MARKS AND SPENCER : FULL YEAR RESULTS FOR 52 WEEKS ENDED 1 APRIL 2017

Adjusted results are consistent with how business performance is measured internally. Refer to adjusted items table below for further details. See glossary for definitions

The financial year 2016/17 was a 52 week year whereas 2015/16 was a 53 week year. Unless otherwise stated, in order to provide a year on year comparison, variances relating to revenue, profit and earnings per share are on a 52 week comparative to 26 March 2016.

• Adjusted profit before tax down 10.3% due to the expected decrease in Clothing & Home sales and increased costs of new space.
• Significant adjusted items of £437.4m resulted in profit before tax down 63.5% as we establish a base from which to grow.
• Clothing & Home gross margin up 105 basis points with full price sales growth of 2.7%. As expected, revenue down 2.8% due to planned reduction in promotions and clearance sales.
• Food revenue growth of 4.2% driven by new stores. Gross margin down 25bps due to input cost inflation and higher than anticipated waste.
• UK costs up 3.8% due to costs of new space, IT investment and inflation, offset by efficiencies.
• International profit before adjusted items up 15.4% to £64.4m, as a result of the decision to exit owned stores in 10 loss-making markets.
• Strong cash generation reduced net debt by £204m. Full year dividend unchanged at 18.7p.

Steve Rowe, Marks & Spencer CEO said:

'Last year we outlined a comprehensive plan to build strong foundations for the future. We said we would recover and grow clothing and home, continue with our plans for Food growth, remove costs and simplify the business. We achieved a huge amount in the year and whilst there is still much to do, I am pleased with our progress and we remain on track.

'As we have made improvements to our Clothing & Home product and proposition, our customers have noticed; we are starting to stabilise market share and importantly have seen full price market share growth, as we removed excessive discounting. In addition, our new Food stores continue to exceed our expectations.

'As we anticipated, the planned restructuring of M&S has come with a cost and has impacted profits, but the business is still strongly cash generative and we reduced our net debt.

'Looking ahead, we will continue our programme of self-help in a tough trading environment. We remain committed to delivering for our customers and shareholders as we build sustainable foundations for the future.'

Robert Swannell, Marks & Spencer Chairman said:

'This has been a year of accelerated change at M&S, as Steve set out his plan for a simpler business, focused on customers. We believe these actions will make M&S a stronger, sustainable business. We are maintaining a total dividend per share at 18.7p, the same level as last year, taking into account the strong cash generation of the business.'

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