Marks & Spencer Grp (MKS) - Final Results - Year End 31 Mar 2021

[IanTHughes]

Can be found here:

https://www.investegate.co.uk/marks---s ... rp%20Alert

Resilient financial performance in a year of disruption

● Profit before tax & adjusting items of £41.6m (53 weeks £50.3m)
● Statutory loss of £201.2m (53 weeks £209.4m)
● Food LFL revenue up 1.3%, underlying LFL ex-hospitality and franchise up 6.9%
● C&H revenue down 31.5%. Online growth of 53.9% partly offsetting stores down 56.2%
● Group online revenue ex-Ocado now £1.5bn
● Ocado Retail share of net profit £78.4m
● Net debt excluding lease liabilities reduced £278.6m to £1.11bn and strong liquidity

Forging a reshaped M&S through the Never the Same Again programme

● M&S Food growth supported by improved value perception and over 1,900 new lines
● M&S products now over 25% of Ocado average basket and c.50% capacity growth planned
● Clothing & Home business reshaped with shift to active and casual and more focused ranges
● MS2 created to accelerate the shift to omni-channel with an online first approach
● Sparks relaunch hits 10m members with substantially improved data capabilities
● Accelerated opportunity to rotate the store estate into higher quality space

Steve Rowe, CEO

"In a year like no other we have delivered a resilient trading performance, thanks in no small part to the extraordinary efforts of our colleagues. In addition, by going further and faster in our transformation through the Never the Same Again programme, we moved beyond fixing the basics to forge a reshaped M&S. With the right team in place to accelerate change in the trading businesses and build a trajectory for future growth, we now have a clear line of sight on the path to make M&S special again. The transformation has moved to the next phase."

The above-mentioned resilient performance notwithstanding ...

Dividend

We did not pay a final dividend for 2019/20 and the Board has previously announced the decision not to pay a dividend for the 2020/21 financial year.

Enjoy!

Ian

[moorfield]

Dividend

We did not pay a final dividend for 2019/20 and the Board has previously announced the decision not to pay a dividend for the 2020/21 financial year.

As they say, Forging a reshaped M&S through the Never the Same (Dividend) Again programme ?

[csearle]

I was so pissed off with MKS not re-instating their dividends that, when their share price rose (?!?) this morning I sold my entire holding before setting off to work.

I forgave them the pandemic effect but didn't forgive them for using it as an excuse to alter their fundamental dividend policy.

Bastards.

Chris

[idpickering]

I was so pissed off with MKS not re-instating their dividends that, when their share price rose (?!?) this morning I sold my entire holding before setting off to work.

I forgave them the pandemic effect but didn't forgive them for using it as an excuse to alter their fundamental dividend policy.

Bastards.

Chris

I don't blame you Chris. We should run our HYPs however each of us please, but you're very brave to mention the sale hereabouts.
As for MKS, I sold out of them years ago, having given up of that type of retailer. I don't mind having both Tesco and Sainsbury's on board my HYP though. Now, where's my flak jacket?.....

Ian.

[csearle]

I don't blame you Chris. We should run our HYPs however each of us please, but you're very brave to mention the sale hereabouts.

They cut their dividends completely then didn't reinstate them after the special situation. As I'm a tinkerer that, for me, makes them fair game for replacing using "my" normal HYP procedure. C.

[IanTHughes]

I was so pissed off with MKS not re-instating their dividends that, when their share price rose (?!?) this morning I sold my entire holding before setting off to work.

I forgave them the pandemic effect but didn't forgive them for using it as an excuse to alter their fundamental dividend policy.

Bastards.

Now now ... that is hardly appropriate language for a moderator Mind you, we have all had those thoughts from time to time.

I don't blame you Chris. We should run our HYPs however each of us please, but you're very brave to mention the sale hereabouts.

Oh I don't think a strategy involving the occasional single sale would be criticised.

On no, the strategy employed would have to incur frequent sales, maybe of multiple holdings at the same time, to be considered a bit infra dig around here. Perhaps three or four in the same month? Certainly any more than that and the strategy could not be considered an HYP Strategy. A Churning High Yield Strategy, maybe, but not an HYP Strategy. Not in my opinion anyway.

But who would trade that much and report it on here, the HYP Practical board? Not an HYPer I'd warrant.


Ian

[idpickering]

But who would trade that much and report it on here, the HYP Practical board? Not an HYPer I'd warrant.

Ian

You're entitled to your opinion, and I'm entitled to mine. Nuff said.

Ian.

[IanTHughes]

But who would trade that much and report it on here, the HYP Practical board? Not an HYPer I'd warrant.

You're entitled to your opinion, and I'm entitled to mine. Nuff [sic] said.

You disagree I take it?

Fair enough but can I ask what level of trading would you need to see in order to describe the strategy as involving "churning"?


Ian

[Matchless]

Surely all strategies combine and overlap in some circumstances for some people at some times?

[tjh290633]

But who would trade that much and report it on here, the HYP Practical board? Not an HYPer I'd warrant.

Come off it, Ian. I have posted disposals on this board in the past, and it is very much an HYPer sort of action. I have rules about disposals, which is that, if a share's yield falls below about half that of the FTSE100, I will get rid of it. In the case of shares which stop paying dividends, if there is a prospect of resumption in the relatively near future, then I will retain it for recovery, as in the case of MKS.

I have also had multiple successive trimmings culminating in a complete disposal, also reported on this board at TMF.

From memory, IHG and Whitbread were such cases.

We are all entitled to our own views about what to hold, what to buy and what to sell, and when. There is no need to criticse such views, even if they offend your "purist" approach.

TJH

[IanTHughes]

But who would trade that much and report it on here, the HYP Practical board? Not an HYPer I'd warrant.

Come off it, Ian. I have posted disposals on this board in the past, and it is very much an HYPer sort of action. I have rules about disposals, which is that, if a share's yield falls below about half that of the FTSE100, I will get rid of it. In the case of shares which stop paying dividends, if there is a prospect of resumption in the relatively near future, then I will retain it for recovery, as in the case of MKS.

I have also had multiple successive trimmings culminating in a complete disposal, also reported on this board at TMF.

From memory, IHG and Whitbread were such cases.

We are all entitled to our own views about what to hold, what to buy and what to sell, and when. There is no need to criticse such views, even if they offend your "purist" approach.

I was not criticising anyone but simply trying to find out what number of trades idpickering would consider as over-trading such that a strategy might not be called HYP. A strategy that as far as I am aware, recommends little if any sales at all. All I know so far is that idpickering believes it to be more than six in a month.

But I do agree with you in that I should also have asked what triggers for those sales would be seen as acceptable, such that one might still consider such a portfolio as an HYP? Is it Low Yield, High Value, Low Yield AND High Value? As far as I am aware idpickering has not advised on this point either.

And yes, I do understand your variety of HYP and the triggers that you use for sales. I do not entirely agree with it, but I do understand it. All I am trying to do is also understand the variety of HYP that idpickering follows.


Ian

[idpickering]

Come off it, Ian. I have posted disposals on this board in the past, and it is very much an HYPer sort of action. I have rules about disposals, which is that, if a share's yield falls below about half that of the FTSE100, I will get rid of it. In the case of shares which stop paying dividends, if there is a prospect of resumption in the relatively near future, then I will retain it for recovery, as in the case of MKS.

I have also had multiple successive trimmings culminating in a complete disposal, also reported on this board at TMF.

From memory, IHG and Whitbread were such cases.

We are all entitled to our own views about what to hold, what to buy and what to sell, and when. There is no need to criticse such views, even if they offend your "purist" approach.

TJH

Thank you for your level-headed post Terry. Enough said on that subject methinks. Each to their HYP own. I shan’t be responding to t’other Ian’s baiting any further. If he gets offensive the posts will be reported, and that’s that.

Ian.

[chris]

I was so pissed off with MKS not re-instating their dividends that, when their share price rose (?!?) this morning I sold my entire holding before setting off to work.

I forgave them the pandemic effect but didn't forgive them for using it as an excuse to alter their fundamental dividend policy.

Thank you Chris. I have been more than concerned about M&S management for some time. They seemed to think that it was 'funny' a couple of years ago to undermine the 'it's not food, it's M&S food' advertising campaign and I think that my concern that they simply did not understand the M&S brand was crystallised by their major advertising of 'salt & vinegar sausages' and some savoury doughnut thing that I would expect to be advertised by Iceland.

The clothing side of the stores that I have been to look like a jumble sale and it would seem that they do not have good buyers or presentation experts.

It is always hard selling a share when you are 50% down but with no dividend and an incompetent management, I have followed your lead Chris and sold out today. I cannot see this one improving in the short to medium term.

Chris

[Wizard]

But who would trade that much and report it on here, the HYP Practical board? Not an HYPer I'd warrant.

Come off it, Ian. I have posted disposals on this board in the past, and it is very much an HYPer sort of action. I have rules about disposals, which is that, if a share's yield falls below about half that of the FTSE100, I will get rid of it. In the case of shares which stop paying dividends, if there is a prospect of resumption in the relatively near future, then I will retain it for recovery, as in the case of MKS.

I have also had multiple successive trimmings culminating in a complete disposal, also reported on this board at TMF.

From memory, IHG and Whitbread were such cases.

We are all entitled to our own views about what to hold, what to buy and what to sell, and when. There is no need to criticse such views, even if they offend your "purist" approach.

TJH

My bold.

My guess is that the crux of the matter is when such buying and selling is beyond the scope envisaged in the guidelines, where they say:

It is acknowledged that individual HYP investors may from time to time see the need to sell individual HYP stocks, perhaps in response to adverse performance, portfolio imbalance, or a corporate action, e.g. takeover. It is further acknowledged that it would be unrealistic to rule that discussion of such actions is outside the board’s remit. It is stressed, however, that HYP investing was always intended to be a LTBH strategy.

I think the point being that everyone has a perfect right to manage their portfolio how they see fit, but just because they say it is an HYP does not mean everyone will agree that it is. It is a difficult area because it is open to more interpretation than some of the other explicitly defined characteristics of an an HYP.

[moorfield]

My guess is that the crux of the matter is when such buying and selling is beyond the scope envisaged in the guidelines,

It is a difficult area because it is open to more interpretation than some of the other explicitly defined characteristics of an an HYP.

This was why I thought to start the churn thread. We can try to make some progress there perhaps towards understanding who sells and buys more actively than others, on the average, and why, if enough folk are willing to post their numbers up...

[idpickering]

Come off it, Ian. I have posted disposals on this board in the past, and it is very much an HYPer sort of action. I have rules about disposals, which is that, if a share's yield falls below about half that of the FTSE100, I will get rid of it. In the case of shares which stop paying dividends, if there is a prospect of resumption in the relatively near future, then I will retain it for recovery, as in the case of MKS.

I have also had multiple successive trimmings culminating in a complete disposal, also reported on this board at TMF.

From memory, IHG and Whitbread were such cases.

We are all entitled to our own views about what to hold, what to buy and what to sell, and when. There is no need to criticse such views, even if they offend your "purist" approach.

TJH

Thank you for your level-headed post Terry. Enough said on that subject methinks. Each to their HYP own. I shan’t be responding to t’other Ian’s baiting any further. If he gets offensive the posts will be reported, and that’s that.

Ian.

Regarding my reply above, I want to withdraw the word ‘offensive’ and replace it with ‘personal attack’. It sounds more appropriate. That’s it from me on this anyway.

Ian.

[blobby]

About the dividend CEO Steve Rowe said:

As we recover balance sheet metrics consistent with investment grade, we will assess the reintroduction of dividend payments, although as we focus on restoring profitability this is unlikely in the current year.

M&S made a loss last year so I don’t think a dividend is a good idea either. However I am optimistic that trading will improve this year and they will quickly find their feet in a new retail environment having started adapting some time ago. Once they are on an even keel, I think the dividend will resume quickly.