Like other retailers that have ventured east, Laura Ashley (ALY) may be ruing its exposure to volatile Asian economies. Foreign operations may only account for 8 per cent of group revenue, but these half-year numbers from the home furnishings group showed a 31.5 per cent drop in international franchise and licensing revenue, which management blamed on a rise in local Japanese sales taxes coupled with the weak yen. Political instability in Russia and Ukraine also contributed to the poor performance, although locations in South Korea and the Middle East fared better.
At home the picture was more positive. Closing 10 stores and only opening three dragged total group sales down 3 per cent. But on a like-for-like basis UK retail sales rose 7 per cent, with the furniture, home accessories and decorating categories up 10.4 per cent, 10.5 per cent and 4 per cent, respectively. Fashion sales dipped 5 per cent overall, but were flat on a like-for-like basis. Chief financial officer Sean Anglim said clothing sales were hurt by the store closures, which were disproportionately weighted to that category.
Analysts at Cantor Fitzgerald expect pre-tax profit of £22.9m for the current financial year, giving EPS of 2.5p, compared with £22.7m and 2.5p for the year ended January 2015.
| LAURA ASHLEY (ALY) | ||||
|---|---|---|---|---|
| ORD PRICE: | 28p | MARKET VALUE: | £209m | |
| TOUCH: | 27.75-28.25p | 12-MONTH HIGH: | 36p | LOW: 25p |
| DIVIDEND YIELD: | 7.1% | PE RATIO: | 11 | |
| NET ASSET VALUE: | 5.7p | NET CASH: | £20m | |
| Half-year to 30 Jun | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2014 | 144.0 | 8.5 | 0.87 | 1.0 |
| 2015 | 139.7 | 8.4 | 0.93 | 1.0 |
| % change | -3 | -1 | +7 | - |
Ex-div: 17 Sep Payment: 9 Oct | ||||
