M& S shares charge to top of the board

Market report Scott Reid

Shares in Marks & Spencer strode ahead in the wake of its latest annual results and turnaround efforts – just as experts warned that the retail giant may drop out of the FTSE 100.

The high street stalwart reported a 62.1 per cent fall in pre- tax profit to £ 66.8 million as it was dragged down by £ 321.1m in costs linked to store closures.

The results come a day after M& S said it will shut more than 100 outlets by 2022 as it accelerates a transformation programme that will see thousands of jobs put at risk. Shares closed up 5.2 per cent at 306.9p.

D a v i d M a d d e n , m a r k e t a n a l y s t a t C M C Markets UK, said: “Shares in Marks & Spencer are higher as the headline profit figure topped analysts’ estimates.

“The retailer is continuing with its plans to obtain more sales online. [ Chief executive Ste - ve] Rowe has a good grasp about which way the entire retailer sector is heading, and that is why he is keen to close stores that are under p erforming, and t r y and f o cus more on t he e- commerce angle.”

Soft drinks giant Britvic saw its half- year profits tumble after it was stung by costs related to a factory closure in Norwich. The group saw pretax profit fall from £ 50.1m to £ 41.8m in the six months to 15 April.

However, revenues at the drinks firm fizzed up 4.5 per cent to £ 733m in the period as it was boosted by sales of Robinsons and Pepsi. Boss Simon Litherland said: “We have delivered a strong first- half performance.” Its shares added 7.5 per cent to 815.5p.

The FTSE 100 Index fell 89.01 points to 7,788.44. Profits may have headed south at the high street stalwart but investors seemed pleased at efforts to try to get the business back on track. The group is to tap investors for £ 69.8 million via a discounted share placing as the Cathedral City maker looks to expand cheese production.