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19/05/2009
Dividends Cut As M&S Profits Fall
UK retailer Marks and Spencer has announced a 40% fall in profits from last year.
M&S cut its dividend by a third - from 22p in the previous year, to 15p a share for the year to 28 March - after its annual pre-tax profits fell to £706 million from £1.1bn the year before.
The company announced like-for-like sales reduced by 1.7%, however it increased sales in international stores by nearly 26% and, overall sales rose 0.4% to £9.1bn.
M&S has also reduced its debt from more than £3bn to £2.5bn.
The retailer's boss Sir Stuart Rose said heavy discounting and price reductions had seen profits slump, saying the year had been a "difficult" one, adding: "It has not got any worse."
He also said the company had acted decisively to minimise effects of the economic downturn, by cutting the final dividend.
"We sharpened our values without compromising on quality," he said. "We believe this, together with our investment programme, is creating stronger foundations for long-term growth."
In January M&S announced plans to cut 1,200 jobs and close 27 stores in order to restructure its business.
Sir Stuart described the move as "unpleasant" but said: "I think we are through the worst."
The retail giant's boss also said Ian Dyson, Finance and Operations Director, will be responsible for a new programme called '2020 - doing the right thing', which will "deliver a step change in the way we service our customers' needs and in the way in which we operate our business".
M&S is celebrating its 125th anniversary, and selling a number of items at a penny, starting from tomorrow, harking back to its beginnings as a penny bazaar.
(JM/BMcC)
M&S cut its dividend by a third - from 22p in the previous year, to 15p a share for the year to 28 March - after its annual pre-tax profits fell to £706 million from £1.1bn the year before.
The company announced like-for-like sales reduced by 1.7%, however it increased sales in international stores by nearly 26% and, overall sales rose 0.4% to £9.1bn.
M&S has also reduced its debt from more than £3bn to £2.5bn.
The retailer's boss Sir Stuart Rose said heavy discounting and price reductions had seen profits slump, saying the year had been a "difficult" one, adding: "It has not got any worse."
He also said the company had acted decisively to minimise effects of the economic downturn, by cutting the final dividend.
"We sharpened our values without compromising on quality," he said. "We believe this, together with our investment programme, is creating stronger foundations for long-term growth."
In January M&S announced plans to cut 1,200 jobs and close 27 stores in order to restructure its business.
Sir Stuart described the move as "unpleasant" but said: "I think we are through the worst."
The retail giant's boss also said Ian Dyson, Finance and Operations Director, will be responsible for a new programme called '2020 - doing the right thing', which will "deliver a step change in the way we service our customers' needs and in the way in which we operate our business".
M&S is celebrating its 125th anniversary, and selling a number of items at a penny, starting from tomorrow, harking back to its beginnings as a penny bazaar.
(JM/BMcC)
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