E-commerce was the star of the show at Laura Ashley last year, and meant that sales held steady despite a 3 per cent reduction in retail selling space. Upgrades to the company's website and expansion into four new European markets drove a 10 per cent increase in online sales, which now account for 14 per cent of the total. And with the brand gaining traction internationally, the shares are worth snapping up.
Five overseas franchised stores were added last year, taking the total to 245 in 29 countries, and lifting overseas revenues by 4.3 per cent to £23.9m. Licensing is another important approach in taking the brand global, and the addition of new categories including bathroom accessories and lingerie helped lift highly profitable licensing income 13 per cent to £3.5m.
Even so, underlying pre-tax profits slipped 2.6 per cent to £18.8m, reflecting a particularly difficult consumer environment in the UK last autumn. However, trading improved towards the end of 2011, and the current financial year has started well, with underlying sales in the first eight weeks up 10.9 per cent. But broker Seymour Pierce doesn't expect this to continue throughout the year, and has downgraded its 2013 pre-tax profits from £21.5m to £20m, giving EPS of 2p (from 1.84p last year).
LAURA ASHLEY (ALY) | ||||
|---|---|---|---|---|
| ORD PRICE: | 23.5p | MARKET VALUE: | £ 172m | |
| TOUCH: | 23-24p | 12-MONTH HIGH: | 26p | LOW: 15p |
| DIVIDEND YIELD: | 8.7% | PE RATIO: | 13 | |
| NET ASSET VALUE: | 8p | NET CASH: | £35m | |
| Year to 28 Jan | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2008 | 238 | 19.8 | 1.90 | 2.00 |
| 2009 | 261 | 10.2 | 0.97 | 1.25 |
| 2010 | 268 | 11.0 | 0.80 | 1.00 |
| 2011 | 285 | 24.1 | 2.65 | 1.50 |
| 2012 | 286 | 18.4 | 1.79 | 2.00 |
| % change | +0 | -24 | -32 | +33 |
Ex-div:13 Jun Payment:11 Jul | ||||
