M&S says annual profits tumble on restructuring

British clothing-to-food retailer Marks & Spencer reported a collapse in annual net profits today, hit by a costly restructuring.

Bottom-line net profit tumbled almost 80 per cent to 24.7 million pounds in the group's financial year to March 31, M&S said in a statement.

That compared with profit after taxation of 117.1 million pounds a year earlier.

Pre-tax profit meanwhile dived more than 62 per cent to 67 million pound, while total sales firmed 0.7 per cent to 10.7 billion pound.

The performance was dented by 321.1 million pounds in costs linked to the retailer's ongoing store closure programme in Britain.

"In November I outlined the need for accelerated change at M&S," said chief executive Steve Rowe.

"The first phase of our transformation plan ... is now well under way and the actions taken have increased the velocity of change running through our business.

"These changes come with short-term costs which are reflected in today's results."