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.