex-div:30 Oct Payment:27 Nov | ||||
