FTSE 250

No dividends for Marks & Spencers shareholders

Marks & Spencer reported a bounce in profits as its outgoing CEO Steve Rowe stated that the business has “significant future development potential.”

Despite improving annual performance, M&S (LON: MKS) shareholders will not receive a dividend for the second year in a row.

The firm is concentrating on regaining profitability and strengthening its balance sheet, but it announced this week that it would explore the size and timing of a dividend resumption at the end of this fiscal year.

It will do so against a deteriorating economic environment, with no benefit from business rates reduction or any contribution from its closed Russia unit in this year’s profits.

Marks & Spencer said these factors mean it starts 2022/23 from a lower adjusted profit base.

It said: “The business is now much better positioned and had an encouraging start to the year. However, given the increasing cost pressures and consumer uncertainty, we do not currently expect to progress from this lower profit base in 2022/23.”

M&S shares were 0.7p lower at 131.58p, which compares with 257p in January.

Not Investment Advice Note: Views expressed are those of the writer. The author does not own any stocks mentioned. The article is information, not advice. Share prices can rise and fall. Past returns are not a guide to the future. Please do your own research.