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Marks & Spencer today reported a 55% slide in half-year adjusted profit to £184.1 million, driven lower by the impact of the cyber attack earlier this year. Chief executive Stuart Machin said: “The first half of this year was an extraordinary moment in time for M&S. “However, the underlying strength of our business and robust financial foundations gave us the resilience to face into the challenge and deal with it. We are now getting back on track.” Machin said profit in the second half of the year is expected to be at least in line with last year. He added: “This should give us a springboard into the new financial year and set M&S up for further growth.” Statutory pre-tax profits collapsed by more than 99% from £391.4 million to just £3.4 million in the six months to 27 September. M&S said food sales were up by 7.8%, or 2.8% in volume terms, but that operating profit fell by almost 60% at £58.8 million. It said the decline was “largely due to higher markdown, waste and stock loss caused by temporary manual stock allocation. With systems now restored, these have reduced, and operational metrics have improved.“ The fashion and home side of the business suffered an even bigger fall in profits. They fell by more than 80% from £243.4 million to £46.1 million. Sales were down 16.4% to just under £1.7 billion.
