[Next PLC]

By

Table of Contents

ABSTRACTIII

CHAPTER 1: INTRODUCTION1

The reasons for choosing the project topic area1

The Business and financial performance of the NEXT PLC over three year Period1

Financial Analysis1

Long Term Debt3

SWOT Analysis - Analysis3

Strengths4

Environmental opportunities4

Bargaining power of suppliers5

The threats of the new entrants5

Threat of new products and services6

The reason for choosing the particular organisation9

The Market11

Research Aim and Objectives:12

Research Statement12

Research Design12

Literature Search13

CHAPTER 2: DISCUSSION ON LIMITATION ON INFORMATION GATHERING AND ACCOUNTING14

Ethical Concerns14

Limitations15

REFERENCES16

ABSTRACT

This report Analyses the business environment in which NEXT PLC is working, the reason for writing this report is to analyse NEXT Plc and compare it with the overall Retail clothing market. This is a detail report in which not only the company is analysed through its financial statements but also through the working environment in which it operates.Chapter 1: Introduction

The reasons for choosing the project topic area

The reason for conducting this report is to do thorough analysis on the retail sector particularly NEXT Plc. This report will analyse the working environment of NEXT and will give an idea about how the company operates. Next Plc is expanding quickly, and if the development rate continues it will be very profitable. Today, those sales and earnings figures are encompassed in the outcomes of the repertoire. Furthermore, this report will help in giving a deeper insight about how the retail market and how Next Plc operates in the market. (Marks, 2007, 458)

This Study will give the reader an idea of the clothing retail market in general and an in-depth analysis of NEXT Plc in detail. The main emphasis in this essay is the Retail and Directive division of NEXT Plc because they are the cash generators. Furthermore it shows the current situation of NEXT, its environment and the recent development of the company. The NEXT plc also deals in online trade; this gives a whole new dimension to their business. Through online trade they can expand their business abroad and get more customers all over the world. (Fame, 2010, 30)

The Business and financial performance of the NEXT PLC over three year Period

Financial Analysis

Ratios

Exchange rate used is that of the Year End reported date

Profitability Ratios

01/30/2010

01/24/2009

01/26/2008

01/27/2007

ROA % (Net)

20.64

17.8

22.18

21.83

ROE % (Net)

246.79

782.53

645

149.23

ROI % (Operating)

69.02

62.27

74.7

71.5

EBITDA Margin %

15.64

14.58

16.18

15.53

Calculated Tax Rate %

28.01

29.56

29.02

30.8

Profitability Ratios

01/28/2006

ROA % (Net)

22.69

ROE % (Net)

118.03

ROI % (Operating)

72.86

EBITDA Margin %

14.4

Calculated Tax Rate %

30.32

Liquidity Ratios

01/30/2010

01/24/2009

01/26/2008

01/27/2007

Quick Ratio

0.84

0.81

0.53

0.82

Current Ratio

1.37

1.54

0.94

1.33

Net Current Assets % TA

16.72

21.52

(3.88)

15.53

Liquidity Ratios

01/28/2006

Quick Ratio

0.66

Current Ratio

1.21

Net Current Assets % TA

10.59

Debt Management

01/30/2010

01/24/2009

01/26/2008

01/27/2007

3.9

3.62

Equity<0

2.81

Asset Management

01/30/2010

01/24/2009

01/26/2008

01/27/2007

Total Asset Turnover

1.93

1.93

2.09

2.16

Receivables Turnover

6.36

6.45

6.84

7.23

Inventory Turnover

7.68

7.41

7.92

7.83

Accounts Payable Turnover

17.65

17.27

19.11

-

Accrued Expenses Turnover

64.14

65.35

54.59

-

Property Plant & Equip Turnover

5.63

5.36

5.78

6.22

Cash & Equivalents Turnover

43.3

63.21

37.57

34.39

Asset Management

01/28/2006

Total Asset Turnover

2.25

Receivables Turnover

7.93

Inventory Turnover

7.17

Accounts Payable Turnover

-

Accrued Expenses Turnover

-

Property Plant & Equip Turnover

6.64

Cash & Equivalents Turnover

43.84

Per Share

01/30/2010

01/24/2009

01/26/2008

01/27/2007

Cash Flow per Share

2.91

2.32

2.47

2.21

Book Value per Share

0.7

0.8

(0.39)

0.83

Per Share

01/28/2006

Cash Flow per Share

1.62

Book Value per Share

1.04

Long Term Debt

Jan. 30, 2010, £521,900,000 (including current portion of £400,000) comprised of:

-- 01 -- £520,900,000 corporate bonds, bearing coupon rates from 5.25% to 5.875%, repayable from 2013 to 2016.

Lines of Credit: As of Jan. 30, 2010, Co. had undrawn committed borrowing facilities of £295,000,000 (Lynch, 1997)

SWOT Analysis - Analysis

SWOT analysis is done to analyze the external and internal environment of the company, strengths and weakness are considered ...