Surprise profits boost for M and S

12 April 2012

Marks & Spencer boss Sir Stuart Rose has drawn encouragement from recent trading after the chain posted an unexpected rise in half-year profits.

Sir Stuart announced profits of £298.3 million for the six months to September 26, ahead of City forecasts and slightly stronger than a year earlier.

He added that the third quarter of the financial year had got off to a good start, although he warned that trading conditions remained competitive.

Marks has also revealed plans to sell around 400 branded products from firms such as Kellogg's, Coca-Cola and Marmite across its UK store network.

The chain is rolling out the sale of branded household goods and groceries after a successful trial in stores in the North East and South East of England.

M&S said it could "simply never compete" with certain popular brands and was introducing them to its shops for the convenience of customers.

No M&S products are to be dropped as a result of the move, which will focus on lines where the retailer would have a lower share of the market such as soft drinks, beer, laundry and confectionery.

The latest figures reveal that M&S increased sales by 2.8% to £4.3 billion in the half-year period, helped by 12% growth overseas. UK revenues were 1.8% higher, but down 0.9% when changes in store space are excluded.

The company said tight management of costs and operating margins also enabled it to beat last year's profits figure.

The result represents a recovery from earlier in the year, when Marks announced a 40% drop in full-year profits to £604.4 million and cut its annual dividend by 33% - the first such move since 2000.

Create a FREE account to continue reading

eros

Registration is a free and easy way to support our journalism.

Join our community where you can: comment on stories; sign up to newsletters; enter competitions and access content on our app.

Your email address

Must be at least 6 characters, include an upper and lower case character and a number

You must be at least 18 years old to create an account

* Required fields

Already have an account? SIGN IN

By clicking Create Account you confirm that your data has been entered correctly and you have read and agree to our Terms of use , Cookie policy and Privacy policy .

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

Thank you for registering

Please refresh the page or navigate to another page on the site to be automatically logged in