Cityam 2015-05-21

cityam.comTHURSDAY 21 MAY 2015Marks & Spencer smartens upNEWS5Marc Bolland saysturnaround plan isfinally working asprofit rises, writesKasmira JeffordMARKS & Spencer chiefexecutive Marc Bolland wascautiously optimisticyesterday that the high streetstalwart had turned a corner towardsrecovery, as the retailer posted its firstprofit rise in four years.The retailer, which has been battlingto revive its clothing arm, reported a6.1 per cent rise in pre-tax profits to£661.2m in the year to 28 March.This beat analyst expectations of£642m of profits – but was still shortof the £1bn profit it made in 2008.It also raised its dividend 5.9 per centto 18p and announced a £150m sharebuyback for investors who have hadto wait patiently since the last buybackin 2007.Speaking at the London Stock Exchangeyesterday, Bolland said: “Weknew where we were going and thisis clearly a step by step approach andwe have clearly made a step forwardand clearly in the right direction.”Revenue was flat at £10.3bn with a0.6 per cent rise in like-for-like salesacross its food division offset by a 3.1per cent decline in underlying salesin general merchandise, which spansMarc Bolland withBritish model RosieHuntington-Whiteley5505004504003506.1%PROFIT UPMay 2010Bolland joinsM&S500Suede skirts (picturedright) sold in first 24hours18%DRESS ANDSKIRT SALESUPPNovember 2011M&S returns toFrance after a10-year absenceMay 2013M&S unveils worstprofit in four years.Launches “make orbreak” schemeSeptember 2013Leading ladiescampaign launcheswith celebs includingHelen MirrenFebruary 2014Launches new £150mwebsite platform, twoyears in the making£150mSHAREBUYBACK5.9%DIVIDENDHIKEJanuary 2015Warehouse woes andwarm weather hit sales0.6%FOOD LIKE-FOR-LIKE UP583.5020 MayApril 2015M&S halts slump inclothing sales andshares reach sevenyearhighMay 2010 2011 20122013 2014 May 2015clothing, footwear and homeware.However, fourth-quarter sales of generalmerchandise rose 0.7 per cent atstores open more than a year, representingthe division’s first positive performancein 15 quarters.The results are likely to come as arelief for the 56-year-old Dutchman,who has been under intense pressureto show that his overhaul of the retailer’sclothing business and its productrange is bearing fruit.When he took over as chief executivein 2010, Bolland set out ambitious targetsto add more than £2.5bn of newsales. However, less that two years laterthat was scaled back to between£1.1bn and £1.7bn and then eventhose targets were missed, as Marks &Spencer reported its first annual profitfall in three years.Bolland’s efforts to revive sales at itsstruggling clothing arm have comeagainst a backdrop of billions ofpounds of investment into revampingits website, shrinking its distributionnetwork of 100 UK warehouses and‘We have clearlymade a step forwardand clearly in the rightdirectionoverhauling its outdated IT systems.Bolland said yesterday that it couldhave increased profits three years agobut the company had decided to investover £1bn into its outdated legacy systems.“If I had kicked that in the long grassand said: ‘You know what. Think aboutthat in five years time,’ all that wewould have made would be £100m extraprofits,” he said.The upturn in profits and recent improvementin the share price hassparked some people to questionwhether Bolland might take this opportunityto leave on a high note.However, Bolland said he had noplans to leave any time soon, insistinghe want to see his plans through and“absolutely” expected to be present atthe results next year.“I have enjoyed my time at this companyand I am now enjoying the executionphase of the strategy,” he said.15% OFFBritish Summerhawesandcurtis.co.ukEXCLUSIVELYFOR CITY AM READERST&Cs: Offer valid from May 28th to June 8th 2015. This offer canbe redeemed in-store and online using code CITY15 at checkout.This offer can be used on our multi-buy offers but not inconjunction with other promotions, vouchers or discounts.We reserve the right to amend the offer at any time.