Clothing retailer Next plans to pay another special dividend totalling £90m and signalled that it may issue a further three payouts this year.

The retailer said it will pay a special dividend of 60 pence per share, which will be paid on May 1.

In its December statement Next set out how it would determine share buybacks. Using the lower end of its January 2016 profit guidance and the rate of return investment hurdle, the price limit calculated was £67.

Since that time, its share price has remained above £67 and it has been unable to return cash through share buybacks. It said that in the coming year it will generate around £360m in surplus cash. If it is unable to buy back shares, it intends to return the cash in four quarterly special dividends of approximately £90m each.

Next emphasised that the increase in the dividend is a reflection of its expectations for cashflow and is not a reflection of current trading.