Jun 24, 2022
Investors’ Chronicle: JD Sports, James Cropper, Telecom Plus
In its delayed full-year release, JD Sports Fashion announced record profits and a robust margin performance, in a year marred by Competition and Markets Authority investigations and corporate governance concerns. Sales at the JD UK and Ireland business were up by £508mn to £2.3bn. Gross margin rose by 110 basis points to 49.1 per cent, boosted by performance in the US, where the margin soared by 310 basis points to 49.8 per cent and where demand was helped by the government's fiscal stimulus. James Cropper's high-tech materials division has papered over cracks as the company saw sales come back to pre-pandemic levels but with profits not yet following, as high energy costs begin to bite. Landline and broadband sales fell by 2 per cent to £130mn, and mobile sales were up by 10 per cent to £45mn. Telecom was only authorised as an insurance broker in 2020, but Lindsay said that insurance "Should be a material growth driver moving forwards". Against this sits rising customer numbers, strong cash generation, and an improving outlook - Telecom has hiked its adjusted profit before tax forecast to £75mn for next year and expects to raise the full-year dividend by at least 14 per cent.
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