Retailer Next Plc said on Tuesday it had sold non‑operational land at Waltham Abbey in Essex, generating net cash proceeds of £54.1m and an exceptional profit of £16.3m, leading it to hike its previously announced special dividend by 45p.
Next acquired the site in 2021 with plans to consolidate two of its regional distribution centres, but later changed its network strategy and said it no longer requires the land.
The FTSE 100-listed firm said the profit would be classified as exceptional, as such transactions do not form part of its normal business, and stated the additional cashflow would boost funds available for shareholder distributions in the current year.
In its third‑quarter trading statement in October, the group indicated it would pay a special dividend of around £3.10 per share in the absence of acquisitions or further buybacks, but stated the £54m inflow from the land sale would lift that payout to £3.55 per share.
As of 0905 BST, Next shares were up 0.40% at 13,755p.
Reporting by Iain Gilbert at Sharecast.com