Analysis by Phil Oakley



In his weekly roundup Phil Oakley, a well respected analyst now working for Ionic who platform ShareScope and SharePad, includes analysis of Next on pages 9 through 13 of pdf file in following link:

He points out affect of interest payments boosting profit margins and estimates profit margin if interest payments removed. I remember some years ago reading an article that pointed out amount of profits made on Next’s credit card and that this was under threat as customers switched to credit cards with lower interest rates.


R – It’s a point that also concerns me, however, it’s amazing how many people are oblivious to the financial aspects of their purchasing methods.
Martin Lewis is very visible and doing his best to educate people - and the shows can be construed as mildly entertaining if watched “IN FULL”, but there is a world of difference between people watching a program and actually doing something about it.

Without being derogatory I’m assuming that once everyone has finished laughing at the antics on the show, they make a cup of tea and then switch to Coronation Street or Emmerdale.

Still I’m also curious as to what constitutes a good price for Next – I entered at £40.6 so am sitting on a 25% gain or thereabouts + a whole raft of dividends which takes that number far higher (can’t be arxed to calculate it).

When do we say syonara, or is it that Next will maintain a respectable credit card margin business, manage the costs of a declining stores business at each lease renewal and continue to grow the online stuff?

Games – Can they keep the high margins is the other key question of course!!