NEXT (NXT) – Retail
| Price: £136.60 +0.1% | P/E: 18.9x |
| Market Cap: £15.9bn | Yield: 4.2% |
In line with the firm’s long-standing commitment to return what it calls truly surplus cash to investors, Next is handing back £421 million in the form of a B share with a value of 360p.
The company says it has spent time reviewing the different ways to repay the cash and a B share scheme is more effective than a special dividend.
Our View
Obviously free money is no bad thing, and Next seems convinced B shares are the way to go, so investors will no doubt approve the scheme at the general meeting next month despite the meagre move in the stock price.
Read the press release including details of the scheme here: https://www.nextplc.co.uk/investors
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