image

Authoritative Independent Monthly Share Selections Using Technical & Fundamental Analysis

Latest issue now available

SIGN UP NOW
Updates

N Brown - New eps forecast for 2017 of 37.4p

June 2014

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

  • Epic Code:
  • BWNG
  • Price:
  • 462p
Best known for selling plus size clothing via catalogues and online through brands such as Simply Be and JD Williams, N Brown’s results were in line with sales rising 6% to £835m and pretax profit increasing 5% to £100.1m. Eps were flattish at 27.9p due to a higher tax charge, while net borrowings increased from £189m to £214m due to investment in the receivables book. We’re puzzled by the negative share price reaction, which is probably due to the fact that sales growth of 8% in H1 slowed to just 4.9% in H2, while active customers grew just 3.7% but these largely reflected the decision to tighten credit criteria, which reduced bad debt to sales ratio from 8.8% in H1 to 7.5% in H2. Gross margin also declined by 0.3% due to ...

To access our archive of articles and to receive current issues you need to subscribe.

Subscribe now

Already a subscriber? Login

Related Articles

N Brown (March 2017)
N Brown - Delay in Fit 4 the Future program (December 2016)
N Brown - C.70%-80% of FY'17 US$ requirements already hedged (August 2016)
N Brown - Small eps downgrade triggers over-reaction (June 2016)
N Brown - Trading unaffected by mild winter (March 2016)
N Brown - Cooler autumn boosts sales (December 2015)
N Brown (August 2015)
N Brown (June 2015)
N Brown (May 2015)
N Brown - Colder weather boosts sales (February 2015)
N Brown - Warm September triggers profit warning (November 2014)
N Brown - Prospective PE just 14.1 (August 2014)
N Brown - Migration of sales online should trigger large reduction in costs (April 2014)
N Brown (March 2014)
N Brown (November 2013)
N Brown - Shares strong ahead of results on 9th October (October 2013)
N Brown - Online sales 56% of total (September 2013)
N Brown - High margin Internet sales now account for 54% of turnover (June 2013)
N Brown Group - Over half of catalogue retailer's sales now online - our price target is 992p (March 2013)

With small companies there is an above average degree of risk compared to buying blue chips. Please be aware that we have not assessed the suitability of any of these investments for you. The newsletter simply states a personal view and diarises the editor’s investment decisions. Please speak to your stockbroker or other qualified individual to ascertain whether any of these companies mentioned would form useful additions to your own portfolios. Past performance is no indication of future success.

All material on this website is protected by copyright. You may use Information retrieved from the www.scsw.co.uk website for your own personal non-commercial use which means that you may not sell or copy this information to any third party without prior written consent. ISSN 1358-183X