Marks and Spencer Group Plc Reports Full Year Results 2013/14

Marks and Spencer Group Plc reports full year results 2013/14 for the 52 weeks ended 29 March 2014.

Highlights:
Full year results:
• Group sales up 2.7%1 at £10.3bn
• Total UK sales +2.3%: Food +4.2%; General Merchandise 0.0%
• Like-for-like UK sales +0.2%: Food +1.7%; General Merchandise -1.4%
• International sales +6.2%1
• Multi-channel sales +22.8%
• Underlying profit before tax2 -3.9%3 to £623m
• Statutory profit before tax +6.1%3 to £580m
• Underlying basic earnings per share2 +0.9%3 to 32.2p
• Basic earnings per share +14.8%3 to 32.5p
• Full year dividend 17.0p per share level on the year
• Net debt down £150.7m to £2.46bn

Marc Bolland, Chief Executive, said: “M&S grew sales by 2.7% last year. We are focused on improving our performance in General Merchandise and were pleased to see early signs of improvement. Our Food business had a very strong year, consistently outperforming the market.

"Three years ago, we recognised the scale of investment required to transform our business, investing to strengthen our foundations and improve our customer offer. We are making solid progress on this journey and are now focused on delivery."

Marks and Spencer Group plc Chairman Robert Swannell, said, “The investment made in executing our strategy over the last three years puts M&S in a stronger position to compete in a retail world undergoing profound change. Our priorities now are to deliver on the investment we have made and to make M&S a more profitable, stronger and well-equipped business.

“In line with our dividend policy, the Board is recommending a final dividend of 10.8p per share, resulting in a full year dividend of 17.0p per share, level on last year.”
Guidance for financial year 2014/15

Gross margin is expected to grow by c.100bps in General Merchandise as a result of sourcing benefits, particularly in the second half of the year. Food gross margin is expected to grow by 10bps to 30bps due to further operational efficiency.

Operating costs are expected to increase by c.4% as a result of an increase in depreciation, inflation and the addition of new space. Group capital expenditure is expected to be lower at c.£500m to £550m.

The planned opening of new space will add c.1% to UK space, with c.2.5% in Food and no net space growth in GM. International space is expected to grow by c.10%. Underlying effective tax rate is expected to be 19.0%.