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M&S profits have more than halved after it took a hit from a major cyber attack earlier this year. The retail giant reported its underlying pre-tax profits tumbled 55.4% to £184.1 million in the six months to September 27. On a reported basis, profits were almost wiped out, plunging to £3.4 million from £391.9 million a year ago. M&S said the cost of the attack is set to total around £136 million, including about another £34 million in the final six months of its financial year. But it was able to recover £100 million in its first half through an insurance payout for the hack, it said. The total impact is lower than than the £300 million cost estimate given by M&S in May. READ MORE Older drivers face new roadside test in England and could have licence revoked Stuart Machin, chief executive of M&S, 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.” He said the group also faced cost increases of more than £50 million from the national insurance hike in April over its first half, but that he expects profits to be “at least in line with last year” in the final six months of its financial year as it ramps up its cost-cutting target to £600 million. “The retail sector is facing significant headwinds… but there is much within our control and accelerating our cost-reduction programme will help to mitigate this,” he added. In May, Mr Machin said the attack, which was caused by “human error”, was expected to cost the company around £300 million, before insurance claims or cost reductions to offset the impact. It said online sales have been improving and the group expects overall trading to be fully recovered by the end of its financial year. “In fashion, home and beauty, the recovery curve has been slower than food, but we are making progress every day,” Mr Machin said.
