Next. I’m a long time holder of this share and I am still a fan of the business. It has been selling off recently, but let’s take a look at some figures (courtesy of ADVFN.com).
|25 Jan 2014 (GBP)||24 Jan 2015 (GBP)||30 Jan 2016 (GBP)||28 Jan 2017 (GBP)|
|pre tax profit||692.50||18.52%||794.80||19.87%||836.10||20.02%||790.20||19.29%||m|
|eps – basic||366.10||428.30||450.50||441.30|
|eps – diluted||355.60||417.90||443.00||431.80|
|dividends per share||129.00||150.00||158.00||158.00|
So the last four years seem pretty stable
- Turnover has increased by less than 10% – that’s ok this is already a large company and growth is not always the best route forward. Sustainable, quality earnings.
- EPS I tend to ignore unless I can trace how many shares were in issue at each date, but attributable profit is remarkably steady. Down slightly on last year but still significantly up from 2014
- Dividends have remained steady from last year but grown over a long period of time.
Next has a very stable and capable management team. Brexit won’t help general economic conditions but this is a very well established business with trading on a PE of 8.39. The share price is now at its lowest level since mid 2012
Europa Oil & Gas (EOG) moves around a lot on news about the back and forth battle regarding the Wressle Oil field planning permission in Lincolnshire. Whatever your views of onshore exploration on what is, after all, a fairly small island, this issues seems to drive the value of EOG far more than the actual financial effect of a yes or no from the local authority. The real value seems to me to be locked up in the Irish sea.
Therefore, the postscript of the RNS release from this morning is the more relevant from a valuation perspective and should be good news in the near future:
In the meantime, we were pleased to note that Providence Resources has begun drilling operations on the Druid and Drombeg prospects in the South Porcupine Basin offshore Ireland. With the recent arrival of a number of major operators to the region, we believe this well will be the first of many to be drilled over the next few years. Success at this or any other well in Atlantic Ireland will have positive read across for our industry-leading portfolio of licences offshore Ireland where we have already identified 32 prospects and leads in a diverse range of six play types and three basins across all seven of our licences."