Half-year Report

About this update from Marks And Spencer Group Plc

[{"type":"text","content":"\n \n Marks and Spencer Group Plc \n Half Year Results for the 26 Weeks Ended 28 September 2024 \n \"RESHAPING FOR GROWTH\" \n Strong first half results, building on performance of last year \n ·      Profit before tax and adjusting items up 17.2% at £407.8m (2023/24: £348.1m) \n ·      Statutory profit before tax of £391.9m (2023/24: £325.6m) \n ·      Food sales up 8.1%; adjusted operating profit £213.1m (2023/24: £158.4m) and margin of 5.1% \n ·      Clothing & Home sales up 4.7%; adjusted operating profit £242.2m (2023/24: £240.9m) and margin of 12.0% \n ·      Ocado Retail JV share of adjusted loss £16.0m (2023/24: £23.4m adjusted loss) \n ·      International constant currency sales down 10.3%; adjusted operating profit £15.2m (2023/24: £32.4m) \n ·      Adjusted return on capital employed increased to 15.0% (2023/24:13.2%) \n   \n Consistent execution \n ·      Food volume and value share growth for four years running. H1 growth driven by produce, meat and dairy and a strong programme of innovation. Strongest value perception in over a decade. \n ·      Consecutive monthly market share growth in Clothing for four years. H1 growth driven by Womenswear. Full price sales mix broadly level with last year. Style perception continuing to improve. \n ·      New UK stores and renewals trading ahead of forecast. Increasing site acquisition to accelerate store rotation. \n ·      Digital investment to improve product planning and the online experience in Clothing & Home and forecasting, ordering and allocation in Food. \n ·      Structural cost reductions on track, with c.£60m saved in the period, largely offsetting cost inflation. \n ·      Building on benefits of Gist integration, focus now turns to investing in the network and increasing capacity. \n ·      International reset underway under new leadership team. \n ·      Strong financial position, with investment grade credit metrics reinforced. £190.3m bonds repurchase complete. \n   \n \n \n \n \n Group Results (26 weeks ended) \n \n \n 28 September 24 \n \n \n 30 September 23 \n \n \n Change (%) \n \n \n \n \n Statutory revenue \n \n \n 6,481.0 \n \n \n 6,134.0 \n \n \n 5.7 \n \n \n \n \n Sales 2 \n \n \n 6,524.3 \n \n \n 6,164.4 \n \n \n 5.8 \n \n \n \n \n Operating profit before adjusting items \n \n \n 462.7 \n \n \n 410.4 \n \n \n 12.7 \n \n \n \n \n Profit before tax and adjusting items 1 \n \n \n 407.8 \n \n \n 348.1 \n \n \n 17.2 \n \n \n \n \n Adjusting items 1 \n \n \n (15.9) \n \n \n (22.5) \n \n \n 29.3 \n \n \n \n \n Profit before tax \n \n \n 391.9 \n \n \n 325.6 \n \n \n 20.4 \n \n \n \n \n Profit after tax \n \n \n 278.6 \n \n \n 206.9 \n \n \n 34.7 \n \n \n \n \n Basic earnings per share \n \n \n 14.0p \n \n \n 10.6p \n \n \n 32.1 \n \n \n \n \n Adjusted basic earnings per share 1 \n \n \n 14.7p \n \n \n 12.2p \n \n \n 20.5 \n \n \n \n \n Dividend per share \n \n \n 1.0p \n \n \n 1.0p \n \n \n - \n \n \n \n \n Adjusted return on capital employed 1 \n \n \n 15.0 \n \n \n 13.2 \n \n \n 13.6 \n \n \n \n \n Free cash flow from operations          \n \n \n 16.3 \n \n \n 27.7 \n \n \n n/a \n \n \n \n \n Net (debt) \n \n \n (2,164.1) \n \n \n (2,564.0) \n \n \n n/a \n \n \n \n \n Net funds/(debt) excl. lease liabilities \n \n \n 22.4 \n \n \n (319.9) \n \n \n n/a \n \n \n \n \n   \n 1. Adjusted measures for 30 th September 2023 have been restated due to net pension finance income being reclassified as an adjusting item (H1 2023/24 £12.1m). \n 2. References to 'sales' throughout this announcement are statutory revenue plus the gross value of consignment sales ex. VAT. \n Non-GAAP measures and alternative profit measures (APMs) are discussed within this release. A glossary and reconciliation to statutory measures is provided at the end of this document. Adjusted results are consistent with how business performance is measured internally and presented to aid comparability. Refer to Notes 1 and 3 of the financial information for further details. Results of Republic of Ireland (ROI) have been reclassified from the International segment to be reported within Food and Clothing & Home. \n   \n Stuart Machin, Chief Executive said: \n \"Executing our strategy to 'Reshape M&S for Growth' has again delivered an increase in customers, sales value and volume, market share, profit and returns. Both Food and Clothing have now delivered market share growth for four consecutive years. \n Central to our strategy is our vision to be the most trusted retailer, with quality products at the heart of everything we do. This is not something we take lightly, and our relentlessness in delivering customers the best quality, innovation, service and value only available at M&S underpins our trading momentum. \n In Food, we have been resolute in our commitment to trusted value. Over 1,000 products are being upgraded and 1,400 new lines are being launched across the year, putting us even further ahead of the pack on quality credentials, and value perception is the highest it's been in a decade. Progress on being a 'shopping list retailer' has driven growth in larger baskets. \n In Clothing, deeper buying into campaign lines and on-trend collaborations have driven yet another move on in style perception, with Womenswear and Menswear attracting new customers. Our authoritative lead on quality and value has supported strong full price sales in a promotional market. \n The easy thing to do today would simply be to say that these are good results, but that wouldn't be the right thing to do. In the spirit of being positively dissatisfied, we have so much to do over this year and beyond. Despite our strong trading momentum, there is much more opportunity for future growth and that energises us. \n With Clothing in growth and strong online performance, we are clear that now is the time to seize the opportunity in other categories including Home and Beauty. Across Clothing & Home online, we need to accelerate our transformation and reimagine our proposition. Under new leadership, we've now got a grip on our digital and technology infrastructure, as progress to date has been slower than we would have liked, so we must accelerate delivery. We are resetting priorities in International to drive future growth, as well as acting now to improve short-term performance. We have fresh impetus in our store rotation plan with the acquisition of ten major new sites in high quality, high growth locations, but we want to go faster so every store is a store we're proud of. \n The business remains in robust financial health. We have improved our return on capital employed to 15% and further strengthened our balance sheet, giving us the capacity and flexibility to invest for growth and deliver structural cost reduction, demonstrating our ability to deliver value for shareholders. \n The recent Budget's long-term impact on M&S, our suppliers, and our customers is for now uncertain. Meanwhile, we are confident and we remain on track and focused on what is in our control. We have the best Christmas food range I've seen in my time at M&S and the most stylish seasonal clothing offer yet, and we know customers are looking forward to celebrating Christmas with M&S. \n I want to thank my colleagues for everything they have done and are about to do, and of course, all of our customers for shopping with us.\" \n   \n RESHAPING FOR GROWTH \n As M&S continues to invest in the early stages of 'Reshaping for Growth', the business has delivered improved sales and volume, profit and market share in both Food and Clothing & Home. \n Our vision is to be the UK's most trusted retailer, with quality products at the heart of everything we do. We are making progress, with a strong programme of product innovation and improvements to perceptions of quality, value and style. There remains a long way to go in our reshaping programme and clear opportunities exist for profitable growth to achieve the objective of a one percent increase in Food and Clothing & Home market share by FY28. \n Our store rotation programme is picking up pace. New and renewed stores are trading well, with relocations of Full Line stores more productive and renewal stores able to offer a full M&S Food range. We are accelerating store acquisition, securing 10 new locations in recent weeks. However, there is more to do to develop the store pipeline to achieve the objective of a focused productive group of 180 Full Line stores and 420 Food stores by FY28. Separately we are also progressing with the disposal of two warehouse properties. \n Our online business made progress in the period, with double digit growth in Clothing & Home, and the exit of the bulky furniture category. It remains a critical objective to grow online participation from the current 1/3 mix of Clothing & Home sales and we are addressing issues in fulfilment and website performance which provides opportunities for growth. \n The programme of cost reduction is on track, and we remain confident of achieving £500m of savings by FY28, across stores, the support centre and supply chain. In the period, we delivered our target operating margins of over 4% in Food and over 10% in Clothing & Home, but cost pressures remain strong with labour cost inflation running at 10% in the current year. Early-stage modernisation of the supply chains includes the roll out of a new forecasting and ordering system in Food, warehouse capacity investments and the multi-year development of a new planning platform in Clothing & Home. While structural cost savings have largely offset the impact of operating cost inflation in the current year, further investment in efficiency initiatives and automation will be needed. \n Our plans depend on three critical enablers: Building a high-performance culture, transforming the digital experience and technology infrastructure, plus disciplined capital investment and allocation. \n Creating a high-performance culture is critical to delivering the service customers expect of M&S. At the heart of this is a culture of positive dissatisfaction and 'always aiming higher' with a support centre that is closer to customers and front-line colleagues. Support centre colleagues now spend at least seven days each year working in store as part of performance objectives. M&S' People Director ran all aspects of a store for three months during the period, taking accountability to improve and resolve the issues found. We aim to promote at least 50% of leadership internally with the expectation that promoted colleagues spend at least one month working in customer-facing roles. \n M&S plans to upgrade legacy systems and invest to support omni-channel sales. With the arrival our new Chief Technology Officer we have completed a comprehensive review of systems and are now embarking on a multi-year programme of investment. The business is currently operating complex, costly, legacy applications which need upgrading. Investment will also be made in the data engine and the Sparks loyalty programme to deliver a more personalised customer experience. \n Our focus on operational cash flow generation combined with a disciplined approach to capital investment and allocation is key to the M&S transformation. This is delivering an improvement in return on capital employed and a strong balance sheet. We have declared an interim dividend of 1p per share being one third of last year's total dividend. The final dividend will be determined at year end, based on performance for the year. \n   \n OUTLOOK \n During the first half of the year, cost inflation has continued to be elevated, running well ahead of price inflation and the consumer environment has been uncertain. Despite this, the business has traded well growing volume and value market share. \n As we enter the second half, we expect this backdrop to persist. Nevertheless, in the first five weeks of the second half overall trading remains on track and we are confident of making further progress in the remainder of the year. \n   \n FOOD SUSTAINING VOLUME GROWTH AND COMPETITIVENESS \n Food sales increased 8.1%, with like-for-like growth of 7.5% driven by UK volume growth of 6.5%. Volume growth has now outperformed the market for four years running. Market share was up 30bps to 3.7% for the 12 weeks to 29 September 2024. Adjusted operating profit margin increased to 5.1% from 4.1% last year, with structural cost reduction initiatives largely offsetting cost inflation. This enabled the benefits of volume growth to flow to improved profitability. \n Investing in trusted value, innovation and improved choice \n ·      Prices were 'dropped and locked' on key shopping list items such as fish, dairy and poultry, and seasonal fresh market specials were relaunched, driving sales of core lines. \n ·      Quality upgrades included sandwiches, collection pizzas and desserts as part of a programme of over 1,000 lines this year, with partners investing in improved capabilities. Category transformations in confectionery, 'gastropub x Tom Kerridge' and Indian food delivered accelerated growth. \n ·      The personal care range was upgraded and relaunched as part of the strategy to enable customers to do more of their shopping with M&S. \n ·      Value perception reached its strongest position in over 10 years. \n   \n New Food stores and renewals trading well \n ·      Two Foodhalls in new Full Line stores and three new standalone stores opened in the period. \n ·      New Food stores averaged c.14,000 square feet, compared with the current average of c.8,000, enabling customers to shop the full M&S range. Food sales have outperformed target by c.8%. \n ·      Four renewals included Chancery Lane and Blackheath with a further eight planned for the second half. Renewal stores opened last year grew sales by a further 9%. \n ·      New format trials included the introduction of the full M&S range to a smaller 7,000 square foot store in Sidcup, with encouraging results. \n ·      We anticipate the eight Food stores opened in FY24 will generate strong annualised returns: \n   \n \n \n \n \n Annualised \n Sales (£m) \n \n \n Annualised \n Cash Contribution (£m) \n \n \n Net \n Capex (£m) \n \n \n Payback (years) \n \n \n \n \n 117 \n \n \n 13 \n \n \n 28 \n \n \n 3.4 \n \n \n \n \n   \n Fixing the infrastructure of M&S Food to improve availability and reduce cost to serve \n Food supply chain programmes are driving a series of changes to create a more modern, cost-effective flow of product from field or factory through to checkout. These include: \n ·      Implementation of the 'One Best Way' retail operations programme which is improving productivity and contributing to structural cost reductions. Following good results in the Leeds region, this is now being implemented more widely. \n ·      Roll out of a new forecasting and ordering system which is nearing completion, helping us to better match supply to market conditions and to improve availability which is critical as we continue to target volume growth. \n ·      Long term agreements with strategic partners enabling investment in product innovation, factory capacity and supply chain resilience. \n ·      The first steps on developing a modern, lower cost to serve logistics network, with additional capacity for growth. \n   \n CLOTHING & HOME DELIVERING CONSISTENT GROWTH, AND FURTHER IMPROVEMENT IN STYLE PERCEPTION \n Clothing & Home sales increased 4.7%, with LFL sales up 5.3%. Sales growth improved in Q2 (8.1%) compared with Q1 (1.3%), with more seasonable weather. Market share was up 90bps to 10.3% for the 12 weeks to 15 September 2024, with M&S outperforming the market for c.4 years. Despite a more promotional market, full price sales mix was broadly level at 80.5%. Adjusted operating profit margin was above target at 12.0% (£242.2m) compared with 12.4% (£240.9m) last year. The slight reduction in margin reflected investments in technology and digital development, partly offset by cost savings. \n Strong performance of core categories \n ·      Women's, Men's and Lingerie saw good growth in categories such as knitwear, casual tops and men's Autograph lines. \n ·      Deeper buying into campaign lines drove a further increase in style perceptions. Collaborations with Sienna Miller and Bella Freud sold rapidly. \n ·      In a softer Kidswear market we slightly grew share, with growth in boys' daywear, also supported by the launch of The Parent Hood, a baby club offering member savings and community events. \n ·      Perceptions of quality and value remain market leading with style improving in the period. \n   \n Accelerating online growth \n ·      Online participation increased to 33% (31% LY). Online sales were up 11.3%, with growth increasing to 16.5% in Q2, as we introduced an upgraded fashion-led online experience, as marketing was weighted towards brand and social channels. \n ·      Partner brand sales continued to perform well, up c.40% with growth in dresses and footwear. \n ·      The exit of bulky furniture completed in August, freeing resources and space to focus on growth in core Home. \n ·      There remains further opportunity to improve customer experience and tackle fulfilment challenges as we invest in our online growth strategy. \n   \n New Full Line stores trading strongly ahead of plan, generating healthy paybacks \n ·      Overall store sales increased 1.7%. Two new Full Line stores at Dundee and Washington Galleries opened in the period with their Clothing & Home sales outperforming appraised levels by 13%. \n ·      Flagship stores in Bristol and Bath are expected to be opened in the next financial year. \n ·      A clothing only store format trial will open in Battersea in December 2024. \n ·      We anticipate the six Full Line stores opened in FY24 will generate strong annualised returns: \n   \n \n \n \n \n Annualised \n Sales (£m) \n \n \n Annualised \n Cash Contribution (£m) \n \n \n Net \n Capex (£m) \n \n \n Payback (years) \n \n \n \n \n 251 \n \n \n 47 \n \n \n 87 \n \n \n 2.1 \n \n \n \n \n   \n Embedding change across the supply chain \n Despite the improved performance of Clothing & Home, availability and sales remain constrained by a high cost, slow moving supply chain. Changes underway aim to embed growth through effective commercial processes, an efficient logistics network, strategic sourcing partnerships and a new planning platform. \n ·      Investment in boxed storage and hanging capacity automation in the logistics network will increase capacity to serve online orders and reduce costs. Stoke and Ollerton warehouses commenced online shipments in the period, giving us capacity to service omni channel orders from four distribution centres. \n ·      Suppliers in key categories such as denim have been reduced and we are creating long term partnerships, lowering costs and improving capabilities. \n ·      The future adoption of a new planning platform will enable ranging by channel, and ordering and intake in real time. By 2027 this will be linked to capacity, production plans and material requirements with a rationalised group of more strategic suppliers. The first module of the platform will be introduced in the second half of this year. \n   \n OCADO RETAIL STRONG SALES GROWTH DRIVEN BY M&S PRODUCT - MORE TO DO TO IMPROVE PROFITABILITY \n Results for Ocado Retail are reported by Ocado Group and are not consolidated in this release. M&S accounts for the joint venture as an associate interest. \n Our vision for Ocado Retail remains to combine the magic of M&S Food with Ocado's unique and proprietary technology to offer unbeatable choice, unrivalled service and reassuringly good value, underpinned by efficient and effective operations. \n ·      Revenue increased 13.8% to £1.3bn and adjusted EBITDA was £18.1m (2023/24: £5.3m). The M&S group's share of adjusted loss reduced to £16.0m (2023/24 £23.4m adjusted loss) driven by the improved sales performance. \n ·      The M&S volume of product sold on Ocado increased 19.1% and represented 29.8% of Ocado Retail volumes (2023/24: 28.4%), with 95% of the addressable range now available to customers. M&S' participation reached c.48% across fresh categories such as produce and poultry reflecting our growing strength in the 'spine of the basket'. \n ·      As a result of higher service delivery costs and continuing lease and Ocado Smart Platform (OSP) fees for the old Hatfield site, overall profitability has yet to benefit from increasing levels of capacity utilisation. \n   \n While the customer proposition is becoming more competitive, there remains more to do to improve overall levels of profitability before investing in new site capacity. \n   \n INTERNATIONAL RESET UNDERWAY \n The ambition for International is to build a global omni-channel business, which brings the magic of M&S to customers around the world. The recent improvement in performance of the UK business, and the strength of the M&S brand and its partners provides a significant opportunity for growth, although results in the period were disappointing. \n Sales declined 10.3% at constant currency, continuing the weak performance reported in H2 last year. Owned sales were down 13.2% driven by India. Franchise sales were down 7.8% with a softer C&H order book, partly offset by growth in Food franchise. \n Operating profit before adjusting items declined to £15.2m (margin 4.7%) from £32.4m (2023/24: 8.9%). \n Actions have been taken to lower stock levels, improve the range, reduce operating costs and strengthen leadership and we expect the business to stabilise in the next year. \n The disappointing partnership sales reflect weak underlying demand and the need to improve value and style perceptions in local markets and we are testing new partnership models to enable this. \n In addition, several wholesale and marketplace sales opportunities have been identified which should contribute to the second half result. \n With reset actions underway we are confident International remains a growth opportunity in the medium term. \n   \n DISCIPLINED CAPITAL ALLOCATION AND INVESTMENT \n A focus on operational cash flow generation combined with a disciplined approach to capital allocation and investment is delivering improved return on capital employed and further reduction in debt. \n ·      H1 free cash flow from operations was £16.3m, as operating profit before adjusting items was partly offset by working capital outflows and the planned increase in capex. Group net debt reduced, driven by lease repayments. \n ·      As a result of a stronger balance sheet and a further repurchase of £190.3m of medium-term bonds, credit metrics improved further. \n ·      Investments in growth and efficiency projects continue to generate strong returns and we expect group net capex of c.£500m this year, with scope for increase in FY25 as projects that meet our hurdle rates are identified. Return on capital employed increased to 15.0% from 13.2%. \n ·      The Board has declared an interim dividend of 1p per share being one third of last year's total dividend. The final dividend will be determined at year end, based on performance for the year. As noted above, our capital allocation is focused on investing in the transformation, delivering returns above our hurdle rates. Cashflow which cannot be invested at our targeted returns will be returned to shareholders over time. \n   \n For further information, please contact: \n Investor Relations \n Fraser Ramzan: +44 (0) 7554 227 758 \n Helen Lee: +44 (0) 7880 294 990 \n Media Enquiries: \n Corporate Press Office: +44 (0) 20 8718 1919 \n   \n Investor & Analyst presentation and Q&A:  \n   \n A pre-recorded investor and analyst presentation will be available on the Marks and Spencer Group Plc website  here  from 7:30am on 6 November 2024.  \n   \n Stuart Machin and Jeremy Townsend will host a Q&A session at 9.30am on 6 November 2024: \n   \n For the quickest joining experience, please register prior to atten ding the call here . After registering, you will be given unique dial in details to join the call. \n   \n Alternatively, you can use the below details to join the call but please join 5-10 minutes before the start time in order to register your details with the operator. \n Dial in: +44 (0) 33 0551 0200 \n Passcode: Quote  M&S Analyst Call  when prompted by the operator \n Replay : A recording will be available for 48 hours after the call  here \n   \n Important Notice : The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the UK version of the Market Abuse Regulation (EU) No. 596/2014 as it forms part of UK law by virtue of the European Union (Withdrawal) Act 2018. Upon the publication of this announcement, this inside information is now considered to be in the public domain. \n Statements made in this announcement that look forward in time or that express management's beliefs, expectations or estimates regarding future occurrences and prospects are \"forward-looking statements\" within the meaning of the United States federal securities laws. These forward-looking statements reflect Marks & Spencer's current expectations concerning future events and actual results may differ materially from current expectations or historical results. Any forward-looking statements are subject to various risks and uncertainties, including, but not limited to, failure by Marks & Spencer to predict accurately customer preferences; decline in the demand for products offered by Marks & Spencer; competitive influences; changes in levels of store traffic or consumer spending habits; effectiveness of Marks & Spencer's brand awareness and marketing programmes; general economic conditions including, but not limited to, a downturn in the retail or financial services industries; acts of war or terrorism worldwide; work stoppages, slowdowns or strikes; and changes in financial and equity markets. For further information regarding risks to Marks & Spencer's business, please consult the risk management section of the 2024 Annual Report (pages 62-70). \n   \n The forward-looking statements contained in this document speak only as of the date of this announcement, and Marks & Spencer does not undertake to update any forward-looking statement to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. \n   \n HALF YEAR FINANCIAL REVIEW \n Financial Summary \n   \n \n \n \n \n 26 weeks ended \n \n \n 28 Sep 24 \n £m \n \n \n 30 Sep 23 \n Restated £m 1 \n \n \n Change vs 23/24 % \n \n \n \n \n Group statutory revenue \n \n \n 6,481.0 \n \n \n 6,134.0 \n \n \n 5.7 \n \n \n \n \n Group sales \n \n \n 6,524.3 \n \n \n 6,164.4 \n \n \n 5.8 \n \n \n \n \n Food \n \n \n 4,176.5 \n \n \n 3,865.3 \n \n \n 8.1 \n \n \n \n \n Clothing & Home \n \n \n 2,026.8 \n \n \n 1,935.9 \n \n \n 4.7 \n \n \n \n \n International \n \n \n 321.0 \n \n \n 363.2 \n \n \n (11.6) \n \n \n \n \n \n \n \n   \n \n \n \n \n \n \n \n \n \n \n Group operating profit before adjusting items \n \n \n 462.7 \n \n \n 410.4 \n \n \n 12.7 \n \n \n \n \n Food \n \n \n 213.1 \n \n \n 158.4 \n \n \n 34.5 \n \n \n \n \n Clothing & Home \n \n \n 242.2 \n \n \n 240.9 \n \n \n 0.5 \n \n \n \n \n International \n \n \n 15.2 \n \n \n 32.4 \n \n \n (53.1) \n \n \n \n \n Share of result in Ocado Retail Limited \n \n \n (16.0) \n \n \n (23.4) \n \n \n 31.6 \n \n \n \n \n M&S Financial Services / Other \n \n \n 8.2 \n \n \n 2.1 \n \n \n n/a \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Net interest payable on lease liabilities \n \n \n (54.4) \n \n \n (54.7) \n \n \n n/a \n \n \n \n \n Net financial interest \n \n \n (0.5) \n \n \n (7.6) \n \n \n n/a \n \n \n \n \n Profit before tax and adjusting items \n \n \n 407.8 \n \n \n 348.1 \n \n \n 17.2 \n \n \n \n \n Adjusting items \n \n \n (15.9) \n \n \n (22.5) \n \n \n 29.3 \n \n \n \n \n Profit before tax \n \n \n 391.9 \n \n \n 325.6 \n \n \n 20.4 \n \n \n \n \n Profit after tax \n \n \n 278.6 \n \n \n 206.9 \n \n \n 34.7 \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Adjusted basic earnings per share \n \n \n 14.7p \n \n \n 12.2p \n \n \n 20.5 \n \n \n \n \n Basic earnings per share \n \n \n 14.0p \n \n \n 10.6p \n \n \n 32.1 \n \n \n \n \n Dividend per share \n \n \n 1.0p \n \n \n 1.0p \n \n \n - \n \n \n \n \n Net debt \n \n \n (2,164.1) \n \n \n (2,564.0) \n \n \n n/a \n \n \n \n \n Net funds/(debt) excluding lease liabilities \n \n \n 22.4 \n \n \n (319.9) \n \n \n n/a \n \n \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n \n \n Group capex and disposals \n \n \n (215.4) \n \n \n (190.0) \n \n \n n/a \n \n \n \n \n Free cash flow from operations \n \n \n 16.3 \n \n \n 27.7 \n \n \n n/a \n \n \n \n \n Adjusted return on capital employed (12 month rolling) \n \n \n 15.0% \n \n \n 13.2% \n \n \n 13.6 \n \n \n \n \n   \n Notes: \n   \n 1 Due to a change in the Group's classification of net pension finance income as an adjusting item (see note 3 to the financial information), the comparative amounts have been restated. The impact on the 26 weeks ended 28 September 2023 income statement is a decrease to the adjusting items charge of £12.1m and a decrease to adjusted earnings per share of 0.5p. There is no impact on profit before tax, earnings per share or net assets. \n   \n There are a number of non-GAAP measures and alternative profit measures (\"APMs\") discussed within this announcement, and a glossary and reconciliation to statutory measures is provided at the end of this report. Adjusted results are consistent with how business performance is measured internally and presented to aid comparability of performance. Refer to the adjusting items table below for further details. \n   \n Group results \n   \n Group sales were £6,524.3m. This was an increase of 5.8% versus 2023/24, driven by Food sales up 8.1% and Clothing & Home sales up 4.7%. Statutory revenue in the period was £6,481.0m, an increase of 5.7% versus 2023/24. \n The Group generated profit before tax and adjusting items of £407.8m compared with £348.1m in the prior year. The results of Republic of Ireland (ROI) have been reclassified from the International segment to be reported within Food and Clothing & Home. \n Adjusting items were a net charge of £15.9m, compared with £22.5m in the prior year. The net charge in the period primarily consists of costs relating to the UK store rotation plans and M&S Financial Services transformation, partially offset by a credit relating to a legal settlement. Prior year adjusted results have been restated to reflect net finance income on the IAS19 pension surplus which has been reclassified as an adjusting item. \n As a result, the Group generated a statutory profit before tax of £391.9m, compared with £325.6m in the prior year. \n Adjusted basic EPS was 14.7p, up 20.5% on 2023/24 reflecting higher adjusted profit in the period. Basic EPS was 14.0p, up 32.1% on 2023/24, reflecting the increased profit in the period. \n An interim dividend of 1.0p per share has been declared, payable on 10 January 2025. \n For full details the Group's related policy and adjusting items, read more in notes 1 and 3 to the financial information. \n Food - UK and ROI \n   \n Food sales increased 8.1%, with like for like sales up 7.5%, driven by volume in core categories and a strong programme of innovation. Sales in Q1 were adversely impacted by the absence of Easter in the current financial year. \n   \n \n \n \n \n Change vs 23/24 % \n \n \n   \n \n \n Q1 \n \n \n Q2 \n \n \n HY \n \n \n \n \n Food \n \n \n \n \n \n 5.6 \n \n \n 10.6 \n \n \n 8.1 \n \n \n \n \n Food like-for-like sales \n \n \n \n \n \n 4.7 \n \n \n 10.3 \n \n \n 7.5 \n \n \n \n \n   \n M&S Food has an online grocery presence with Ocado Retail. These sales are reported by Ocado Group and are not included within these numbers. \n   \n   \n \n \n \n \n 26 weeks ended \n   \n \n \n 28 Sep 24 \n \n \n 30 Sep 23 \n \n \n Change vs 2023/24 % \n \n \n \n \n UK Transactions, m (average/week) \n \n \n            10.0 \n \n \n 9.4 \n \n \n 6.4 \n \n \n \n \n UK Basket value inc VAT (£) \n \n \n 15.6 \n \n \n 15.2 \n \n \n 2.6 \n \n \n \n \n   \n Sales growth was driven by volume growth as customer numbers and transactions increased. UK basket value was up, with larger basket transactions continuing to grow, with the number of baskets over £30 up 10.1%. \n   \n \n \n \n \n 26 weeks ended \n   \n \n \n 28 Sep 24 \n £m \n \n \n 30 Sep 23 \n £m \n \n \n Change vs 2023/24 % \n \n \n \n \n Sales \n \n \n 4,176.5 \n \n \n 3,865.3 \n \n \n 8.1 \n \n \n \n \n Operating profit before adjusting items \n \n \n 213.1 \n \n \n 158.4 \n \n \n 34.5 \n \n \n \n \n Adjusted operating margin \n \n \n 5.1% \n \n \n 4.1% \n \n \n 1.0% pts \n \n \n \n \n   \n Operating profit before adjusting items was £213.1m compared with £158.4m in 2023/24, with an adjusted operating margin of 5.1% compared with 4.1% last year. \n   \n Gross margin improved with the benefits of the sourcing programme, which were reinvested largely in quality and trusted value. \n Operating costs as a percentage of sales decreased across all areas, as sales growth of 8.1% exceeded cost growth of 4.3%. The growth in operating costs was driven by: \n ·      Store staffing pay and volume related headwinds were partly offset by cost savings. \n ·      Other store costs were primarily driven by store openings. \n ·      Distribution and warehousing volume and inflation related headwinds were partly offset by cost savings. \n ·      Central costs included investment in digital and technology initiatives. \n   \n   \n \n \n \n \n Operating profit margin before adjusting items \n \n \n % \n \n \n \n \n 2023/24 \n \n \n 4.1 \n \n \n \n \n Gross margin \n \n \n 0.1 \n \n \n \n \n Store staffing \n \n \n 0.3 \n \n \n \n \n Other store costs \n \n \n 0.3 \n \n \n \n \n Distribution and warehousing \n \n \n 0.1 \n \n \n \n \n Central costs \n \n \n 0.2 \n \n \n \n \n 2024/25 \n \n \n 5.1 \n \n \n \n \n   \n Clothing & Home - UK and ROI \n UK and ROI Clothing & Home sales increased 4.7%, with a stronger performance in Q2 supported by more seasonal weather. Online sales growth was particularly strong in Q2 as we started to improve the online customer experience. \n   \n   \n \n \n \n \n Change vs 23/24 % \n \n \n Q1 \n \n \n Q2 \n \n \n HY \n \n \n \n \n Clothing & Home sales 1 \n \n \n 1.3 \n \n \n 8.1 \n \n \n 4.7 \n \n \n \n \n Clothing & Home like-for-like sales \n \n \n 1.4 \n \n \n 9.3 \n \n \n 5.3 \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Clothing & Home online sales \n \n \n 5.8 \n \n \n 16.5 \n \n \n 11.3 \n \n \n \n \n Clothing & Home store sales \n \n \n (0.7) \n \n \n 4.2 \n \n \n 1.7 \n \n \n \n \n Clothing & Home statutory revenue \n \n \n 953.7 \n \n \n 1,029.8 \n \n \n 1,983.5 \n \n \n \n \n 1 ' Sales' are statutory revenue plus the gross value of consignment sales ex. VAT \n   \n To enable greater insight into these movements, further detail is provided on the performance of each channel in the UK. \n   \n Online \n   \n \n \n \n \n 26 weeks ended \n \n \n 28 Sep 24 \n \n \n 30 Sep 23 \n \n \n Change vs 2023/24 % \n \n \n \n \n Active customers (m) 1 \n \n \n 7.0 \n \n \n 6.6 \n \n \n 6.1 \n \n \n \n \n Frequency 2 \n \n \n 2.7 \n \n \n 2.6 \n \n \n 3.8 \n \n \n \n \n Transactions (m) \n \n \n 18.8 \n \n \n 16.7 \n \n \n 12.6 \n \n \n \n \n Average Basket value (£) 3 \n \n \n 65.6 \n \n \n 66.3 \n \n \n (1.1) \n \n \n \n \n Returns Rate (%) 4 \n \n \n 33.8 \n \n \n 32.4 \n \n \n 1.4% pts \n \n \n \n \n 1 Active customers is the count of unique customers who transacted online in the last 26 weeks. \n 2 Frequency is the count of purchasing transactions divided by customers. \n 3 Prior year average basket value has been restated to reflect alternative source data as a result of cookie compliance tracking \n 4 Returns rate represents returns on dispatch sales. \n   \n Online sales were driven by active customer growth and increased frequency. This was partly offset by increased returns reflecting growth in trend-led product and partner brands. \n   \n Stores \n   \n \n \n \n \n 26 weeks ended \n   \n \n \n 28 Sep 24 \n   \n \n \n 30 Sep 23 \n \n \n Change vs 2023/24 % \n \n \n \n \n   \n \n \n \n \n Transactions, m (average/week) \n \n \n 1.71 \n \n \n 1.67 \n \n \n 2.4 \n \n \n \n \n Average basket value inc VAT pre returns (£) \n \n \n 40.2 \n \n \n 40.1 \n \n \n 0.2 \n \n \n \n \n   \n Clothing & Home store sales increased, with good growth in retail parks and shopping centres, supported by six new Full Line stores opened in 2023/24 and two new Full Line stores opening in the half. \n   \n Total Clothing & Home \n   \n \n \n \n \n 26 weeks ended \n   \n \n \n 28 Sep 24 \n £m \n \n \n 30 Sep 23 \n £m \n \n \n Change vs 2023/24 % \n \n \n \n \n Sales \n \n \n 2,026.8 \n \n \n 1,935.9 \n \n \n 4.7 \n \n \n \n \n Operating profit before adjusting items \n \n \n 242.2 \n \n \n 240.9 \n \n \n 0.5 \n \n \n \n \n Adjusted operating margin \n \n \n 12.0% \n \n \n 12.4% \n \n \n (0.4% pts) \n \n \n \n \n   \n Operating profit before adjusting items was £242.2m compared with £240.9m in 2023/24, with an adjusted operating margin of 12.0% compared with 12.4% last year. \n   \n Gross margin increased 0.4% pts, driven by better buying offsetting currency and labour cost headwinds. \n   \n Operating costs as a percentage of sales increased, as sales growth of 4.7% was less than cost growth of 6.8%. The growth in operating costs was driven by: \n   \n ·      Store staffing pay and volume costs, partly offset by cost savings. \n ·      Other store costs were broadly level due to energy and property efficiencies. \n ·      Distribution and warehousing volume, inflation and channel mix cost growth, only partly offset by cost savings. \n ·      Central costs included increased investment in infrastructure, website improvements, planning platform and brands trading capability as well as increased digital marketing costs. \n \n \n \n \n \n \n Operating profit margin before adjusting items \n \n \n % \n \n \n \n \n 2023/24 \n \n \n 12.4 \n \n \n \n \n Gross margin \n \n \n 0.4 \n \n \n \n \n Store staffing \n \n \n (0.2) \n \n \n \n \n Other store costs \n \n \n 0.6 \n \n \n \n \n Distribution and warehousing \n \n \n (0.4) \n \n \n \n \n Central costs \n \n \n (0.8) \n \n \n \n \n 2024/25 \n \n \n 12.0 \n \n \n \n \n   \n Within these results, store margin increased 0.5% pts to 14.4% while online margin declined 2.2% pts to 7.0%, reflecting the investment in the online and customer experience. \n   \n International \n   \n International sales decreased by 11.6% (10.3% at constant currency) continuing the trend of performance reported in H2 last year. \n This was driven by challenging trading conditions, particularly in owned stores in India due slower retail sales, and with softer C&H shipments following actions taken to reduce stock levels by franchise partners. \n Adjusted operating margin declined 4.2% pts due to lower sales, and a lower full price mix, which was partly offset by a reduction in costs. \n   \n \n \n \n \n 26 weeks ended \n   \n \n \n 28 Sep 24 \n £m \n \n \n 30 Sep 23 \n £m \n \n \n Change vs 2023/24 % \n \n \n Change vs \n 2023/24 CC % \n \n \n \n \n International \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Sales \n \n \n 321.0 \n \n \n 363.2 \n \n \n (11.6) \n \n \n (10.3) \n \n \n \n \n \n \n \n \n \n \n \n \n \n   \n \n \n   \n \n \n \n \n Operating profit before adjusting items \n \n \n 15.2 \n \n \n 32.4 \n \n \n (53.1) \n \n \n (52.0) \n \n \n \n \n Adjusted operating margin \n \n \n 4.7% \n \n \n 8.9% \n \n \n (4.2% pts) \n \n \n (4.1% pts) \n \n \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n \n \n Ocado Retail Limited \n The Group holds a 50% interest in Ocado Retail Limited (\"Ocado Retail\"). The remaining 50% interest is held by Ocado Group Plc (\"Ocado Group\"). Results for Ocado Retail are currently reported by Ocado Group and are not consolidated in this release. Half Year Results are consistent with the quarterly results reported by Ocado Group on behalf of Ocado Retail for the quarterly periods ended 2 June 2024 and 1 September 2024. \n M&S accounts for the joint venture as an associate interest as certain rights are conferred on Ocado Group Plc for an initial period of at least five years from acquisition in August 2019. Ocado Group plc is expected to give up those rights to the Group in April 2025. After Ocado Group plc give up the rights, Ocado Retail Limited will then be consolidated as a subsidiary of the Group, as set out in the initial agreement in August 2019. There will be no change in the economic interest of both shareholders in Ocado Retail Limited, or any consideration paid by the Group, as a result of this proposed change. \n Revenue increased by £160.4m in the 26 weeks to 1 September 2024. This was driven by active customer growth and higher items per basket, whilst average selling price remained broadly flat. \n M&S penetration of basket increased by 1.4% pts to 29.8% due to an increased number of M&S products on the Ocado website and improved availability. \n \n \n \n \n 26 weeks ended \n \n \n 1 Sep 24 \n £m \n \n \n 27 Aug 23 \n £m \n \n \n Change \n £m \n \n \n \n \n Revenue \n \n \n 1,324.8 \n \n \n 1,164.4 \n \n \n 160.4 \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Adjusted EBITDA \n \n \n 18.1 \n \n \n 5.3 \n \n \n 12.8 \n \n \n \n \n Adjusting items 1 \n \n \n (3.8) \n \n \n (33.4) \n \n \n 29.6 \n \n \n \n \n Depreciation and amortisation \n \n \n (29.9) \n \n \n (31.2) \n \n \n 1.3 \n \n \n \n \n Operating loss \n \n \n (15.6) \n \n \n (59.3) \n \n \n 43.7 \n \n \n \n \n Net interest charge \n \n \n (16.3) \n \n \n (13.5) \n \n \n (2.8) \n \n \n \n \n Taxation \n \n \n - \n \n \n (7.8) \n \n \n 7.8 \n \n \n \n \n Loss after tax \n   \n \n \n (31.9) \n \n \n (80.6) \n \n \n 48.7 \n \n \n \n \n M&S 50% share of loss after tax \n \n \n (16.0) \n \n \n (40.3) \n \n \n 24.3 \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Reported in M&S Group adjusted profit before tax \n \n \n (16.0) \n   \n \n \n (23.4) \n \n \n 7.4 \n \n \n \n \n Reported in M&S Group adjusting items \n \n \n - \n \n \n (16.9) \n \n \n 16.9 \n \n \n \n \n   \n 1 Adjusting items are defined within the Ocado Group Plc Annual Report and Accounts 2023. \n   \n Adjusted EBITDA improved versus last year driven by revenue growth ahead of operational costs, although partly offset by increased delivery costs and fees. \n Net interest charge increased, reflecting a higher interest expense on loans from shareholders, of which the M&S share is reported in the Group's finance income (£4.4m in 2024/25, £2.0m in 2023/24). \n Last year there was a tax charge of £7.8m, driven by the write-off of a deferred tax asset in the year. \n Overall Ocado Retail reported a loss after tax of £31.9m. M&S group share was a loss of £16.0m, which is reported in M&S Group adjusted profit before tax. \n   \n M&S Financial Services \n M&S Financial Services generated a profit before adjusting items of £8.2m, compared with £2.4m in 2023/24. This reflects a change in the arrangement between M&S and HSBC UK. On 9 April 2024, the Group and HSBC UK agreed a new seven-year deal focused on enhancing M&S' credit offering and payment solutions through M&S Financial Services and bringing together digital payments and loyalty for M&S customers. \n Details of the M&S Bank transformation and insurance mis-selling provisions can be found in adjusting items. \n   \n Net finance cost \n   \n \n \n \n \n 26 weeks ended \n \n \n 28 Sep 24 \n £m \n \n \n 30 Sep 23 \n £m \n \n \n Change vs 2023/24 £m \n \n \n \n \n Interest payable \n \n \n (22.3) \n \n \n (24.7) \n \n \n 2.4 \n \n \n \n \n Interest income \n \n \n 24.9 \n \n \n 22.7 \n \n \n 2.2 \n \n \n \n \n Net interest receivable/(payable) \n \n \n 2.6 \n \n \n (2.0) \n \n \n 4.6 \n \n \n \n \n Unwind of discount on Scottish Limited Partnership liability \n \n \n (0.4) \n \n \n (2.3) \n \n \n 1.9 \n \n \n \n \n Unwind of discount on provisions \n \n \n (2.7) \n \n \n (3.3) \n \n \n 0.6 \n \n \n \n \n Net financial interest \n \n \n (0.5) \n \n \n (7.6) \n \n \n 7.1 \n \n \n \n \n Net interest payable on lease liabilities \n \n \n (54.4) \n \n \n (54.7) \n \n \n 0.3 \n \n \n \n \n   \n \n \n   \n \n \n   \n \n \n \n \n \n \n \n Net finance cost before adjusting items \n \n \n (54.9) \n \n \n (62.3) \n \n \n 7.4 \n \n \n \n \n Adjusting items included in net finance cost \n \n \n (1.9) \n \n \n 72.9 \n \n \n (74.8) \n \n \n \n \n Net finance cost/(income) \n \n \n (56.8) \n \n \n 10.6 \n \n \n (67.4) \n \n \n \n \n   \n Net finance cost before adjusting items decreased £7.4m to £54.9m. This was driven by higher average interest rates on cash balances, an increase in interest receivable on shareholder loans to Ocado Retail, and reduced interest expense with the 2023 bonds and part of the 2025 and 2026 bonds repurchased. \n   \n Adjusting items within net finance costs decreased primarily due to last year's remeasurement of Ocado Retail Limited contingent consideration and a reduced net pension finance income (see note 3 for more information). \n   \n Group profit before tax and adjusting items \n   \n Group profit before tax and adjusting items was £407.8m, up 17.2% on 2023/24. The profit increase was primarily due to growth in the Food business and reduced share of group losses in Ocado Retail, offset by decreased profit of the International business. \n \n Group profit before tax \n \nGroup profit before tax was £391.9m, up 20.4% on 2023/24. This includes a net charge for adjusting items of £15.9m (2023/24: charge of £22.5m). \n   \n Adjusting items \nThe Group makes certain adjustments to statutory profit measures in order to derive alternative performance measures (APMs) that provide stakeholders with additional helpful information and aid comparability of the performance of the business. For further detail on these (charges)/gains and the Group's policy for adjusting items, please see notes 1 and 3 to the financial information. These (charges)/gains are reported as adjusting items on the basis that they are significant in quantum in current or future years and aid comparability from one period to the next. \n   \n \n \n \n \n 26 weeks ended \n   \n \n \n 28 Sep 24 \n £m \n \n \n 30 Sep 23 \n Restated £m \n \n \n Change vs 2023/24 £m \n \n \n \n \n Included in share of result of associate - Ocado Retail Limited \n \n \n (6.5) \n \n \n (23.4) \n \n \n 16.9 \n \n \n \n \n Amortisation and fair value adjustments arising as part of the investment in Ocado Retail Limited \n \n \n (6.5) \n \n \n (6.5) \n \n \n - \n \n \n \n \n Ocado Retail Limited - UK network capacity review \n \n \n - \n \n \n (16.9) \n \n \n 16.9 \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Included in operating profit \n \n \n (7.5) \n \n \n (72.0) \n \n \n 64.5 \n \n \n \n \n Strategic programmes - Store estate \n \n \n (26.8) \n \n \n (67.1) \n \n \n 40.3 \n \n \n \n \n Strategic programmes - Furniture simplification \n \n \n 5.9 \n \n \n - \n \n \n 5.9 \n \n \n \n \n Strategic programmes - Organisation \n \n \n - \n \n \n (3.5) \n \n \n 3.5 \n \n \n \n \n M&S Bank transformation and insurance mis-selling provisions \n \n \n (7.5) \n \n \n (1.0) \n \n \n (6.5) \n \n \n \n \n Acquisition of Gist Limited \n \n \n - \n \n \n (0.4) \n \n \n 0.4 \n \n \n \n \n Legal Settlement \n \n \n 20.9 \n \n \n - \n \n \n 20.9 \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Included in net finance income/(costs) \n \n \n (1.9) \n \n \n 72.9 \n \n \n (74.8) \n \n \n \n \n Remeasurement of Ocado Retail Limited contingent consideration \n \n \n - \n \n \n 64.7 \n \n \n (64.7) \n \n \n \n \n Net pension finance income \n \n \n 2.1 \n \n \n 12.1 \n \n \n (10.0) \n \n \n \n \n Net finance costs incurred in relation to Gist Limited deferred and contingent consideration \n \n \n (4.0) \n \n \n (3.9) \n \n \n (0.1) \n \n \n \n \n \n \n \n \n \n \n   \n \n \n \n \n \n \n \n Adjustments to profit before tax \n \n \n (15.9) \n \n \n (22.5) \n \n \n 6.6 \n \n \n \n \n   \n   \n Adjusting items recognised were a net charge of £15.9m. These include: \n   \n A charge of £26.8m in relation to store estate rotation plans. This reflects the revised view of store exit routes, assumptions, estimated closure costs, charges relating to the impairment of buildings, fixtures and fittings, and accelerated depreciation. \n   \n A credit of £5.9m in relation to furniture simplification, mainly reflecting the settlement of contractual obligations with suppliers. \n   \n A charge of £7.5m in relation to M&S Bank transformation and insurance mis-selling provisions, predominately relating to the settlement of the deficit which had been recognised by M&S Bank. Total programme costs to date are £12.5m and under the terms of the new agreement, material charges are expected over the next seven years. \n   \n The Group received a net credit of £20.9m as part of a legal settlement in relation to damages received from an independent third party following its involvement in anti-competitive behaviour that adversely impacted the Group. \n   \n For further details on adjusting items see note 3 to the financial information. \n   \n Taxation \n \nTaxes on income in the interim period are accrued using the tax rate that would be applicable to expected total annual earnings, adjusted for actual tax on adjusting items.  \n   \n The taxation charge in the income statement for the half year is based on the forecast full year tax rate on profit before adjusting items of 27.9% (last half year 31.4% restated; last full year 33.2%). This is higher than the UK statutory rate primarily due to the impact of non-deductible Ocado JV losses. \n   \n Overall, the effective tax rate on profit before taxation was 28.9% (last half year 36.5%; last full year 36.8%).  \n   \n Earnings per share \n   \n Basic earnings per share was 14.0p (2023/24: 10.6p). Adjusted basic earnings per share was 14.7p (2023/24 12.2p) due to higher adjusted profit year on year. \n   \n The weighted average number of ordinary shares in issue during the period was 2,021.7m (2023/24: 1,967.0m), with the weighted average number of diluted ordinary shares 2,103.3m (2023/24: 2,080.6m). \n   \n Cash flow \n   \n \n \n \n \n   \n \n \n 28 Sep 24 \n £m \n \n \n 30 Sep 23 \n £m \n \n \n Change vs 2023/24 \n £m \n \n \n \n \n Operating profit \n \n \n 448.7 \n \n \n 315.0 \n \n \n 133.7 \n \n \n \n \n Adjusting items within operating profit \n \n \n 14.0 \n \n \n 95.4 \n \n \n (81.4) \n \n \n \n \n Operating profit before adjusting items \n \n \n 462.7 \n \n \n 410.4 \n \n \n 52.3 \n \n \n \n \n Depreciation and amortisation before adjusting items \n \n \n 256.6 \n \n \n 258.5 \n \n \n (1.9) \n \n \n \n \n Cash lease and surrender payments \n \n \n (143.8) \n \n \n (164.4) \n \n \n 20.6 \n \n \n \n \n Working capital \n \n \n (263.1) \n \n \n (135.2) \n \n \n (127.9) \n \n \n \n \n Defined benefit scheme pension funding \n \n \n 2.8 \n \n \n 2.1 \n \n \n 0.7 \n \n \n \n \n Capex and disposals \n \n \n (215.4) \n \n \n (190.0) \n \n \n (25.4) \n \n \n \n \n Financial interest \n \n \n (11.6) \n \n \n (37.5) \n \n \n 25.9 \n \n \n \n \n Taxation \n \n \n (83.4) \n \n \n (73.8) \n \n \n (9.6) \n \n \n \n \n Employee-related share transactions \n \n \n 17.6 \n \n \n 9.5 \n \n \n 8.1 \n \n \n \n \n Share of loss from Associate \n \n \n 16.0 \n \n \n 23.4 \n \n \n (7.4) \n \n \n \n \n Loans to Associates \n \n \n - \n \n \n (47.0) \n \n \n 47.0 \n \n \n \n \n Share of results in other joint ventures \n \n \n (0.3) \n \n \n (0.2) \n \n \n (0.1) \n \n \n \n \n Adjusting items in cash flow \n \n \n (21.8) \n \n \n (28.1) \n \n \n 6.3 \n \n \n \n \n Free cash flow from operations \n \n \n 16.3 \n \n \n 27.7 \n \n \n (11.4) \n \n \n \n \n \n \n \n   \n \n \n   \n \n \n   \n \n \n \n \n Acquisitions, investments, and divestments \n \n \n (0.9) \n \n \n (2.1) \n \n \n 1.2 \n \n \n \n \n Free cash flow \n \n \n 15.4 \n \n \n 25.6 \n \n \n (10.2) \n \n \n \n \n Dividends paid \n \n \n (40.2) \n \n \n - \n \n \n (40.2) \n \n \n \n \n Free cash flow after shareholder returns \n \n \n (24.8) \n \n \n 25.6 \n \n \n (50.4) \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Opening net funds/ (debt) excluding lease liabilities \n \n \n 45.7 \n \n \n (355.6) \n \n \n 401.3 \n \n \n \n \n Free cash flow after shareholder returns \n \n \n (24.8) \n \n \n 25.6 \n \n \n (50.4) \n \n \n \n \n Exchange and other non-cash movements excluding leases \n \n \n 1.5 \n \n \n 10.1 \n \n \n (8.6) \n \n \n \n \n Closing net funds/ (debt) excluding lease liabilities \n \n \n 22.4 \n \n \n (319.9) \n \n \n 342.3 \n \n \n \n \n \n \n \n \n \n \n \n \n \n   \n \n \n \n \n Opening net debt \n \n \n (2,165.8) \n \n \n (2,637.2) \n \n \n 471.4 \n \n \n \n \n Free cash flow after shareholder returns \n \n \n (24.8) \n \n \n 25.6 \n \n \n (50.4) \n \n \n \n \n Decrease in lease obligations \n \n \n 102.3 \n \n \n 115.3 \n \n \n (13.0) \n \n \n \n \n New lease commitments and remeasurements \n \n \n (69.1) \n \n \n (67.3) \n \n \n (1.8) \n \n \n \n \n Exchange and other non-cash movements \n \n \n (6.7) \n \n \n (0.4) \n \n \n (6.3) \n \n \n \n \n Closing net debt \n \n \n ( 2,164.1) \n \n \n (2,564.0) \n \n \n 399.9 \n \n \n \n \n   \n   \n The business generated free cash flow from operations of £16.3m, a year-on-year decrease of £11.4m. Growth in operating profit before adjusting items was offset by an increase in working capital outflow the drivers of which included reduced payables terms in Clothing & Home from 90 to 75 days and a reduction in accrued costs . At the start of the year we anticipated a working capital outflow of c.£50m for FY25 and despite the first half movements our expectations are broadly unchanged. \n   \n Cash outflow from adjusting items was £21.8m. This included £13.3m relating to the store estate strategy, a £25.0m fee relating to a change in arrangements between M&S and HSBC UK for financial services, offset by £22.0m relating to a legal settlement. Dividend payments of £40.2m reflect the final dividend in July 2024. \n   \n The Group had closing net funds excluding lease liabilities of £22.4m at the end of the period. As a result of a decrease in lease obligations, Group net debt was £2,164.1m \n   \n Capital expenditure \n   \n \n \n \n \n 26 weeks ended \n \n \n 28 Sep 24 \n £m \n \n \n 30 Sep 23 \n £m \n \n \n Change vs 2023/24 \n £m \n \n \n \n \n Store renewal \n \n \n 48.2 \n \n \n 13.7 \n \n \n 34.5 \n \n \n \n \n New stores \n \n \n 49.5 \n \n \n 54.0 \n \n \n (4.5) \n \n \n \n \n International \n \n \n 3.6 \n \n \n 6.1 \n \n \n (2.5) \n \n \n \n \n Supply chain \n \n \n 37.2 \n \n \n 24.1 \n \n \n 13.1 \n \n \n \n \n Digital and Technology \n \n \n 49.0 \n \n \n 33.1 \n \n \n 15.9 \n \n \n \n \n Property maintenance \n \n \n 44.3 \n \n \n 48.8 \n \n \n (4.5) \n \n \n \n \n Capital expenditure before property disposals \n \n \n 231.8 \n \n \n 179.8 \n \n \n 52.0 \n \n \n \n \n Property disposals \n \n \n (0.1) \n \n \n (0.3) \n \n \n 0.2 \n \n \n \n \n Capital expenditure \n \n \n 231.7 \n \n \n 179.5 \n \n \n 52.2 \n \n \n \n \n Movement in capital accruals and other items \n \n \n (16.3) \n \n \n 10.5 \n \n \n (26.8) \n \n \n \n \n Capex and disposals as per cash flow \n \n \n 215.4 \n \n \n 190.0 \n \n \n 25.4 \n \n \n \n \n   \n Group capital expenditure before property disposals increased £52.0m to £231.8m due to increased investment in store renewal, supply chain and technology partially offset by reduced spend on new stores and International. \n   \n Store renewal costs were driven by four food store renewals which opened in the period and two of our larger Full Line stores which will be completed in H2. Spend on new stores was driven by the opening of two Full Line and three Food stores in the period plus the extension of Fosse Park which launched in October. \n   \n Supply chain expenditure reflects investment in expanding C&H fulfilment capabilities, as well as replacement of vehicles and handling equipment. Digital and technology includes technology replacement, network upgrades, and continued investment in website and app development. \n   \n Net debt \n   \n Group net debt decreased £399.9m since last half year driven by the repayment of medium term notes and a decrease in lease liabilities. \n   \n The composition of Group net debt is as follows: \n   \n \n \n \n \n 26 weeks ended \n \n \n 28 Sep 24 \n £m \n \n \n 30 Sep 23 \n £m \n \n \n Change vs 2023/24 \n £m \n \n \n \n \n Cash and cash equivalents 1 \n \n \n 618.7 \n \n \n 828.7 \n \n \n (210.0) \n \n \n \n \n Current financial assets and other 1 \n \n \n 143.8 \n \n \n 21.2 \n \n \n 122.6 \n \n \n \n \n Medium Term Notes \n \n \n (698.1) \n \n \n (1,047.9) \n \n \n 349.8 \n \n \n \n \n Partnership liability \n \n \n (42.0) \n \n \n (121.9) \n \n \n 79.9 \n \n \n \n \n Net funds / (debt) excluding lease liabilities \n \n \n 22.4 \n \n \n (319.9) \n \n \n 342.3 \n \n \n \n \n Lease liabilities \n \n \n (2,186.5) \n \n \n (2,244.1) \n \n \n 57.6 \n \n \n \n \n Group net debt \n \n \n (2,164.1) \n \n \n (2,564.0) \n \n \n 399.9 \n \n \n \n \n   \n 1 Cash and cash equivalents represents cash held on deposit for under 90 days. Current financial assets includes funds on deposit for longer than 90 days. \n   \n The Medium Term Notes include four bonds, with maturities out to 2037, and the associated accrued interest. During the period part of 2025 and 2026 bonds were repurchased totalling £190.3m. The USD 300m 2037 bond is valued by reference to the embedded exchange rate in the associated cross currency swaps. The full breakdown of maturities is as follows: \n   \n \n \n \n \n Bond and maturity date \n \n \n Value \n £m \n \n \n \n \n Jun 2025, GBP \n \n \n 105.9 \n \n \n \n \n May 2026, GBP \n \n \n 109.2 \n \n \n \n \n Jul 2027, GBP \n \n \n 249.1 \n \n \n \n \n Dec 2037, USD \n \n \n 251.9 \n \n \n \n \n Total principal value \n \n \n 716.1 \n \n \n \n \n Interest and FX revaluation \n \n \n (18.0) \n \n \n \n \n Total carrying value \n \n \n 698.1 \n \n \n \n \n   \n   \n \n \n \n \n Lease Liabilities \n \n \n 28 Sep 24 \n £m \n \n \n 30 Sep 23 \n £m \n \n \n Change vs \n 2023/24 £m \n \n \n Average lease length to break 1 \n \n \n \n \n Full Line stores \n \n \n (851.2) \n \n \n (877.2) \n \n \n 26.0 \n \n \n c.19yrs \n \n \n \n \n Food stores \n \n \n (689.7) \n \n \n (685.3) \n \n \n (4.4) \n \n \n c.9yrs \n \n \n \n \n Offices, warehouses and other \n \n \n (497.1) \n \n \n (534.8) \n \n \n 37.7 \n \n \n \n \n \n \n \n International \n \n \n (148.5) \n \n \n (146.8) \n \n \n (1.7) \n \n \n \n \n \n \n \n Total lease liability \n \n \n (2,186.5) \n \n \n (2,244.1) \n \n \n 57.6 \n \n \n \n \n \n \n \n 1 Liability-weighted average lease length to break \n \n Full Line store lease liabilities include £121.7m relating to stores identified as part of the UK store estate strategic programme. The average lease length on the stores are skewed by eight particularly long leases which are trading well in locations we wish to remain in. Excluding these eight leases, the average term to break of leases outside the programme is c.14 years. \n Food store lease liabilities include £25.9m relating to stores identified as part of the UK store estate strategic programme. Of the remaining lease liability, the average lease length to break is c.9 years. \n Within offices, warehouses and other lease liabilities, £141.7m relates to the sublet lease on our Merchant Square offices . \n   \n Pension \n   \n At 28 September 2024, the IAS 19 net retirement benefit surplus was £51.6m (FY 2023/24: £77.2m). There has been a decrease of £25.6m since the start of the year largely driven by the increase in gilt yields during the period. The pension scheme is fully hedged for movements in gilt yields. However, on an IAS 19 basis, there is an inherent basis risk to the scheme valuation, with the pension assets moving with underlying movements in rates and scheme liabilities exposed to the movement in corporate bond yields. In a normal period, this always results in some dislocation between movements in the scheme assets and liabilities. However, the increase in gilt yields in the year led to a larger dislocation. Nevertheless, there has been no material worsening of the scheme's overall funding position and the scheme remains fully funded on a technical provisions basis. \n The 2021 triennial valuation showed a funding surplus of £687m. The Company is reviewing the results of the 2024 actuarial valuation which indicate that the scheme continues to be well funded on a technical provisions basis. \n Given the strength of the valuation the Company is in discussions with the Trustees regarding the phasing of the current contributions. \n Marks and Spencer Scottish Limited Partnership \n Marks and Spencer Plc is a general partner of the Marks and Spencer Scottish Limited Partnership, with the UK defined benefit pension scheme, which is a limited partner. \n The Partnership holds £1.3bn (FY 2023/24: £1.3bn) of properties at book value which have been leased back to Marks and Spencer Plc. The first limited Partnership interest held by the scheme is included as a financial liability in the financial statements as it is a transferable financial instrument. The second Partnership interest held by the scheme is not a transferable financial instrument, the associated liability is not included on the Group's statement of financial position, rather the annual distribution is recognised as a contribution to the scheme each year. \n As noted in the last annual report, the Company committed to contributing c£200m to the pension scheme in 2023/24 and 2024/25. Of this amount, £40.0m was paid in 2023/24 and a further £40.0m in the first half of 2024/25. The Company is currently in discussions with the Trustees to reschedule the remaining £120m as part of a plan to ensure that the scheme is fully funded over time. \n Liquidity \n At 28 September 2024, the Group held cash and cash equivalents of £618.7m (2023/24: £828.7m). In the period, the Group bought back £190.3m of medium-term notes. \n The Group currently has an unused £850m revolving credit facility. With the facility undrawn, the Group had total liquidity headroom of over £1.4bn at 28 September 2024. \n Dividend \n With the Group generating a further improvement in operating performance, balance sheet and credit metrics, an interim dividend of 1p per share has been declared. This will be payable on 10 January 2025 to shareholders on the register of members as at close of business on 29 November 2024. \n Statement of financial position \n Net assets were £3,031.0m at the period end. The profit made in the period and the reduction in borrowings resulted in an overall increase in net assets of 7.1% since the start of the year. \n Outcome of audit tender process \n Following the completion of a competitive tender process, the Board has approved the proposed appointment of Deloitte LLP as the Company's external auditor. Deloitte will continue to audit the Group and the Company's financial statements for the year ending in March 2025 and the appointment will be subject to shareholder approval of a resolution at the Annual General Meeting to be held in 2025. \n Principal risks and uncertainties \n The principal risks and uncertainties which could impact the Group's long-term performance and additional information on the overarching impact from the external environment across the Group's risk profile are set out on pages 64 - 70 of the Group's 2024 Annual Report and Financial Statements, along with mitigating activities relevant to each risk. Additionally, information on financial risk management is set out on pages 170 - 179. A copy of the Annual Report and Financial Statements is available on the Group's website: corporate.marksandspencer.com . \n The Board of Directors have considered the principal risks and uncertainties disclosed in the 2024 Annual Report and Financial Statements and confirm that they remain relevant for the remainder of the financial year. The principal risks covered are: \n ·      An uncertain environment; \n ·      Business transformation; \n ·      Joint Ventures, including Ocado Retail and franchise; \n ·      Business continuity and resilience; \n ·      Information security; \n ·      Culture, talent and capability; \n ·      Product safety and integrity; \n ·      Corporate compliance and responsibility; \n ·      Climate change and environmental responsibility; and \n ·      Liquidity and funding. \n   \n Statement of directors' responsibilities \n The directors confirm that, to the best of their knowledge, this condensed consolidated interim financial information has been prepared in accordance with UK-adopted IAS 34 and that the interim management report includes a fair review of the information required by DTR 4.2.4R, DTR 4.2.7R and DTR 4.2.8R, namely: \n ·      the condensed set of financial statements gives a true and fair view of the assets, liabilities, financial position, cash flows and profit or loss of the issuer, or undertakings included in the consolidation; \n ·      an indication of important events that have occurred during the first six months and their impact on the condensed set of financial statements, and a description of the principal risks and uncertainties for the remaining six months of the financial year; and \n ·      material related party transactions in the first six months and any material changes in the related party transactions described in the last annual report. \n   \n The directors of Marks and Spencer Group plc are listed in the Group's 2024 Annual Report and Financial Statements, with the exception of the following changes in the period: Mr A Fisher resigned on 2 July 2024, and Ms K Bickerstaffe resigned on 2 July 2024. A list of current directors is maintained on the Group's website: corporate.marksandspencer.com . \n By order of the Board \n Stuart Machin \n Chief Executive \n   \n   \n \n \n \n \n Condensed consolidated income statement \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n   \n \n \n \n \n \n \n \n \n \n \n 26 weeks ended \n \n \n 52 weeks ended \n \n \n   \n \n \n \n \n \n \n \n \n \n \n 28 Sep 2024 \n \n \n 30 Sep 2023 \n \n \n 30 Mar 2024 \n \n \n   \n \n \n \n \n \n \n \n \n \n \n (Unaudited) \n \n \n (Unaudited) \n (restated) \n \n \n (Audited) \n \n \n   \n \n \n \n \n \n \n \n \n \n \n Total \n \n \n Total \n \n \n Total \n \n \n   \n \n \n \n \n \n \n \n Notes \n \n \n £m \n \n \n £m \n \n \n £m \n \n \n   \n \n \n \n \n \n \n \n \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n \n \n Revenue \n \n \n 2 \n \n \n 6,481.0 \n \n \n 6,134.0 \n \n \n 13,040.1 \n \n \n   \n \n \n \n \n   \n \n \n \n \n \n   \n \n \n \n \n \n \n \n \n   \n \n \n \n \n Share of result of associate - Ocado Retail Limited \n \n \n 2, 3, 8 \n \n \n (22.5) \n \n \n (46.8) \n \n \n (79.9) \n \n \n   \n \n \n \n \n   \n \n \n   \n \n \n   \n \n \n \n \n \n \n \n \n   \n \n \n \n \n Operating profit \n \n \n 2, 3 \n \n \n 448.7 \n \n \n 315.0 \n \n \n 714.2 \n \n \n   \n \n \n \n \n \n \n \n \n \n \n   \n \n \n \n \n \n \n \n \n   \n \n \n \n \n Finance income \n \n \n 4 \n \n \n 29.8 \n \n \n 102.3 \n \n \n 146.7 \n \n \n   \n \n \n \n \n Finance costs \n \n \n 4 \n \n \n (86.6) \n \n \n (91.7) \n \n \n (188.4) \n \n \n   \n \n \n \n \n \n \n \n \n \n \n   \n \n \n \n \n \n \n \n \n   \n \n \n \n \n Profit before tax \n \n \n 2, 3 \n \n \n 391.9 \n \n \n 325.6 \n \n \n 672.5 \n \n \n   \n \n \n \n \n \n \n \n \n \n \n   \n \n \n \n \n \n \n \n \n   \n \n \n \n \n Income tax expense \n \n \n 5 \n \n \n (113.3) \n \n \n (118.7) \n \n \n (247.3) \n \n \n   \n \n \n \n \n \n \n \n \n \n \n   \n \n \n \n \n \n \n \n \n   \n \n \n \n \n Profit for the period \n \n \n   \n \n \n 278.6 \n \n \n 206.9 \n \n \n 425.2 \n \n \n   \n \n \n \n \n   \n \n \n   \n \n \n   \n \n \n \n \n \n \n \n \n   \n \n \n \n \n Attributable to: \n \n \n   \n \n \n   \n \n \n \n \n \n \n \n \n   \n \n \n \n \n Owners of the parent \n \n \n   \n \n \n 282.1 \n \n \n 208.0 \n \n \n 431.2 \n \n \n   \n \n \n \n \n Non-controlling interests \n \n \n   \n \n \n (3.5) \n \n \n (1.1) \n \n \n (6.0) \n \n \n   \n \n \n \n \n   \n \n \n   \n \n \n 278.6 \n \n \n 206.9 \n \n \n 425.2 \n \n \n   \n \n \n \n \n   \n \n \n   \n \n \n   \n \n \n \n \n \n \n \n \n   \n \n \n \n \n Earnings per share \n \n \n   \n \n \n   \n \n \n \n \n \n \n \n \n   \n \n \n \n \n Basic \n \n \n 6 \n \n \n 14.0p \n \n \n 10.6p \n \n \n 21.9p \n \n \n   \n \n \n \n \n Diluted \n \n \n 6 \n \n \n 13.4p \n \n \n 10.0p \n \n \n 20.8p \n \n \n   \n \n \n \n \n \n \n \n \n \n \n   \n \n \n \n \n \n \n \n \n   \n \n \n \n \n \n \n \n \n \n \n   \n \n \n \n \n \n \n \n \n   \n \n \n \n \n Reconciliation of adjusted profit before tax: \n \n \n   \n \n \n \n \n Profit before tax \n \n \n \n \n \n 391.9 \n \n \n 325.6 \n \n \n 672.5 \n \n \n   \n \n \n \n \n Adjusting items 1 \n \n \n 3 \n \n \n 15.9 \n \n \n 22.5 \n \n \n 43.9 \n \n \n   \n \n \n \n \n Profit before tax & adjusting items 1 - non-GAAP measure \n \n \n 407.8 \n \n \n 348.1 \n \n \n 716.4 \n \n \n   \n \n \n \n \n   \n \n \n \n \n \n   \n \n \n \n \n \n \n \n \n   \n \n \n \n \n Adjusted earnings per share - non-GAAP measure \n \n \n \n \n \n \n \n \n   \n \n \n \n \n Basic 1 \n \n \n 6 \n \n \n 14.7p \n \n \n 12.2p \n \n \n 24.6p \n \n \n   \n \n \n \n \n Diluted 1 \n \n \n 6 \n \n \n 14.1p \n \n \n 11.5p \n \n \n 23.3p \n \n \n   \n \n \n \n \n 1 Comparative information has been restated due to a change in adjusting items classification. See note 1 for details. \n \n \n   \n \n \n \n \n \n \n \n   \n \n \n \n \n Condensed consolidated statement of comprehensive income \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n   \n \n \n \n \n \n \n \n \n \n \n 26 weeks ended \n \n \n 52 weeks ended \n \n \n   \n \n \n \n \n \n \n \n \n \n \n 28 Sep 2024 \n \n \n 30 Sep 2023 \n \n \n 30 Mar 2024 \n \n \n   \n \n \n \n \n \n \n \n \n \n \n (Unaudited) \n \n \n (Unaudited) \n \n \n (Audited) \n \n \n   \n \n \n \n \n \n \n \n Notes \n \n \n £m \n \n \n £m \n \n \n £m \n \n \n   \n \n \n \n \n Profit for the period \n \n \n \n \n \n 278.6 \n \n \n 206.9 \n \n \n 425.2 \n \n \n   \n \n \n \n \n Other comprehensive income/(expense): \n \n \n \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n \n \n Items that will not be reclassified subsequently to profit or loss \n \n \n \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n \n \n Remeasurements of retirement benefit schemes \n \n \n 9 \n \n \n (24.8) \n \n \n (307.5) \n \n \n (419.2) \n \n \n   \n \n \n \n \n Tax credit on retirement benefit schemes \n \n \n \n \n \n 6.3 \n \n \n 76.9 \n \n \n 104.8 \n \n \n   \n \n \n \n \n \n \n \n \n \n \n (18.5) \n \n \n (230.6) \n \n \n (314.4) \n \n \n   \n \n \n \n \n Items that may be reclassified subsequently to profit or loss \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n   \n \n \n \n \n Foreign currency translation differences \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n   \n \n \n \n \n - movement recognised in other comprehensive income \n \n \n \n \n \n (8.7) \n \n \n (4.4) \n \n \n (11.5) \n \n \n   \n \n \n \n \n Cash flow hedges \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n   \n \n \n \n \n - fair value movements in other comprehensive income \n \n \n \n \n \n (74.1) \n \n \n 26.3 \n \n \n (27.5) \n \n \n   \n \n \n \n \n - reclassified and reported in profit or loss \n \n \n \n \n \n 13.6 \n \n \n (3.1) \n \n \n 5.3 \n \n \n   \n \n \n \n \n Tax credit/(charge) on cash flow hedges \n \n \n \n \n \n 15.4 \n \n \n (5.4) \n \n \n 6.1 \n \n \n   \n \n \n \n \n \n \n \n \n \n \n (53.8) \n \n \n 13.4 \n \n \n (27.6) \n \n \n   \n \n \n \n \n Other comprehensive expense for the period, net of tax \n \n \n \n \n \n (72.3) \n \n \n (217.2) \n \n \n (342.0) \n \n \n   \n \n \n \n \n Total comprehensive income/(expense) for the period \n \n \n   \n \n \n 206.3 \n \n \n (10.3) \n \n \n 83.2 \n \n \n   \n \n \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n \n \n Attributable to: \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n \n \n Owners of the parent \n \n \n \n \n \n 209.8 \n \n \n (9.2) \n \n \n 89.2 \n \n \n   \n \n \n \n \n Non-controlling interests \n \n \n \n \n \n (3.5) \n \n \n (1.1) \n \n \n (6.0) \n \n \n   \n \n \n \n \n   \n \n \n   \n \n \n 206.3 \n \n \n (10.3) \n \n \n 83.2 \n \n \n   \n \n \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n \n \n Condensed consolidated statement of financial position \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n   \n \n \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n   \n \n \n \n \n \n \n \n \n \n \n As at \n \n \n As at \n \n \n As at \n \n \n   \n \n \n \n \n \n \n \n \n \n \n 28 Sep 2024 \n \n \n 30 Sep 2023 \n \n \n 30 Mar 2024 \n \n \n   \n \n \n \n \n \n \n \n \n \n \n (Unaudited) \n \n \n (Unaudited) \n \n \n (Audited) \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n (restated) \n \n \n \n \n \n   \n \n \n \n \n \n \n \n Notes \n \n \n £m \n \n \n £m \n \n \n £m \n \n \n   \n \n \n \n \n Assets \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n \n \n Non-current assets \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n \n \n Intangible assets \n \n \n \n \n \n 170.2 \n \n \n 179.5 \n \n \n 179.5 \n \n \n   \n \n \n \n \n Property, plant and equipment \n \n \n \n \n \n 5,211.8 \n \n \n 5,119.4 \n \n \n 5,190.1 \n \n \n   \n \n \n \n \n Investment property \n \n \n \n \n \n 11.4 \n \n \n 11.8 \n \n \n 11.6 \n \n \n   \n \n \n \n \n Investment in joint ventures and associates \n \n \n 8 \n \n \n 662.1 \n \n \n 721.3 \n \n \n 684.2 \n \n \n   \n \n \n \n \n Other financial assets \n \n \n 11 \n \n \n 8.7 \n \n \n 12.5 \n \n \n 12.6 \n \n \n   \n \n \n \n \n Retirement benefit asset \n \n \n 9 \n \n \n 56.2 \n \n \n 184.2 \n \n \n 81.8 \n \n \n   \n \n \n \n \n Trade and other receivables \n \n \n \n \n \n 390.7 \n \n \n 348.7 \n \n \n 356.7 \n \n \n   \n \n \n \n \n Derivative financial instruments \n \n \n 11 \n \n \n 1.4 \n \n \n 6.1 \n \n \n 0.7 \n \n \n   \n \n \n \n \n Deferred tax assets \n \n \n \n \n \n 11.7 \n \n \n 7.6 \n \n \n 11.7 \n \n \n   \n \n \n \n \n   \n \n \n \n \n \n 6,524.2 \n \n \n 6,591.1 \n \n \n 6,528.9 \n \n \n   \n \n \n \n \n Current assets \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n \n \n Inventories \n \n \n \n \n \n 979.9 \n \n \n 999.7 \n \n \n 776.9 \n \n \n   \n \n \n \n \n Other financial assets \n \n \n 11 \n \n \n 161.7 \n \n \n 9.0 \n \n \n 12.3 \n \n \n   \n \n \n \n \n Trade and other receivables \n \n \n \n \n \n 367.1 \n \n \n 313.0 \n \n \n 302.0 \n \n \n   \n \n \n \n \n Derivative financial instruments \n \n \n 11 \n \n \n 7.5 \n \n \n 25.3 \n \n \n 6.8 \n \n \n   \n \n \n \n \n Current tax assets \n \n \n \n \n \n 21.8 \n \n \n 6.5 \n \n \n 32.9 \n \n \n   \n \n \n \n \n Cash and cash equivalents \n \n \n \n \n \n 618.7 \n \n \n 828.7 \n \n \n 1,022.4 \n \n \n   \n \n \n \n \n   \n \n \n \n \n \n 2,156.7 \n \n \n 2,182.2 \n \n \n 2,153.3 \n \n \n   \n \n \n \n \n Total assets \n \n \n   \n \n \n 8,680.9 \n \n \n 8,773.3 \n \n \n 8,682.2 \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n   \n \n \n \n \n Liabilities \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n \n \n Current liabilities \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n \n \n Trade and other payables \n \n \n \n \n \n 2,132.7 \n \n \n 2,141.9 \n \n \n 2,107.9 \n \n \n   \n \n \n \n \n Borrowings and other financial liabilities \n \n \n \n \n \n 330.7 \n \n \n 335.4 \n \n \n 250.4 \n \n \n   \n \n \n \n \n Partnership liability to the Marks & Spencer UK Pension Scheme \n \n \n 10 \n \n \n 49.2 \n \n \n 127.1 \n \n \n 88.8 \n \n \n   \n \n \n \n \n Derivative financial instruments \n \n \n 11 \n \n \n 83.1 \n \n \n 20.8 \n \n \n 20.0 \n \n \n   \n \n \n \n \n Provisions \n \n \n \n \n \n 30.6 \n \n \n 38.1 \n \n \n 47.6 \n \n \n   \n \n \n \n \n Current tax liabilities \n \n \n \n \n \n 1.5 \n \n \n 57.3 \n \n \n 1.5 \n \n \n   \n \n \n \n \n   \n \n \n   \n \n \n 2,627.8 \n \n \n 2,720.6 \n \n \n 2,516.2 \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n   \n \n \n \n \n Non-current liabilities \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n \n \n Retirement benefit deficit \n \n \n 9 \n \n \n 4.6 \n \n \n 4.5 \n \n \n 4.6 \n \n \n   \n \n \n \n \n Trade and other payables \n \n \n \n \n \n 120.1 \n \n \n 116.5 \n \n \n 116.7 \n \n \n   \n \n \n \n \n Borrowings and other financial liabilities \n \n \n \n \n \n 2,553.2 \n \n \n 2,956.5 \n \n \n 2,882.8 \n \n \n   \n \n \n \n \n Derivative financial instruments \n \n \n 11 \n \n \n 26.1 \n \n \n 5.6 \n \n \n 21.9 \n \n \n   \n \n \n \n \n Provisions \n \n \n \n \n \n 109.3 \n \n \n 83.9 \n \n \n 104.1 \n \n \n   \n \n \n \n \n Deferred tax liabilities \n \n \n \n \n \n 208.8 \n \n \n 172.3 \n \n \n 205.8 \n \n \n   \n \n \n \n \n \n \n \n \n \n \n 3,022.1 \n \n \n 3,339.3 \n \n \n 3,335.9 \n \n \n   \n \n \n \n \n Total liabilities \n \n \n   \n \n \n 5,649.9 \n \n \n 6,059.9 \n \n \n 5,852.1 \n \n \n   \n \n \n \n \n Net assets \n \n \n   \n \n \n 3,031.0 \n \n \n 2,713.4 \n \n \n 2,830.1 \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n   \n \n \n \n \n Equity \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n \n \n Issued share capital \n \n \n \n \n \n 20.6 \n \n \n 20.0 \n \n \n 20.5 \n \n \n   \n \n \n \n \n Share premium account \n \n \n \n \n \n 975.7 \n \n \n 911.6 \n \n \n 967.0 \n \n \n   \n \n \n \n \n Capital redemption reserve \n \n \n \n \n \n 2,680.4 \n \n \n 2,680.4 \n \n \n 2,680.4 \n \n \n   \n \n \n \n \n Hedging reserve \n \n \n \n \n \n (44.8) \n \n \n 19.4 \n \n \n (8.4) \n \n \n   \n \n \n \n \n Cost of hedging reserve \n \n \n \n \n \n 13.9 \n \n \n 4.1 \n \n \n 5.4 \n \n \n   \n \n \n \n \n Other reserve \n \n \n \n \n \n (6,542.2) \n \n \n (6,542.2) \n \n \n (6,542.2) \n \n \n   \n \n \n \n \n Foreign exchange reserve \n \n \n \n \n \n (89.8) \n \n \n (74.0) \n \n \n (81.1) \n \n \n   \n \n \n \n \n Retained earnings \n \n \n \n \n \n 6,021.8 \n \n \n 5,690.8 \n \n \n 5,789.6 \n \n \n   \n \n \n \n \n Equity attributable to owners of the parent \n \n \n   \n \n \n 3,035.6 \n \n \n 2,710.1 \n \n \n 2,831.2 \n \n \n   \n \n \n \n \n Non-controlling interests \n \n \n \n \n \n (4.6) \n \n \n 3.3 \n \n \n (1.1) \n \n \n   \n \n \n \n \n Total equity \n \n \n   \n \n \n 3,031.0 \n \n \n 2,713.4 \n \n \n 2,830.1 \n \n \n   \n \n \n \n \n   \n \n \n   \n \n \n \n \n \n   \n \n \n   \n \n \n   \n \n \n \n \n Deferred tax and retained earnings have been restated in the comparative information. See note 1 for further details. The notes on pages 29 to 48 form an integral part of the condensed consolidated interim financial information. \n \n \n   \n \n \n \n \n \n \n \n   \n \n \n \n \n Condensed consolidated statement of changes in equity \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n 26 weeks ended 28 September 2024 \n (Unaudited) \n \n \n Ordinary share capital \n \n \n Share premium account \n \n \n Capital redemption reserve \n \n \n Hedging reserve \n \n \n Cost of hedging reserve \n \n \n Other reserve 1 \n \n \n Foreign exchange reserve \n \n \n Retained earnings \n \n \n Total \n \n \n Non-controlling interest \n \n \n Total equity \n \n \n \n \n \n \n \n £m \n \n \n £m \n \n \n £m \n \n \n £m \n \n \n £m \n \n \n £m \n \n \n £m \n \n \n £m \n \n \n £m \n \n \n £m \n \n \n £m \n \n \n \n \n As at 31 March 2024 \n \n \n 20.5 \n \n \n 967.0 \n \n \n 2,680.4 \n \n \n (8.4) \n \n \n 5.4 \n \n \n (6,542.2) \n \n \n (81.1) \n \n \n 5,789.6 \n \n \n 2,831.2 \n \n \n (1.1) \n \n \n 2,830.1 \n \n \n \n \n Profit for the period \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n 282.1 \n \n \n 282.1 \n \n \n (3.5) \n \n \n 278.6 \n \n \n \n \n Other comprehensive income/(expense): \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Foreign currency translation \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n - movement recognised in other comprehensive income \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n (8.7) \n \n \n - \n \n \n (8.7) \n \n \n - \n \n \n (8.7) \n \n \n \n \n Remeasurements of retirement benefit schemes \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n (24.8) \n \n \n (24.8) \n \n \n - \n \n \n (24.8) \n \n \n \n \n Tax credit on retirement benefit schemes \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n 6.3 \n \n \n 6.3 \n \n \n - \n \n \n 6.3 \n \n \n \n \n Cash flow hedges \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n - fair value movements in other comprehensive income \n \n \n - \n \n \n - \n \n \n - \n \n \n (85.4) \n \n \n 11.3 \n \n \n - \n \n \n - \n \n \n - \n \n \n (74.1) \n \n \n - \n \n \n (74.1) \n \n \n \n \n - reclassified and reported in profit or loss \n \n \n - \n \n \n - \n \n \n - \n \n \n 13.6 \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n 13.6 \n \n \n - \n \n \n 13.6 \n \n \n \n \n Tax on cash flow hedges \n \n \n - \n \n \n - \n \n \n - \n \n \n 18.2 \n \n \n (2.8) \n \n \n - \n \n \n - \n \n \n - \n \n \n 15.4 \n \n \n - \n \n \n 15.4 \n \n \n \n \n Other comprehensive income/(expense) \n \n \n - \n \n \n - \n \n \n - \n \n \n (53.6) \n \n \n 8.5 \n \n \n - \n \n \n (8.7) \n \n \n (18.5) \n \n \n (72.3) \n \n \n - \n \n \n (72.3) \n \n \n \n \n Total comprehensive income/(expense) \n \n \n - \n \n \n - \n \n \n - \n \n \n (53.6) \n \n \n 8.5 \n \n \n - \n \n \n (8.7) \n \n \n 263.6 \n \n \n 209.8 \n \n \n (3.5) \n \n \n 206.3 \n \n \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Cash flow hedges recognised in inventories \n \n \n - \n \n \n - \n \n \n - \n \n \n 23.0 \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n 23.0 \n \n \n - \n \n \n 23.0 \n \n \n \n \n Tax on cash flow hedges recognised in inventories \n \n \n - \n \n \n - \n \n \n - \n \n \n (5.8) \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n (5.8) \n \n \n - \n \n \n (5.8) \n \n \n \n \n Transactions with owners: \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Dividends \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n (40.2) \n \n \n (40.2) \n \n \n - \n \n \n (40.2) \n \n \n \n \n Shares issued in respect of employee share options \n \n \n 0.1 \n \n \n 8.7 \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n 8.8 \n \n \n - \n \n \n 8.8 \n \n \n \n \n Purchase of shares held by employee trusts \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n (17.6) \n \n \n (17.6) \n \n \n - \n \n \n (17.6) \n \n \n \n \n Credit for share-based payments \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n 26.4 \n \n \n 26.4 \n \n \n - \n \n \n 26.4 \n \n \n \n \n As at 28 September 2024 \n \n \n 20.6 \n \n \n 975.7 \n \n \n 2,680.4 \n \n \n (44.8) \n \n \n 13.9 \n \n \n (6,542.2) \n \n \n (89.8) \n \n \n 6,021.8 \n \n \n 3,035.6 \n \n \n (4.6) \n \n \n 3,031.0 \n \n \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n \n \n 26 weeks ended 30 September 2023 \n (Unaudited) \n \n \n Ordinary share capital \n \n \n Share premium account \n \n \n Capital redemption reserve \n \n \n Hedging reserve \n \n \n Cost of hedging reserve \n \n \n Other reserve 1 \n \n \n Foreign exchange reserve \n \n \n Retained earnings \n \n \n Total \n \n \n Non-controlling interest \n \n \n Total equity \n \n \n \n \n \n \n \n £m \n \n \n £m \n \n \n £m \n \n \n £m \n \n \n £m \n \n \n £m \n \n \n £m \n \n \n £m \n \n \n £m \n \n \n £m \n \n \n £m \n \n \n \n \n As at 2 April 2023 \n \n \n 19.8 \n \n \n 910.7 \n \n \n 2,680.4 \n \n \n (31.9) \n \n \n 4.2 \n \n \n (6,542.2) \n \n \n (69.6) \n \n \n 5,839.1 \n \n \n 2,810.5 \n \n \n 4.4 \n \n \n 2,814.9 \n \n \n \n \n Prior period restatement 2 \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n (134.1) \n \n \n (134.1) \n \n \n - \n \n \n (134.1) \n \n \n \n \n As at 2 April 2023 (restated) \n \n \n 19.8 \n \n \n 910.7 \n \n \n 2,680.4 \n \n \n (31.9) \n \n \n 4.2 \n \n \n (6,542.2) \n \n \n (69.6) \n \n \n 5,705.0 \n \n \n 2,676.4 \n \n \n 4.4 \n \n \n 2,680.8 \n \n \n \n \n Profit for the period \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n 208.0 \n \n \n 208.0 \n \n \n (1.1) \n \n \n 206.9 \n \n \n \n \n Other comprehensive (expense)/income: \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Foreign currency translation \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n - movement recognised in other comprehensive income \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n (4.4) \n \n \n - \n \n \n (4.4) \n \n \n - \n \n \n (4.4) \n \n \n \n \n Remeasurements of retirement benefit schemes \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n (307.5) \n \n \n (307.5) \n \n \n - \n \n \n (307.5) \n \n \n \n \n Tax credit on retirement benefit schemes \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n 76.9 \n \n \n 76.9 \n \n \n - \n \n \n 76.9 \n \n \n \n \n Cash flow hedges \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n - fair value movements in other comprehensive income \n \n \n - \n \n \n - \n \n \n - \n \n \n 26.5 \n \n \n (0.2) \n \n \n - \n \n \n - \n \n \n - \n \n \n 26.3 \n \n \n - \n \n \n 26.3 \n \n \n \n \n - reclassified and reported in profit or loss \n \n \n - \n \n \n - \n \n \n - \n \n \n (3.1) \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n (3.1) \n \n \n - \n \n \n (3.1) \n \n \n \n \n Tax on cash flow hedges \n \n \n - \n \n \n - \n \n \n - \n \n \n (5.5) \n \n \n 0.1 \n \n \n - \n \n \n - \n \n \n - \n \n \n (5.4) \n \n \n - \n \n \n (5.4) \n \n \n \n \n Other comprehensive income/(expense) \n \n \n - \n \n \n - \n \n \n - \n \n \n 17.9 \n \n \n (0.1) \n \n \n - \n \n \n (4.4) \n \n \n (230.6) \n \n \n (217.2) \n \n \n - \n \n \n (217.2) \n \n \n \n \n Total comprehensive income/(expense) \n \n \n - \n \n \n - \n \n \n - \n \n \n 17.9 \n \n \n (0.1) \n \n \n - \n \n \n (4.4) \n \n \n (22.6) \n \n \n (9.2) \n \n \n (1.1) \n \n \n (10.3) \n \n \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Cash flow hedges recognised in inventories \n \n \n - \n \n \n - \n \n \n - \n \n \n 44.6 \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n 44.6 \n \n \n - \n \n \n 44.6 \n \n \n \n \n Tax on cash flow hedges recognised in inventories \n \n \n - \n \n \n - \n \n \n - \n \n \n (11.2) \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n (11.2) \n \n \n - \n \n \n (11.2) \n \n \n \n \n Transactions with owners: \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Shares issued in respect of employee share options \n \n \n 0.2 \n \n \n 0.9 \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n 1.1 \n \n \n - \n \n \n 1.1 \n \n \n \n \n Purchase of shares held by employee trusts \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n (16.7) \n \n \n (16.7) \n \n \n - \n \n \n (16.7) \n \n \n \n \n Credit for share-based payments \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n 25.1 \n \n \n 25.1 \n \n \n - \n \n \n 25.1 \n \n \n \n \n As at 30 September 2023 \n \n \n 20.0 \n \n \n 911.6 \n \n \n 2,680.4 \n \n \n 19.4 \n \n \n 4.1 \n \n \n (6,542.2) \n \n \n (74.0) \n \n \n 5,690.8 \n \n \n 2,710.1 \n \n \n 3.3 \n \n \n 2,713.4 \n \n \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n 52 weeks ended 30 March 2024 \n (Audited) \n \n \n Ordinary share capital \n \n \n Share premium account \n \n \n Capital redemption reserve \n \n \n Hedging reserve \n \n \n Cost of hedging reserve \n \n \n Other reserve 1 \n \n \n Foreign exchange reserve \n \n \n Retained earnings \n \n \n Total \n \n \n Non-controlling interest \n \n \n Total equity \n \n \n \n \n \n \n \n £m \n \n \n £m \n \n \n £m \n \n \n £m \n \n \n £m \n \n \n £m \n \n \n £m \n \n \n £m \n \n \n £m \n \n \n £m \n \n \n £m \n \n \n \n \n As at 2 April 2023 \n \n \n 19.8 \n \n \n 910.7 \n \n \n 2,680.4 \n \n \n (31.9) \n \n \n 4.2 \n \n \n (6,542.2) \n \n \n (69.6) \n \n \n 5,705.0 \n \n \n 2,676.4 \n \n \n 4.4 \n \n \n 2,680.8 \n \n \n \n \n Profit for the year \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n 431.2 \n \n \n 431.2 \n \n \n (6.0) \n \n \n 425.2 \n \n \n \n \n Other comprehensive income/(expense): \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Foreign currency translation \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n - movement recognised in other comprehensive income \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n (11.5) \n \n \n - \n \n \n (11.5) \n \n \n - \n \n \n (11.5) \n \n \n \n \n Remeasurements of retirement benefit schemes \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n (419.2) \n \n \n (419.2) \n \n \n - \n \n \n (419.2) \n \n \n \n \n Tax credit on retirement benefit schemes \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n 104.8 \n \n \n 104.8 \n \n \n - \n \n \n 104.8 \n \n \n \n \n Cash flow hedges \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n - fair value movements in other comprehensive income \n \n \n - \n \n \n - \n \n \n - \n \n \n (29.1) \n \n \n 1.6 \n \n \n - \n \n \n - \n \n \n - \n \n \n (27.5) \n \n \n - \n \n \n (27.5) \n \n \n \n \n - reclassified and reported in profit or loss \n \n \n - \n \n \n - \n \n \n - \n \n \n 5.3 \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n 5.3 \n \n \n - \n \n \n 5.3 \n \n \n \n \n Tax on cash flow hedges \n \n \n - \n \n \n - \n \n \n - \n \n \n 6.5 \n \n \n (0.4) \n \n \n - \n \n \n - \n \n \n - \n \n \n 6.1 \n \n \n - \n \n \n 6.1 \n \n \n \n \n Other comprehensive income/(expense) \n \n \n - \n \n \n - \n \n \n - \n \n \n (17.3) \n \n \n 1.2 \n \n \n - \n \n \n (11.5) \n \n \n (314.4) \n \n \n (342.0) \n \n \n - \n \n \n (342.0) \n \n \n \n \n Total comprehensive income/(expense) \n \n \n - \n \n \n - \n \n \n - \n \n \n (17.3) \n \n \n 1.2 \n \n \n - \n \n \n (11.5) \n \n \n 116.8 \n \n \n 89.2 \n \n \n (6.0) \n \n \n 83.2 \n \n \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n \n \n \n   \n \n \n \n \n \n \n \n Cash flow hedges recognised in inventories \n \n \n - \n \n \n - \n \n \n - \n \n \n 54.4 \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n 54.4 \n \n \n - \n \n \n 54.4 \n \n \n \n \n Tax on cash flow hedges recognised in inventories \n \n \n - \n \n \n - \n \n \n - \n \n \n (13.6) \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n (13.6) \n \n \n - \n \n \n (13.6) \n \n \n \n \n Transactions with owners: \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n \n \n \n   \n \n \n \n \n \n \n \n Dividends \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n (19.6) \n \n \n (19.6) \n \n \n - \n \n \n (19.6) \n \n \n \n \n Transactions with non-controlling shareholders \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n 0.5 \n \n \n 0.5 \n \n \n \n \n Shares issued in respect of employee share options \n \n \n 0.7 \n \n \n 56.3 \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n 57.0 \n \n \n - \n \n \n 57.0 \n \n \n \n \n Purchase of shares held by employee trusts \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n (83.1) \n \n \n (83.1) \n \n \n - \n \n \n (83.1) \n \n \n \n \n Credit for share-based payments \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n 48.3 \n \n \n 48.3 \n \n \n - \n \n \n 48.3 \n \n \n \n \n Tax on share schemes \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n 22.2 \n \n \n 22.2 \n \n \n - \n \n \n 22.2 \n \n \n \n \n As at 30 March 2024 \n \n \n 20.5 \n \n \n 967.0 \n \n \n 2,680.4 \n \n \n (8.4) \n \n \n 5.4 \n \n \n (6,542.2) \n \n \n (81.1) \n \n \n 5,789.6 \n \n \n 2,831.2 \n \n \n (1.1) \n \n \n 2,830.1 \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n 1 The 'Other reserve' was originally created as part of the capital restructuring that took place in 2002. It represents the difference between the nominal value of the shares issued prior to the capital reduction by the Company (being the carrying value of the investment in Marks and Spencer plc) and the share capital, share premium and capital redemption reserve of Marks and Spencer plc at the date of the transaction. \n 2  See Note 1 for details of restatement. \n   \n   \n \n \n \n \n Condensed consolidated statement of cash flows \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n 26 weeks ended \n \n \n 52 weeks ended \n \n \n \n \n \n \n \n \n \n \n 28 Sep 2024 \n \n \n 30 Sep 2023 \n \n \n 30 Mar 2024 \n \n \n \n \n \n \n \n \n \n \n (Unaudited) \n \n \n (Unaudited) \n \n \n (Audited) \n \n \n \n \n   \n \n \n Notes \n \n \n £m \n \n \n £m \n \n \n £m \n \n \n \n \n Cash flows from operating activities \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Cash generated from operations \n \n \n 13 \n \n \n 479.2 \n \n \n 556.0 \n \n \n 1,492.9 \n \n \n \n \n Income tax paid \n \n \n \n \n \n (83.4) \n \n \n (73.8) \n \n \n (191.2) \n \n \n \n \n Net cash inflow from operating activities \n \n \n   \n \n \n 395.8 \n \n \n 482.2 \n \n \n 1,301.7 \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Cash flows from investing activities \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Proceeds on property disposals \n \n \...

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