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Laura Ashley still suffering internationally

Despite a robust UK performance, the home furnishings retailer found it hard to navigate international markets last year
March 24, 2016

Home furnishings retailer Laura Ashley (ALY) is changing its financial year end from 30 January to 30 June. That renders these figures the last set of annual results which are truly comparable - at least for a time. Another set of results documenting the 17-month period to the end of June 2016 will be released in August 2016.

IC TIP: Hold at 24p

For now, the story isn't much changed at the British high street stalwart. At home, the group performed well, with like-for-like retail sales up 4.8 per cent. Home accessories, the largest business segment, reported an impressive 8.7 per cent improvement in sales on the same basis.

On the international front, the business has struggled. Last year franchise and licensing revenues fell 28.4 per cent to £22.4m due to a subdued Japanese market. One less trading week during full-year 2016 didn't help either, and this had a knock-on effect at both the top and bottom lines. Group sales fell 4.6 per cent overall, while adjusted profits (which exclude one-off charges) still fell 9.6 per cent to £20.7m.

Taking into account the forthcoming accounting change, brokerage Cantor Fitzgerald forecasts pre-tax profits of £21m, leading to EPS of 2.3p for the year ended June 2017.

LAURA ASHLEY (ALY)
ORD PRICE:24pMARKET VALUE:£181m
TOUCH:24-24.5p12-MONTH HIGH:36pLOW: 22p
DIVIDEND YIELD:4.1%PE RATIO:12
NET ASSET VALUE:6pNET DEBT:8%

Year to 30 JanTurnover (£m)Pre-tax profit (£m)Earnings per share (p)Dividend per share (p)
201228618.41.82.0
201329920.12.02.0
201429519.32.23.5
201530423.52.52.0
201629019.42.11.0
% change-5-17-16-

Ex-div: 16 Jun

Payment: 8 Jul