LONDON (dpa-AFX) - Marks & Spencer Group plc (MAKSY.PK, MAKSF.PK, MKS.L) reported that its profit before tax & adjusting items for the fiscal year ended 30 March 2019 was down 9.9% from prior year driven by headwinds on sales, partly offset by the operating costs transformation programme. The Group said trading in the first seven weeks of the current fiscal year is in line with Board expectations. The Group expects some improvement in trading in each of its major businesses in the fiscal year with progress likely to be second half weighted.
For 52 weeks ended 30 March 2019, pretax profit improved to 84.6 million pounds from 66.8 million pounds. Earnings per share was 2.1 pence compared to 1.6 pence. Profit before tax & adjusting items declined to 523.2 million pounds from 580.9 million pounds. Earnings per share before adjusting items was 25.4 pence compared to 27.8 pence.
Fiscal year Group revenue declined 3.0% to 10.38 billion pounds from 10.70 billion pounds, prior year. UK Food revenue was down 0.6%, with like-for-like revenue down 2.3% (1.5% adjusted for Easter). UK Clothing & Home revenue was down 3.6%, impacted by store closures, with like-for-like revenue down 1.6%.
Separately, M&S released the terms of its rights issue which will be based: 1 for 5 rights issue at 185 pence per new ordinary share. Net of estimated fees and expenses, the estimated proceeds are approximately 570.7 million pounds. Under the terms of the rights issue, the Group is proposing to offer 325,009,968 new ordinary shares to qualifying shareholders. The offer is to be made at 185 pence per new ordinary share.
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