Marks and Spencer sees profits drop

published 22 May 2012

High Street giant Marks and Spencer saw profits drop by 15.7 per cent in the year ended March 31st due to higher impairments of assets and strategic programme costs.

Statutory pre-tax profit fell from £780.6m to £658m as non-underlying items had a £47.9m adverse impact, compared with a £66.3m gain the year before. Nevertheless, the market consensus was for £693m. On an underlying basis, pre-tax profit fell by just 1.2% from £714.3m to £705.9m.

Group revenue increased by 2% from £9,740.3m to £9.934,3m, shy of the £9.97bn forecast, owing to weakness in General Merchandise sales. Food and international sales were strong though.