Marks and Spencer Group PLC (LSE:MKS) restored the dividend for the first time in four years as it said its strategy to reshape the food and clothing retailer was delivering.
Pre-tax profits in the six months ending September jumped 56% to £325.6 million from £208.5 million, led by strong growth in food sales.
Sales rose 10.8% to £6.16 billion from £5.56 billion the year prior while basic EPS climbed 24.7% to 10.6p from 8.5p before.
M&S chief executive Stuart Machin said trading momentum has been “maintained” through October but warned of “challenges and headwinds in the year ahead”, saying progress won't be linear.
Against more challenging comparatives, the firm expects profit before tax and adjusting items to be weighted towards the first half.
Food sales rose 14.7% with like-for-like sales up 11.7%, driven by growth in volume and market share, and manufacturing efficiencies.
Clothing & Home sales rose 5.7% with adjusted operating profit rising to £223.4 million, up from £171.4 million, and a margin of 12.1%.
M&S said the cost-reduction programme remained on track with savings of over £100 million delivered in the first half and said new full line stores and renewals were performing ahead of plan.
A dividend of 1p per share was declared.