Home and fashion retailer Laura Ashley (ALY) reported better than expected results for the first six months, with UK retail sales up 1.2 per cent on a like-for-like basis. Trading was buoyed by the home accessories division, which finance director Sean Anglim said had been the "big winner".
The division, which sells goods such as bed linen and lighting, reported a 4.3 per cent uptick in like-for-like sales, against wider market growth of below 1 per cent. Mr Anglim attributed the outperformance to getting the product range right. Decorating enjoyed a good period, too, and in fashion Mr Anglim said a focus on design, fit, quality, price and advertising was winning back customers. The overseas businesses also fared well, with sales up 14 per cent to £17.1m as the company added more stores.
Furniture was the weak point. The unit's like-for-like sales dipped 1.2 per cent, but Mr Anglim said he was encouraged by the performance of new product lines. Overall, pre-tax profit before exceptional items was 9 per cent higher at £8.5m.
In the second half, so far underlying sales are running 8 per cent ahead. Broker Cantor Fitzgerald expects pre-tax profit of £20.5m for the full year, giving EPS of 2p.
| LAURA ASHLEY (ALY) | ||||
|---|---|---|---|---|
| ORD PRICE: | 27p | MARKET VALUE: | £201m | |
| TOUCH: | 27-28p | 12-MONTH HIGH: | 28p | LOW: 22p |
| DIVIDEND YIELD: | 7.4%* | PE RATIO: | 12 | |
| NET ASSET VALUE: | 6p | NET CASH: | £13.8m | |
| Half-year to 26 Jul | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2013 | 137 | 7.4 | 0.76 | 1 |
| 2014 | 144 | 8.5 | 0.87 | 1 |
| % change | +5 | +15 | +14 | - |
Ex-div: 17 Sep Payment: 3 Oct *Not inclusive of special dividends of 1.5p a share in respect of last year | ||||
