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| M&S in recovery as profits soar | M&S in recovery as profits soar |
| (about 3 hours later) | |
| Marks & Spencer has continued its recovery from a failing brand to a powerhouse of fashion. | Marks & Spencer has continued its recovery from a failing brand to a powerhouse of fashion. |
| Britain's iconic retailer has posted a 28.5% increase in annual pre-tax profit to £965.2m - not far off the record £1bn it saw in 1998 before its decline. | Britain's iconic retailer has posted a 28.5% increase in annual pre-tax profit to £965.2m - not far off the record £1bn it saw in 1998 before its decline. |
| But comments that the retail market was becoming "more challenging" as interest rate rises bite prompted fears that future growth of the brand will slow. | But comments that the retail market was becoming "more challenging" as interest rate rises bite prompted fears that future growth of the brand will slow. |
| M&S shares ended a year-long rise in London closing 5% lower at 703.5 pence. | |
| "It's a good set of numbers, but we believe that M&S will have to run hard to show strong growth in future years," said Philip Dorgan, an analyst at Panmure Gordon & Co. | "It's a good set of numbers, but we believe that M&S will have to run hard to show strong growth in future years," said Philip Dorgan, an analyst at Panmure Gordon & Co. |
| 'Innovation and newness' | 'Innovation and newness' |
| The improved performance was driven by stronger demand for M&S food and clothing, which was supported by an advertising campaign featuring 1960s model Twiggy, singers Myleene Klaas and Bryan Ferry and other celebrities. | The improved performance was driven by stronger demand for M&S food and clothing, which was supported by an advertising campaign featuring 1960s model Twiggy, singers Myleene Klaas and Bryan Ferry and other celebrities. |
| Announcing the results, M&S said it will reward its staff for helping revive the brand with a bonus of £91m, including £26m for customer assistants. | Announcing the results, M&S said it will reward its staff for helping revive the brand with a bonus of £91m, including £26m for customer assistants. |
| Speaking to BBC Breakfast this morning, M&S chief executive Stuart Rose said that while stage one of the recovery process was complete there was still more work to do be done. | Speaking to BBC Breakfast this morning, M&S chief executive Stuart Rose said that while stage one of the recovery process was complete there was still more work to do be done. |
| "The next step is broadening the business, creating new and exciting products for customers, and new and exciting experiences for customers," he said. | "The next step is broadening the business, creating new and exciting products for customers, and new and exciting experiences for customers," he said. |
| "We continue to improve our product ranges, offering customers better quality, value, innovation and newness," Mr Rose added. | "We continue to improve our product ranges, offering customers better quality, value, innovation and newness," Mr Rose added. |
| See live M&S share price M&S to charge for bags in NI | See live M&S share price M&S to charge for bags in NI |
| The former Arcadia boss is widely credited for turning around the company's fortunes when he took over in 2004, saving M&S from a takeover by millionaire entrepreneur and Arcadia owner Sir Philip Green. | The former Arcadia boss is widely credited for turning around the company's fortunes when he took over in 2004, saving M&S from a takeover by millionaire entrepreneur and Arcadia owner Sir Philip Green. |
| M&S reported a 6.1% increase in underlying UK sales, with new stores stripped out, and in 240 stores overseas, sales were up 16.8%. | M&S reported a 6.1% increase in underlying UK sales, with new stores stripped out, and in 240 stores overseas, sales were up 16.8%. |
| As a result, the company increased its UK market share in both food and clothing. | As a result, the company increased its UK market share in both food and clothing. |
| It now has 11.1% of the UK clothing market, an increase of 0.7%, while its food market share rose 0.2% to 4.3%. | It now has 11.1% of the UK clothing market, an increase of 0.7%, while its food market share rose 0.2% to 4.3%. |
| M&S hopes its planned expansion and an extensive refurbishment programme - 70% of stores are expected to be remodelled by Christmas - will boost sales further. | M&S hopes its planned expansion and an extensive refurbishment programme - 70% of stores are expected to be remodelled by Christmas - will boost sales further. |
| M&S profit peak? | M&S profit peak? |
| M&S plans to create 10,000 new jobs in the UK over the next three years. | M&S plans to create 10,000 new jobs in the UK over the next three years. |
| Future growth is expected to be helped by business expansion in overseas markets and online, underscored by the appointment of co-founder of Lastminute.com Martha Lane Fox as a non-executive director starting 1 June. | Future growth is expected to be helped by business expansion in overseas markets and online, underscored by the appointment of co-founder of Lastminute.com Martha Lane Fox as a non-executive director starting 1 June. |
| The company is well positioned with clothing and food to ride a likely retail downturn better than most Richard Ratner, Seymour Pierce | The company is well positioned with clothing and food to ride a likely retail downturn better than most Richard Ratner, Seymour Pierce |
| The group said sales from its website, which was relaunched in March and now carries the full Per Una range, grew by 60% over the year to make it one of the most visited in the UK, | The group said sales from its website, which was relaunched in March and now carries the full Per Una range, grew by 60% over the year to make it one of the most visited in the UK, |
| Mr Rose also gave an update on its five-year plan to make the company carbon neutral. | Mr Rose also gave an update on its five-year plan to make the company carbon neutral. |
| He said that two ecologically friendly factories were being developed, one in Sri Lanka to manufacture lingerie and another in North Wales to make upholstery for furniture. | He said that two ecologically friendly factories were being developed, one in Sri Lanka to manufacture lingerie and another in North Wales to make upholstery for furniture. |
| Some analysts believe the group will weather a deteriorating consumer outlook to deliver more profit growth. | Some analysts believe the group will weather a deteriorating consumer outlook to deliver more profit growth. |
| "Although life will get tougher with strong comparatives for the first three quarters, the company is well positioned with clothing and food to ride a likely retail downturn better than most," said Richard Ratner of Seymour Pierce. | "Although life will get tougher with strong comparatives for the first three quarters, the company is well positioned with clothing and food to ride a likely retail downturn better than most," said Richard Ratner of Seymour Pierce. |