As Next chief executive Simon Wolfson prepares to post results ahead of expectations he and senior managers face losing out on a £13 million windfall.

Wolfson and other directors placed a bet in August 2004, using their own money, that would deliver the maximum payout if Next’s share price reached£24.50 by the end of July this year. For them to make any money on the scheme, the price would have to average£20 or more over the three months to the end of the period.

On Wednesday, Next’s shares stood at£12.15 and, in the light of tough trading conditions, industry observers believed there was little prospect of the bet being won.

Managers invested a total of£1.5 million in the scheme. Wolfson put in£500,000 and would have received£2.5 million.

Next said in January that full-year profits would come in at between£492 million and£502 million, “slightly ahead of market expectations”.

However, the fashion group did not expect its core retail division to return to like-for-like growth this year.

Although Next’s shares have traded at a high of£25.04 over the past year, fashion store groups have been among the worst hit by the slowdown. Analysts believe there are few signs that trading conditions will improve.

At the end of last month, broker Credit Suisse issued a note speculating that Next could make an attractive acquisition for Marks & Spencer, but Next’s share price has continued to languish.