M&S rings up £632m profit

UK retailer Marks & Spencer confirmed a return to annual profits growth today after reporting a 4.6% hike to £632.5m (€740m).

An impressive fourth quarter of sales growth helped the group notch up the underlying pre-tax profits haul, which marked a turnaround on the 40% plunge the previous year.

In presenting his last set of annual results, M&S chairman Stuart Rose said the “worst effects of the recession” were now over, but warned over consumer jitters ahead of the emergency Budget on June 22.

The rise in profits provides an early boost for new chief executive Marc Bolland, who joined from rival Morrisons earlier this month.

Rose – who is now non-executive chairman and plans to stand down next March – said M&S had also seen a “satisfactory start” to the new financial year.

However, he added: “Consumers are naturally concerned about any impact of the Budget on June 22. We therefore remain cautious about the outlook for the year ahead.”

M&S saw UK sales lift 0.9% over the year after a far-better-than-expected 5.1% rise in same store sales during the final quarter.

The group’s improved financial performance has seen the group share out an already-announced £81m (€94.6m) bonus pot among employees, including 50,000 store staff.

M&S drove like-for-like food sales higher for the first time since the summer of 2007, up 0.3%. General merchandise sales rose 1.6% and the group claimed to have stolen market share in the clothing sector.