Marks & Spencer Group plc Ordinary 25p (MKS)
Search UK shares
Company overview
It was 1894 when Michael Marks met Tom Spencer and founded what is today a major UK retailer for clothes, food and home products. The group has over 895 stores in more than 40 territories around the world, over 600 domestic and 295 international. It is the largest clothing retailer in the United Kingdom, as well as being a niche player in the food sector focused on premium quality convenience foods. Marks and Spencer Group PLC is listed on the London Stock Exchange and is a constituent of the FTSE 100 Index.HL Comment (7 July 2010)
In a recent trading update (7th July 2010), bellwether retailer Marks & Spencer posted another consensus-beating performance, recording its third consecutive rise in quarterly sales.
Overall group sales were up 4.4 per cent. Excluding newly opened stores, its like-for-like sales in the UK were up 3.6 per cent, a slightly better than expected performance which was boosted by strong sales of clothing. While this rise was at the top end of analysts' forecasts, it was down from a 5.1 per cent rise in the previous quarter. Management comments were understandably cautious about the outlook for consumer confidence and spending and will continue to “manage the business accordingly”.
Negative Points:
- The recent budget and the actions proposed to reduce the national deficit, including the increase in VAT, may impact on consumer spending.
- Management are bracing themselves for an uncomfortable annual shareholder meeting when a number of investors are expected to register concern over remuneration packages offered to executives.
- In May, the group agreed a pension funding package worth £800 million in an attempt to reduce the scheme's £1.3 billion deficit. It will contribute £35 million a year for the next three years, rising to £60 million, on top of the regular contributions it already makes.
Positive Points:
- M&S Direct had a strong quarter with sales up 49 per cent and its "Shop Your Way" multi-channel ordering service is now in more than 400 stores.
- The 126 year old business benefits from a significant freehold property portfolio (circa £3 billion)
- In Food, the group have continued to outperform the market on a like for like basis. The retailer launched 570 new products including our Grill and summer dessert ranges.
Consensus
On balance, market consensus indicates a hold.
All yield figures are variable and not guaranteed.
What the Brokers Say
-
Strong
SellStrong
Buy -
Strong Buy: 5 Buy: 2 Neutral: 13 Sell: 2 Strong Sell: 4 Total: 26
This is not a recommendation, it represents the consensus view of a basket of brokers. If less than 5 brokers it may not be a valid consensus. HL might not concur and takes no responsibility.
View Report & Accounts
All report and accounts are provided by SharesLibrary.
By downloading either the annual or interim report you are confirming you are happy to receive content from SharesLibrary, which is not provided or issued by Hargreaves Lansdown.
Important dates
Future events
| Trading Announcement | 7-10-2010 |
Past events
| Final Dividend Payment Date | 16-07-2010 |
| AGM | 14-07-2010 |
| Final Ex-Dividend Date | 2-06-2010 |
| Final Results | 25-05-2010 |
| Trading Announcement | 8-04-2010 |
| Interim Dividend Payment Date | 8-01-2010 |
| Trading Announcement | 6-01-2010 |
| Interim Ex-Dividend Date | 11-11-2009 |
| Interim Results | 4-11-2009 |
| Trading Announcement | 30-09-2009 |
| Interim Results | 30-09-2009 |
| Final Dividend Payment Date | 10-07-2009 |
| AGM | 8-07-2009 |
| Quarterly Results | 1-07-2009 |
| Final Ex-Dividend Date | 27-05-2009 |
| Interim Results | 19-05-2009 |
| Final Results | 19-05-2009 |
| Trading Announcement | 31-03-2009 |
| Interim Dividend Payment Date | 9-01-2009 |
| Trading Announcement | 7-01-2009 |
| Interim Ex-Dividend Date | 12-11-2008 |
| Interim Results | 4-11-2008 |
| Trading Announcement | 2-10-2008 |
| Final Dividend Payment Date | 11-07-2008 |
| AGM | 7-07-2008 |
| Final Ex-Dividend Date | 28-05-2008 |
| Final Results | 20-05-2008 |
| Interim Dividend Payment Date | 11-01-2008 |
| Trading Announcement | 9-01-2008 |
Fundamental Data
| Year Ending | Revenue (m) | Profit Before Tax (m) | EPS (p) | P/E Ratio | PEG | EPS Growth (%) | Total Dividend | Dividend Yield |
|---|---|---|---|---|---|---|---|---|
| 03-04-2010 | 9,536.60 | 702.70 | 33.50 | 11.30 | 0.60 | 18.00 | 15.00 | 4.00 |
| 28-03-2009 | 9,062.10 | 706.20 | 32.30 | 9.50 | n/a | (36.00) | 17.80 | 6.70 |
| 29-03-2008 | 9,022.00 | 1,129.10 | 49.20 | 9.10 | 1.10 | 8.00 | 22.50 | 5.70 |
| 31-03-2007 | 8,588.10 | 936.70 | 39.10 | 16.70 | 0.60 | 29.00 | 18.30 | 2.70 |
| 01-04-2006 | 7,797.70 | 745.70 | 31.30 | 17.70 | 0.20 | 78.00 | 14.00 | 2.50 |
Latest MKS Director Deals
Director deals for this stock are not available at present.
Any Overview and Comment is provided by Hargreaves Lansdown. What the Brokers Say, Important Dates and Financials are supplied by Digital Look Ltd. Prices delayed by at least 15 minutes.