Like most retailers, Laura Ashley spent 2009 reigning in costs and keeping a close eye on stock levels after the previous year’s sudden drop in high-street spending. The result has been a rise in profitability and improved cashflow, which meant net cash more than doubled. That performance was all the more impressive given the pound’s steep decline, which raised the cost of imports and wiped £6m off pre-tax profits.
Sales, too, were better than once feared, which was partly down to promotions. “We offered our best-sellers at very good rates to draw customers into the stores,” explains chief executive Lillian Tan. But it also reflects strong growth in e-commerce, up 30 per cent thanks to new made-to-measure features on curtains and furniture.
Although sales have risen 5.6 per cent in the first eight weeks of the current financial year, Ms Tan’s outlook is still 'wait and see'. “It’s an election year so we’re cautious”, she says, but a successful trial of its ‘Laura Ashley Gift & Accessory’ store in London’s Liverpool Street Station means further new concept stores could be opened.
House-broker Numis expects pre-tax profits of £14.4m and EPS of 1.4p next year (from £11.2m and 0.8p in 2010).
LAURA ASHLEY HOLDINGS (ALY) | ||||
|---|---|---|---|---|
| ORD PRICE: | 15p | MARKET VALUE: | £108m | |
| TOUCH: | 14-15p | 12-MONTH HIGH: | 20p | LOW: 11p |
| DIVIDEND YIELD: | 6.9% | PE RATIO: | 18 | |
| NET ASSET VALUE: | 7p | NET CASH: | £17.4m | |
| Year to 30 Jan | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2006 | 211 | 6.10 | 0.56 | 0.50 |
| 2007 | 225 | 12.2 | 1.08 | 1.00 |
| 2008 | 238 | 19.8 | 1.90 | 2.00 |
| 2009 | 261 | 10.2 | 0.97 | 1.25 |
| 2010 | 268 | 11.0 | 0.80 | 1.00 |
| % change | +3 | +8 | -18 | -20 |
Ex-div: 30 Jun Payment: 4 Aug | ||||
