M&S dividends reduced as it posts falling profits

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M&S dividends reduced as it posts falling profits

Tue 19th May 2009

Marks and Spencer (M&S) dividends have been slashed by almost a third after the group posted disappointing profits this week, it has been revealed.

The British store has been forced into the move, which will see its dividend reduced to 15 pence, as it revealed that its annual profits were down by £400 million.

This move has prompted the Share Centre to urge shareholders to sell their interests in M&S as there are better investment opportunities available elsewhere in the retail sector.

Nick Raynor, investment adviser at the Share Centre, explained: "The decision to cut the annual dividend from 22.5 pence to 15 pence is a blow for M&S shareholders, who currently hold about a quarter of the retailer's shares."

He added that the company has been left with no choice but to do this and has "suffered" due to the recession, as consumers hunt cheap produce and clothing.

M&S recently announced that it will be selling many items, including women's underwear, jewellery sets, ties and socks for just one penny as it celebrates its 125th birthday.

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