Retailer Next sees profits up 4%

Next had already said it expects a tough 2008

Clothing retailer Next has unveiled a 4% rise in annual profits, saying it represented a good result "in a period of economic slowdown".

Reporting for the 12 months ending 31 January 2008, Next made a pre-tax profit of £498.1m, compared with £478.4m a year earlier.

Its annual revenues rose by 1.4% to £3.33bn, from £3.28bn.

Looking ahead, Next reiterated that it expects difficult trading conditions to continue in the coming year.

'Best protection'

While revenues at Next's stores were flat at £2.255bn, those at its Next Directory mail order and internet division increased by 3.3% to £799.8m.

The chairman of Next, John Barton, seems to be heaping responsibility on the chancellor for the slowdown on the High Street BBC Business Editor Robert Peston Read Robert Peston's blog See Next's share price

"We believe that our main strategy of investing in the Next brand whilst improving and extending our product ranges will offer us the best protection against any downturn in the UK economy," said Next chairman John Barton.

"Our Directory business, in particular, gives us a strong and flexible base from which to grow our product offering."

Next said it was set to expand its overseas operations.

BBC Business Editor Robert Peston said it was interesting to note that Next had used its trading statement to criticise the government for raising taxes.

"Or to put it another way, the chairman of Next, John Barton, seems to be heaping responsibility on the chancellor for the slowdown on the High Street," said our correspondent.