Despite challenging economic conditions, Marks & Spencer propped up with excellent strategic plans, reported their group sales growth by 2 per cent to £9.9bn for the FY ending 31 March, 2012.
Total sales in UK increased 1.5 per cent, whereas like-for-like sales in UK grew by 0.3 percent. Performing well in the world market, company registered a growth of 5.8 per cent as compared to last year. The underlying basic earnings per share jumped to 134.9p which was 34.8p last year. Basic earnings per share were reported as 32.5p as compared to 38.8p in the previous year. With strong performance, net debt of the company reduced to £1.86bn from last year figure of £1.90bn. However, the profit before tax was reported a little less as £658.0m as compared to £780.6m last year.
Marc Bolland, Chief Executive, Marks & Spencer said, “We managed the business prudently with tight control of costs and capital investment, delivering earnings in line with last year, and substantial efficiency savings in our capital investment plans. Whilst the economic environment has deteriorated since we first set out our strategic plans, we have made significant progress. Our UK pilot stores are delivering good results, which has given us the confidence to launch phase two of the programme.”
Commenting on the excellent results, Robert Swannell, Chairman of the company said, “We have a clear strategy for the business. We remain focused on delivering this strategy effectively and efficiently. In line with the dividend policy set out last year, the Board is recommending a final dividend of 10.8p per share, resulting in an unchanged full year dividend of 17p per share.”
The company claims their wonderful strategic plans including supply chains and IT programme implementation as the reason behind company’s outstanding results. Maintaining their market share2 in Clothing and Food, Marks & Spencer managed an overall savings of £300m in capital investment over three years. Keeping a strong hold in the market, the company’s foods availability increased by 2 per cent and net waste reduced by 10 per cent. By the end of 2012, the company will be transacting from 10 websites worldwide and opening around 100 international stores per year.
Marks & Spencer is UK’s retailer that offers clothing and homeproducts, as well as quality foods, sourced from around 2,000 suppliers globally. They have over 700 UK stores. M&S is also a provider of womenswear and lingerie in the UK, and is growing their market share in menswear, kidswear and home. Now more than ever, we’re also known for our green credentials as a result of our five-year eco plan, Plan A, which will see us, amongst other things, become carbon neutral and send no waste to landfill by 2012.