M&S profits tumble

Marks & Spencer has reported a 40 per cent dive an annual profits, prompting the retailer to cut its dividend payout by a third.

Underlying profits fell from £1 billion to £604.4 million in the 12 months to March 28. Stores open for more than a year saw sales fall by six per cent. Food sales were down five per cent.

The dividend payout to shareholders will decrease by 33.1 per cent, to 15p a share for the year to 28 March, down from 22p in the previous year. The cut, which M&S described as “tough but necessary”, was larger than most analysts had predicted.

Executive chairman Sir Stuart Rose said in a statement: “We remain cautious about the outlook for the remainder of the year.”