Secondary Recommendation

N Brown

November 2013

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.

The negative reaction to the results was one occasion where the market has got it badly wrong. The company produced a respectable 8% rise in turnover to Â£410m while pretax profit increased 7% to Â£45m. A rise in the tax rate from 17.3% to 22% explains why eps might have looked flat at 12.6p. Like-for-like sales grew 8%, as its catalogues continued to attract new customers, while all its specialist brands and homewares and lifestyle categories enjoyed growth. However, the reason the shares fell out of bed was an increase in bad debts, which reduced gross margins 80 basis points to 52.5% but it's important to remember that a large proportion of N Brown's profit comes from advancing credit and therefore every time it acquires new cu ...

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UK Mail - Booming online commerce driving rapid growth in parcels division

ITV - Strong franchise in free-to-air commercial TV

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 - New eps forecast for 2017 of 37.4p (June 2014)

N Brown - Migration of sales online should trigger large reduction in costs (April 2014)

N Brown (March 2014)

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.

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