Next has raised £54.1m to improve its cash flow and top up its dividend after selling land it no longer wanted at Waltham Abbey in Essex.

The retailer had purchased the land in 2021 with the intention of consolidating two of its regional distribution centres.

However, Next has since changed its distribution network plans and said the site was no longer needed.

The company confirmed that the sale had generated net cash proceeds after costs of £54.1m and an exceptional profit of £16.3m. Transactions of this nature do not form part of Next’s normal business however and so the profit will be classified as exceptional.

As a result, Next has revealed the additional cashflow would increase the surplus cash it has available for shareholder distributions in its ongoing financial year.

In its Q3 trading statement published in October, Next revealed that in the absence of any acquisitions or further share buybacks, it would pay a special dividend of around £3.10 per share. The retailer has confirmed the £54.1m additional cash inflow will now increase that dividend by 45p.

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