(evening standard)
Marks & Spencer today reported a return to profitability as its outgoing boss Steve Rowe said the retailer has “the opportunity for significant future growth”.
Rowe, who is stepping down after six years as chief executive, said M&S had “gone beyond demonstrating its relevance” after confirming its recovery from last year’s pandemic-related loss with net income of £391.7m as of April 2 .
In other company results, renewable energy company SSE said its investments in UK and Irish infrastructure could top £25bn this decade as it faces the risk of a windfall tax.
No M&S dividend for shareholders, uncertain outlook
08:26, Graeme Evans
Despite M&S’ improved full year results today, there is no dividend paid to shareholders for the second year in a row.
The company is focused on restoring profitability and improving its balance sheet, but said today it will review the extent and timing of a resumption of dividend payments later this fiscal year.
It will do so against a tightening economic backdrop, while this year’s results will benefit neither from any relief in business interest rates nor from any contribution from its closed operations in Russia.
M&S said these factors mean 2022/23 is expecting a lower adjusted earnings base.
It states: “The company is now in a much better position and has had an encouraging start to the year. However, given the increasing cost pressure and consumer uncertainty, we currently do not expect to assume this lower earnings basis in 2022/23.”
Shares were 0.7p lower at 131.58p compared to 257p in January.
SSE shares rebound after the results
08:11, Graeme Evans
SSE shares opened 4% higher today after falling 8% yesterday on speculation that the Treasury’s deliberations on unexpected energy taxes include a potential £10bn target of excess profits in the power generation sector.
Full-year results for the Renewable Energy and Power Grids division today showed a pre-tax profit of £3.48 billion, up 44% from a year earlier. This figure reduces to £1.12 billion on an adjusted basis.
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The results underscore the company’s contribution to the UK’s low-carbon energy transition.
SSE pointed out that net investment in UK and Irish infrastructure could top £25bn this decade, adding that it contributed over £5.8bn to UK GDP last year and supported over 45,000 jobs.
CEO Alistair Phillips-Davies said: “SSE is strategically, operationally and financially well positioned to continue to create value for all our stakeholders and society at large as we create the infrastructure needed to achieve net zero, to secure the energy supply and ultimately to drive consumer prices down.”
Social media giants slide, FTSE 100 poised to rally
07:42, Graeme Evans
US markets suffered another bruise yesterday after Snapchat’s owner’s revised guidance sent social media company shares sharply lower.
Snap fell 43% by last night’s close, while fears of an advertising slowdown left Facebook owner Meta Platforms down nearly 8% and Elon Musk’s takeover target for Twitter down 5%.
The tech-heavy Nasdaq shed more than 2% of its value, but the performance of other US benchmarks was more resilient after the S&P 500 limited losses to under 1% and the Dow Jones Industrial Average moved into positive territory.
US futures markets are pointing to a later positive start as investors await minutes from the May Federal Reserve meeting later in the session. Interest rates were raised 0.5% in the biggest rise in two decades, but Wall Street will consider whether a steeper 0.75% hike is being considered.
Markets are currently pricing in two more rate hikes of 0.5% by September.
The FTSE 100 index also posted robust performance yesterday, falling 0.4% versus larger falls in Europe and a 1.5% drop for the UK-focused FTSE 250 index.
London’s top flight is expected to open 70 points higher at 7554, according to CMC Markets.
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