Earnings at JD Sports (JD.) finished the year 8 per cent ahead of analysts' forecasts, thanks to a sterling performance from the sports division that offset a lacklustre showing from the fashion category.
Indeed, pre-tax profit before £19m of exceptional property, restructuring and impairment costs jumped 27 per cent to £77m. That reflected a 6.7 per cent rise in underlying sales in the core UK and Ireland sports categories and a robust performance in the overseas business, where JD opened new stores in France and Spain and acquired businesses in Holland and Germany.
Outdoors brands Blacks and Millets, meanwhile, managed to break even in the second half, compared to a £4.9m loss in the previous year's second half. Integrating these businesses has led to some disruption, however, but that has also lowered costs and helped create a better growth platform. JD has further built its presence in the outdoors category by acquiring struggling brand, Tiso. Still, losses in fashion swelled to £6.4m from £1.7m, driven by poor trading at Bank, although a new managing director is spearheading a turnaround plan.
Investec expects adjusted pre-tax profit of £81.3m in 2015, giving EPS of 124.6p (from £77m and 117.1p in 2014).
JD SPORTS (JD.) | ||||
---|---|---|---|---|
ORD PRICE: | 1,628p | MARKET VALUE: | £793m | |
TOUCH: | 1,612-1,644p | 12-MONTH HIGH: | 1,710p | LOW: 710p |
DIVIDEND YIELD: | 1.7% | PE RATIO: | 20 | |
NET ASSET VALUE: | 533p* | NET CASH: | £45.3m |
Year to 1 Feb | Turnover (£bn) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
---|---|---|---|---|
2010 | 0.77 | 61.4 | 88.2 | 18 |
2011 | 0.88 | 78.6 | 115.0 | 23 |
2012 | 1.06 | 67.4 | 96.3 | 25.3 |
2013 | 1.26 | 55.1 | 79.7 | 26.3 |
2014 | 1.33 | 57.9 | 82.5 | 27.1 |
% change | +6 | +5 | +4 | +3 |
Ex-div: 7 May Payment: 4 Aug *Includes intangible assets of £104.3m, or 214p a share |