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Divi modest this November! That’s good news!
Debt without leases down from 420m to 355.6 m -65m
The sales and profit have whacked city expectations!!
Great that the results clash with fall of inflation to 8.7% too
Various forecasts in media for Wednesday
A consensus of experts predicts that the firm will post a £436 million pre-tax profit for the year, up from £391.7 million.
Times:
There should be no surprises when it comes to the numbers because M&S warned last year that it would take a hit from no longer receiving business rates relief, from its exit from Russia because of the war in Ukraine and because of inflation. It expects profits of about £415 million, with the consensus view of analysts at £425 million.
Same day as Mks/Wednesday we have UK April inflation numbers amongst whole array of other data. 9.5% inflation and good Mks numbers would be good, along with our friend JJ divi !
BR have opened a small short 0.61 as per usual-covering their long at 2.9%
https://shorteurope.com/details_company.php?company=MARKS%20AND%20SPENCER%20GROUP%20PLC&land=united_kingdom
Always good to use their positions to knock down share prices prior to buying!!
No doubt there will be many tree shakes on Mks ahead of 24 May FY results. Shares in Mks are scarce due to investors holding tight, volume is extremely small last few weeks.
I agree JG68, makes no sense !
Marks & Spencer to ‘neutral’ from ‘buy’ but lifted homewares retailer Dunelm to ‘neutral’ from ‘sell’.
"Our analysis suggests limited liquidity risk with all companies having sufficient funds to last until trading is forecast to normalise in September," it said. "However, we believe that after a period of released pent-up demand, consumption will be held back by lower confidence and higher unemployment."
Citi said a V-shaped recovery in spending feels "too bullish". It reckons there will be a quicker recovery for younger consumers, but less so for older consumers and online penetration will take a "noticeable" step up.
"These trends do not favour M&S or Primark," it said.
Sponge,
What happened to your Red day ???
I expect you have just disappeared now??
KL and Singapore I believe are owned and operated by a local partner Al-Futtaim Group.
Al-Futtaim Group usually do Pop ups to test brand/sales and if successful the potential size of each store prior to any permanent lease agreement.
The pop up stores are common place with many of the Mks local partners. Sounds like QM-P may well be one of those.
Carrington, Analysts have put a 4p divi for year gone and 6p this year as consensus. It is of course a forecast but I agree they would be extremely surprised if no divi with 60% institutional investment Mks has attracted.
Yes saw the 27% share in NBC but didn’t say how much, but certainly another good sign for 3rd party and building an improved green reputation.
Waitrose are trying to copy the Mks image building for food quality on tv but looks like seat of pants and inspired probably by the Mks marketing guy who went to JL.
Agree Chilting with Mks demographic.
Front basket products are highly competitive in Mks as seen in some red top media as they compared retails with even Lidl! Front basket has circa 25 products at minimal gross profit-GP
However, the back basket-rest of the range has GP in excess of std supermarket and more than makes up for front basket.
Also the 5,000 ranged Mks standalone stores and service station/hubs even higher GP.
Granted the Ocado price match in comparison with Tesco will squeeze GP.
Overall I don’t see a GP squeeze, it’s an operating cost increase that’s threatening.
I don’t think GIST final payment has been seen yet and some banking costs.
The 3rd party clothing is performing very well and international, together with online. In particular C&C.
GIST property assets far exceed the capital costs for Mks.
Mks may avoid a lot of PE interest by its own shopping trip for bargains as the high st further consolidates.
Cash flow will be strong.
To hear of sellers is very good news.
Small volumes on market for Mks as it’s in a hold position, 300 thousand shares traded in 4 hours today!
Sells mean a buys for others-thank you, and potentially get Mks over the 170p important milestone.
@10.3X PE and the flat sector at 13X, Tesco at 27X, Mks have a great opportunity to move to at least 12X PE, with stable profits, sales growth, and move back to ftse100.
One would suppose the Hatfield cfc closure would make sense as the oldest Ocado site and old kit.
Slow productivity I would imagine and high rent costs?
Although most of the staff at Hatfield would go to Luton-13 Mike’s away, there would still be one off redundancy wage costs.
Ocado Retail’s first CFC opened in Hatfield in 2002, followed by Dordon in 2013, and Erith in 2017. The first mini CFC opened in Bristol in March 2021. Three further CFCs have since gone live; the re-opening of Andover, Purfleet and Bicester.
A CFC in Luton is due to open in 2023 alongside two new sites in the north-west and south-east.
https://ocadogroup.com/about-us/osp-partners/ocado-retail/
This is great news!
S&P: Britain has had its credit rating outlook revised to stable from negative and its AA rating affirmed by Standard & Poor’s, the credit ratings agency. S&P said the government’s decision to abandon most of the £45 billion of unfunded measures proposed in Kwasi Kwarteng’s mini-budget had bolstered the fiscal outlook. Adding to this was a fall in the cost of the government’s energy support scheme after prices fell over the winter.
JJ indeed, Asia and Portugal. That’s the point.
Jaeger in 2017 started to move clothing production back to UK. I was hoping to see at least a glimmer of that strategy.
Totally Chilting totally! Natural fibres and not artificial! But unfortunately UK yield is low on crops like bamboo so reliant on warmer climates(for now) to reach likely volumes. Water used in manufacturing is a real issue and desalination need’s investment not just for this purpose but also drinking!!
UK has at least one desalination plant (on Thames) but more will be required and soon.
Like to see mks communicating plan A environmental with numbers, clothing is 10% of the total carbon output.
I don’t like the supply chain in Asia unless shipping becomes acceptable with fuel cells from hydrogen, if boo can do it in Leicester why can’t Mks? I had hoped that Jaeger would steer this.
The fact is, this is about establishing what we do most of best and finding fewer ways of doing more of it less!
Putin’s war as painful as it is, has only sped up the focus on alternative fuels-which is strategically a win.
Wholesale gas and oil is almost pre war prices, putin economy held up by Asia thro discounted fuel and other materials.
Wholesale food price have dropped substantially and always take time to filter.
The race to grow UK economy and its balance with interest rates and stagnation will mean BoE inflation target probably not met and lingering at 4-5%. UK may even need a recession.
It’s a dead end for Russia as in 10 years India/China will have alternative fuels in order to beat US. India by then will be the largest populated country. Hydrogen fuel cells etc race will be won in Asia.
2050 fossil depletion is based on today’s availability and as you say JJ that depends on new discoveries. However by 2035-2040 parts of the populated areas will be under water, and the only question in the human psyche will be survival and a race to reduce carbon already heating the polar regions.
Trees are going to be so critical in helping save land.
As land is taken by water through polar depletion or non existent, famine, disease and displacement of human populations will be order of the day.
We are in serious trouble but we have most of the tools to fight if we can refocus from destroying to rebuilding Mother Nature.
Priorities today are like chalk to cheese in just 5 years on current trajectory.
Soon the BoE and government will be using ‘ stagnation fear’
Inflation will fall once lower wholesale prices hit retail, but probably no lower than 4% by year end
Interest rate reductions and tax reductions will soon be a weapon of choice for government.
It’s clear that no political party in UK or indeed around the globe quite understands the impact of warming and the potential volume of land that could be lost under water. Plus thankfully fossil fuel will come close in 2050 to being exhausted.
Totally insufficient work shifting large industrial and transportation toward neutral carbon and removing carbon. The narrative from people in power is still trivial lunacy compared to the size of our problem. Warming on the scale we have is not cyclical, and it’s man made in the last 100 years.
Sorry typo ‘coats and jumpers’ !!