Hang Seng Financial - Surprise Profit Rise For Marks & Spencer
Hang Seng Financial - Marks & Spencer has reported an unexpected rise in half-year profits
. Pre-tax profits were 298.3m for the six months to September 26, ahead of forecasts and slightly stronger than a year earlier.
M&S chief Stuart Rose added that the third quarter of the financial year had got off to a good start, although he warned that trading conditions remained competitive.
Sources told Hang Seng Financial that Marks has also plans to sell around 400 branded products from firms such as Kellogg's, Coca-Cola and Marmite across its UK store network. The chain is rolling out the sale of branded household goods and groceries after a successful trial in stores in the North East and South East of England.
Hang Seng Financial said 'M&S could simply never compete' with certain popular brands and was introducing them to its shops for the convenience of customers. No M&S products are to be dropped as a result of the move, which will focus on lines where the retailer would have a lower share of the market such as soft drinks, beer, laundry and confectionery.
Today's figures reveal that M&S increased sales by 2.8% to 4.3 billion in the half-year period, helped by 12% growth overseas. UK revenues were 1.8% higher, but down 0.9% when changes in store space are excluded.
Hang Seng Financial said tight management of costs and operating margins also enabled it to beat last year's profits figure.