Marks and Spencer Group PLC (LSE:MKS) has said it plans to restore its dividend as profits rose in the year 1 April 2023.
The retailer said the dividend was suspended at the start of the pandemic to protect its balance sheet, but improved performance has given the board the green light to issue a modest dividend in the current financial year.
Pre-tax profits in the year jumped 21% to £475mln, while revenues grew 9.9% to £11.9bn, the retailer said in a statement.
"One year in, our strategy to reshape M&S for growth has driven sustained trading momentum, with both businesses continuing to grow sales and market share,” said M&S chief executive Stuart Machin.
Part of the strategy involves its venture with Ocado, where it reported a £29.5mln share of loss, compared to a £13.9mln share of profit last. The retailer said Ocado’s reset is underway, which involves restoring service credentials and deepening its collaboration.
Also included in the reshaping of Ocado is the acceleration of its store rotation, with eight full-line and 10 food stores opening in 2024.
Looking ahead, the group expects to deliver modest revenue growth in the current financial year, despite significant headwinds, including high-cost inflation and challenging market conditions.
“Despite facing significant headwinds, I am encouraged by the strong foundations established last year and excited about what we can achieve in the year ahead,” Machin added.