Next shares slide as retailer warns on weak UK growth and jobs

Next forecasts anaemic growth across the UK, attributing constrained progress to declining job opportunities, new regulation that erodes competitiveness, government spending commitments beyond available means, and a rising tax burden that undermines national productivity. The medium- to long-term outlook for the UK economy is judged unfavourable, though a cliff edge is not expected. Next reported a near-18% rise in half-year pre-tax profits to £509m and a 10.3% increase in sales to £3.3bn for the six months to July. The company announced a further £99m shareholder payout via an 87p-per-share dividend. Shares fell 6% on the FTSE 100.

"The medium- to long-term outlook for the UK economy does not look favourable. To be clear, we do not believe the UK economy is approaching a cliff edge, Next's half-year earnings report said. At best we expect anaemic growth, with progress constrained by four factors: declining job opportunities; new regulation that erodes competitiveness;, government spending commitments that are beyond its means; and a rising tax burden that undermines national productivity."

"The warning came as the company announced it would hand a further 99m to it shareholders, via a dividend worth 87p per share. It followed a near-18% jump in half-year pre-tax profits to 509m, on a statutory basis, as sales in the six months to July rose by 10.3% to 3.3bn. Shares tumbled by 6% at the start of trading on Thursday morning, making them the biggest faller on the FTSE 100."

Read at www.theguardian.com