City File: Next shares

IF YOU bought Next shares at the beginning of 1991, you would be sitting on a 10-fold profit by now. And, according to Chris Dickman at Smith New Court, the share price is still too low.

He points out that sales growth is in the low teens, and that the superb bad-debt record of Club 24, the credit card side, means it will make a profit of pounds 5m this year. Pre-tax profits for the year to January are expected to soar to pounds 55m, putting the shares, at 175p, on an earnings multiple of just 13.