Posts in Analysis

This is what ten years of relentless profitability looks like

Revenue or cash flow, it's all good By including leases in the definition of 'capital', suddenly Next's accounts make sense. Over the last decade the company has performed astonishingly well earning a median return on capital of 15%, dropping only to 13% during 2009, a year many retailers, indeed businessmen, would like to forget:

What a team

Young, successful, experienced, Next's management team appears to have it all, which may explain the company's performance.

Next: The gearing conundrum

Highly geared and financially strong Include leases at their face value in the notes to the accounts and Next is 5% funded by equity and 95% funded by liabilities of one kind or another.

A lesson in retail

What it takes to succeed in the high street Fashion retailer Next's annual report is a lesson in how to run a business efficiently. It's impossible not to think of struggling retailers while reading it.

Why I’m terrified of analysing Next

The contrarian investor's nightmare

Next, the clothing retailer, has tormented me for years. A model of success even in adversity, it's so repulsive I've never even opened its annual report. But that's about to change...

Restoration man

Banking on experience Stephen Marks founded French Connection in 1972, rescued it from the recession of 1989 and is currently turning the company around again. The bad news is it needs turning around

Redefining French Connection

Walks like a net-net, talks like a net-net, but it isn't one

Leases are not only key to interpreting French Connection's financial position, they affect valuation.