THE Marks & Spencer retailing growth machine produced another boringly predictable set of annual results this week, confirming its position as Britain's most profitable retailer. Annual pre tax profits would have exceeded £1 billion sterling but for a £90 million provision to top up its pension fund following tax changes.
While that particular milestone will have to wait until next year, the results had has good news for everyone, from shareholders to staff. Profit growth of 7 per cent to £994 million on increased turnover of £7 billion provides shareholders with a 10.7 per cent increase in dividends to 11.4p a share. All staff are to receive an average wage increase of 4.5 per cent with. More than 1,000 new jobs planned next year in addition to the 1,500 jobs created last year. The group is planning to add a further half a million square feet of retailing space in the UK and Europe this year.
Outlets in the Republic and Northern Ireland continue to perform well, with growth in both food and textile sales. The group, anxious to build market share, is looking for new sites. M&S will take 80,000 sq ft of selling space in the new Quarryvale shopping complex west of Dublin close to the N4 route to the west, a commitment substantially bigger than the 67,000 sq ft store being developed on the former Brown Thomas site in Grafton Street.
The chairman, Sir Richard Greenbury, says he constantly keeps an eye on the competition, shops in their stores and believes their chairman also shop in M&S. "We've all got a healthy respect for each other, but I'm not frightened of them."
