Good results at M&S put 26p on shares

SHARES in the Marks & Spencer retailing group rose 26p to 459p, just below their all time high of 463p, on positive full figures and boardroom comment on prospects together with a 10.7 per cent increase in the dividend payout.

Overall, pre tax profits on continuing business rose 7.2 per cent to £994 million sterling and would have topped £1 billion had additional pension costs not been incurred. Turnover rose 6.3 per cent to £7.21 billion.

Outlets in the Republic and in Northern Ireland continued to increase their contributions to the group's financial results on the back of buoyant sales. The group is intensifying the search for suitable sites on which to locate new stores.

The new 45,000 sq 11 store in the Foyleside Centre in Derry has experienced "very successful" trading since - its opening last September. The store complements outlets in Bangor, Co Down, Ballymena and Lisburn Co Antrim and Belfast.

In Dublin, the former Brown Thomas store on Grafton Street is to be re opened as a 67,000 sq ft store at the end of September. The existing 16,800 sq ft store on Grafton Street will then close.

M&S's general manager in Ireland, Mr Geoff Rowbotham, said that the past year had seen major growth in both the company's food and textiles operations in Ireland. As well as opening the new Grafton Street store in September, Mr Rowbotham said that the group had agreed to a linking mall with the new Jervis Street Centre, which was also due to open in the autumn.

Although there was no comment on the search for new sites in Ireland, M&S is anxious to build its market share before competition from Tesco and Sainsbury's becomes firmly established in Northern Ireland.

Sir Richard Greenbury, chairman of M&S, commenting on the results, said that the group "maintained market share and margins". Operating profits in the UK taking in the Northern Ireland outlets rose 4.5 per cent to £885 million sterling after putting an extra £18 million into the pension scheme. Turnover rose 4.7 per cent to £5.86 billion. Food sales in the UK increased 5.4 per cent in the face of "fierce competition".

Trading figures for continental Europe which take in the Republic were adversely affected by difficult economies and the combined effects of industrial action and terrorist activity focused on Paris and Lyon. Operating profit of European stores fell 5.2 per cent to £25.7 million on turnover up 13.3 per cent at £408 million.