Marks and Spencer Group PLC (MKS)

[pje16]

Marks & Spencer pulls out of Russia after 17 years
https://www.bbc.co.uk/news/business-61575556

[pje16]

Marks & Spencer Group PLC - London-based food and clothing retailer - Tenders a total of GBP350.3 million in share buyback of notes. GBP100.6 million of 3% notes are due in 2023, while GBP249.7 million of 4.75% notes are due in 2025. "The expected tender offer settlement date is June 6, 2022," the company explains.

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[Dod101]

Which I suppose helps explain why they are still not paying a dividend. They are tidying up their Balance Sheet instead.

Dod

[pje16]

Good thought Dod
I'd prefer a divi

[Dod101]

Good thought Dod
I'd prefer a divi

In their latest results announcement they say that they have delayed reinstating the dividend in order to improve the Balance Sheet metrics to regain their investment grade status, so I think my comment is probably valid; they are reducing their debt instead of paying a dividend. I am not a shareholder, but it seems to me that a shareholder cannot really argue against that.

Dod

[pje16]

That sounds fair enough, thank you for that
I have a modest holding, nothing to worry about either way

[pje16]

(Alliance News) - Marks & Spencer Group PLC on Thursday said it has bought Gist Ltd as part of its acceleration plan to transform its food supply chain.

The London-based food and clothing retailer has acquired Gist from Storeshield Ltd, a subsidiary BOC Group Ltd, which in turn is a part of Linde PLC.

M&S is buying Gist for an initial GBP145 million in cash and a further GBP85 million, plus interest, will be payable on the third anniversary of completion at the latest. Up to GBP25 million plus interest will also be payable "under certain conditions".

Gist is the principle contract logistics business to M&S Food. It offers customers primary logistics from supplier to depot, and secondary logistics services from depot to store. It generated pro-forma earnings before interest, tax, depreciation and amortisation of GBP55 million in 2021.

The acquisition is expected to be accretive in M&S's earnings per share in the next year and accelerate its "multi-year plan to modernise its food supply chain network to support growth," it said.

"The acquisition will generate immediate benefits to M&S through the elimination of contractual fees and costs and the implementation of aligned operational processes," M&S added.

Chief Executive Stuart Machin said: "M&S has been tied to a higher cost legacy contract, limiting both our incentive to invest and our growth. The last two years have shown what can be achieved by working collaboratively alongside our partners at Gist. This has given me confidence that now is the time to take action and remove an impediment to our growth. We have therefore acted decisively to acquire Gist, taking control of our Food supply chain for the first time in our history."

Earlier on Thursday, M&S said Chief Financial Officer Eoin Tonge will leave for Primark-owner Associated British Foods PLC.

Tongue has been chief financial officer at M&S for the past two years. Back in May, he also picked up enhanced responsibilities as chief strategy officer following the departure of Chief Executive Officer Steve Rowe.

The London-based clothing, homeware and food retailer said it will kick off a search for a replacement. It added that Tonge will serve his notice period, which includes the firm's interim results in November.

Shares were down 1.9% at 140.65 pence each on Thursday morning in London.

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[pje16]

Marks & Spencer Group PLC has said it is seeking to speed up a major shake-up of its stores estate which will result in the closure of 67 more shops.

The retailer stressed that the previously announced closures will be more than offset by new openings as the group seeks to focus more on its grocery business and online operations.

Shares in M&S fell 6.0% to 92.92 pence each in London on Wednesday afternoon.

In 2019, M&S confirmed long-term plans to axe 110 stores as part of a sweeping overhaul under previous boss Steve Rowe.

In a presentation to investors, the retail giant has said there are a remaining 67 “lower productivity, full line stores” it will close over the next five financial years.

It added that the company will now seek to speed up this transformation plan with an aim of completing the store's shake-up over three years.

The move will also see the retailer open 104 more Simply Food outlets over the same period, with many expected to reopen in the same area or location as sites earmarked for closure.

M&S has not detailed which locations or how many jobs will be affected by the plans.

The company said it has “made some progress to date" on the transformation of its stores' portfolio but has further to go, as it seeks to complete the plan with 180 full-line branches and 420 food shops.

The plan will result in a 20% reduction in retail space dedicated to clothing and home products, amid significant online growth.

The shake-up also comes as part of a wider overhaul which will see M&S aim to deliver around GBP400 million in cost savings.

It comes under the leadership of recently-appointed chief executive officer Stuart Machin and co-chief executive officer Katie Bickerstaffe.

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[GrahamPlatt]

‪pje16 » ‬July 21st, 2022, 12:27 pm

Shares were down 1.9% at 140.65 pence each on Thursday morning in London.

‪pje16 » ‬October 12th, 2022, 5:39 pm

Shares in M&S fell 6.0% to 92.92 pence each in London on Wednesday afternoon.

Ouch. It’s not even as though one could accuse them of using capital to pay the divi!

[idpickering]

Half Year Results for 26 Weeks Ended 1 October 2022.

Strong trading performance

· Profit before tax & adjusting items £205.5m (2021/22: £269.4m)

· Food sales up 5.6%; strong growth in franchise & hospitality, with other categories well ahead of 19/20

· Food adjusted operating profit £71.8m reflecting value investment and cost pressures

· Clothing & Home sales1 up 14.0% with store sales up 18.8%, online up 4.9% against strong comparatives

· Clothing & Home adjusted operating profit £171.4m; reflecting strong sales growth and full price mix

· Ocado Retail loss of £0.7m (2021/22: profit £28.1m) as demand reverts and capacity grows

· International constant currency sales up 13.7%; operating profit before adj. items £39.0m

· Statutory profit before tax of £208.5m (2021/22: £187.3m)

https://www.investegate.co.uk/marks-and ... 00077607F/

Ian.

[daveh]

and

Dividend

At the full-year results in May 2022, we stated that the board would consider the scale and timing of a resumption of dividend payments closer to the year end. Consistent with that announcement, we have not declared a dividend at these results.

Share price down another 2% today so not well received by the market. They didn't look too bad except for the loss at Ocado.

[idpickering]

Christmas 2022/2023 Trading.

M&S Food outperformed the market on volume and value in the critical four-week Christmas period for the second year running and reached its highest ever recorded market share. Clothing and Home delivered another outstanding performance, maintaining its market leadership position with its highest market share in seven years.

This outperformance was driven by M&S doing what it does best; exceptional product at value you can trust. Thanks to our unrivalled quality, innovation and growing style credentials, more customers shopped with M&S over the Christmas period than in recent years. I would like to thank all our colleagues for the fantastic service they delivered.

We saw the benefits of the acceleration in the steps we're taking to reshape M&S as an omnichannel retailer supported by an increasingly promising store rotation programme. Our new full line and renewal stores outperformed expectations, while click and collect orders increased 20%, and the competitive advantage of M&S's omnichannel platform was demonstrated by delivering c.50% growth in third party brand sales. This was supported by substantial growth in monthly active App users to c.5m.

Given the inflationary pressures impacting our customers and our business, M&S is taking action to structurally reduce costs and reinforce our customer proposition. Our singular focus is on delivering the M&S Reshaped programme to drive growth and value creation as the UK's leading omnichannel retailer. This performance across both our businesses provides confidence in delivering our full year results. "

https://www.investegate.co.uk/marks-and ... 00034626M/

Ian, who doesn't hold MKS.

[pje16]

Ian, who doesn't hold MKS.

Thanks, Ian
from Paul who does

[idpickering]

Ian, who doesn't hold MKS.

Thanks, Ian
from Paul who does

You're welcome Paul. I see that as of now MKS are down 1.6% in SP terms. imho, that isn't too bad?

Ian.

[Dod101]

So far all the food supermarkets seem to be outperforming the market in Christmas trading. There is something wrong somewhere.

Dod

[pje16]

You're welcome Paul. I see that as of now MKS are down 1.6% in SP terms. imho, that isn't too bad?

Ian.

Agreed Ian
and Tesco are down by about the same percentage (1.23)

[idpickering]

M&S to open 20 new shops across the UK creating 3,400 jobs.

M&S has unveiled its £480m investment in bigger, better stores across the UK, already identifying a pipeline of 20 new stores to be opened in the next financial year.

The department store retailer’s investment will create over 3,400 new jobs across the country and aims to create a fit for the future M&S store estate and a seamless experience for its customers.

At its recent investor day, M&S shared its ambition to accelerate a five-year store rotation programme and target delivery within three years by 25/26.

https://www.retailgazette.co.uk/blog/20 ... -rotation/

Ian (no holding).

[pje16]

M&S chair says UK's "baffling" post-Brexit plans will wreck trade
Marks & Spencer Group PLC's chair has become the latest business leader to criticise the UK government's economic policy, with Archie Norman calling plans to ease post-Brexit trade "overbearing" and "baffling".

Norman, who is also an ex-Conservative MP, has urged the foreign secretary during talks with the EU not to consider separate labelling for goods sold in Northern Ireland.

“The overbearing costs of a labelling regime would raise prices and reduce choice for consumers, further disadvantage UK farmers and suppliers and impact UK retailers' competitiveness in other international markets," Norman wrote according to excerpts obtained by the Telegraph.

“The simple fact is retailers already operate in real-time digital information – day or night, at the click of a button, we can locate our products, be that in a depot, in transit or in a store.

“In a digital era – when one tap of a mobile can check-in a customer at a store and locate their order in under 60 seconds, it's baffling that the government and EU have rewound four decades to discuss an expensive 'solution' involving stickers & labelling."

Both the UK and EU are keen to strike a deal to break the logjam over Brexit's Northern Ireland Protocol before April's landmark 25th anniversary of Northern Ireland's historic Good Friday peace agreement.

But Northern Ireland Secretary Chris Heaton-Harris on Wednesday insisted London is not setting any deadlines on the talks over the contentious trading arrangements.

The DUP is currently blocking the functioning of power-sharing at Stormont and has made clear it will not allow devolution to return unless major changes to the protocol are delivered.

An agreement between the EU and UK would not guarantee the restoration of devolution, as the DUP may ultimately reject it and continue with its Stormont boycott.

Norman said in May that EU proposals for administering the protocol are "highly bureaucratic and pretty useless" given UK food standards are “equivalent or higher" than those set by Brussels.

He told BBC Radio 4's Today programme at the time that the bloc was suggesting that the same background checks, including veterinary checks, required for the Republic of Ireland are also needed to send goods from other parts of the UK to Northern Ireland.

“Incidentally that means that every piece of butter in a sandwich has to have an EU vet certificate, so it's highly bureaucratic and pretty pointless," he said.

Norman's latest criticism of the government's plans as "baffling" follow billionaire businessman James Dyson calling out Rishi Sunak last week for a "short-sighted" approach to business.

The founder and chief engineer of the Singapore-based multinational technology company Dyson called on Sunak and Chancellor Jeremy Hunt to use the spring budget to "incentivise private innovation and demonstrate its ambition for growth".

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[idpickering]

Full Year Results for 52 Weeks Ended 1 April 2023.

Strong trading results

· Profit before tax & adjusting items of £482.0m (2021/22: £522.9m, including £59.8m UK business rates relief)

· Statutory profit before tax of £475.7m (2021/22: £391.7m)

· Clothing & Home sales1 up 11.5% to £3.72bn; Store sales up 14.9%, online up 4.8%; Strong growth in Click & Collect

· Clothing & Home adjusted operating profit £323.8m (2021/22: £330.7m, including £35.2m rates relief)

· Food sales up 8.7% to £7.22bn. Strong growth across core categories, hospitality and franchise

· Food adjusted operating profit £248.0m (2021/22: £277.8m, including £24.6m rates relief)

· Ocado Retail share of loss £29.5m (2021/22: share of profit £13.9m); capacity for future growth

· International constant currency sales up 11.2%; adjusted operating profit £84.8m (2021/22: £73.6m)

And later;

The Group suspended dividend payments at the start of the pandemic to protect the balance sheet. This enabled it to invest in its transformation priorities and trusted value. Consistent with that announcement, the Board does not expect to pay a dividend in 2022/23.

However, with the business generating an improved operating performance and having a strengthened balance sheet with credit metrics consistent with investment grade, the Board plans to restore a modest annual dividend to shareholders starting with an interim dividend with the results in November.

https://www.investegate.co.uk/announcement/7540094

Ian (No holding).

[idpickering]

Trading Update and Outlook for the Year.

The first 19 weeks of the year1 has seen continued market share growth in both the Clothing & Home and Food businesses, and good progress on the programme to reshape M&S.

· Like-for-like Food2 sales grew over 11%. We made further investment in quality and trusted value, sharpening prices on over 80 'Remarksable Value' lines.

· Like-for-like Clothing & Home sales grew over 6%, with strong growth in stores, and more subdued growth in online. Sell through rates have been robust and stock into sale was lower than planned.

Overall, group operating margin has continued to be robust, driven by strong store performance and enhanced by our store rotation and renewal programme.

There remain considerable uncertainties about the economic outlook, and there is a risk that the consumer market will tighten as the year progresses. Nevertheless, we now expect the outcome for the year to show profit growth on 2022-23, and the interim results to show a significant improvement against previous expectations.

Interim results, for the 26 weeks ending 30 September will be reported on 8 November 2023.

https://www.investegate.co.uk/announcem ... ar/7695809

Ian (No holding).