FY14 results were largely in line with expectations, with only the 13% increase in the final dividend surprising us, an indication of management’s confidence in the direction of the business. Sales fell 5% in FY14, reflecting changed behaviour among home collected credit customers (HCC) and weak consumer sentiment amid marketing for Christmas past. The decline in normalised PBT was held to 4% despite further pressure from low interest rates, supported by good cost control and a good performance from other business lines. Looking forward orders for Christmas future (2014) are up 10%, and with HCC sales already reduced, the underlying growth within the corporate division and the online direct business should be more visible. The shares offer an attractive and well-supported prospective yield of 4.2%.

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