The papers are predictably dominated by Marks & Spencer’s return to annual profit growth yesterday, with chief executive Mark Bolland’s position suddenly looking more secure.
A number of the papers lead on M&S’ pledge to give back £150m to investors via a share buyback scheme, though The Telegraph notes the payout fell short of expectations that it could hand as much as £250m back in share buybacks or special dividends. (The Telegraph)
But inevitably it’s the position of chief exec that is the subject of most interest, with The Daily Mail writing that the “strong results” will “relieve pressure” on Marc Bolland. (The Daily Mail)
Alistair Osborne in The Times says Bolland is “right to insist he’s going nowhere soon”. His job won’t be done until he can produce sustained general merchandise sales growth — particularly lacklustre last year, given the 13.5 per cent jump in marketing spend. (The Times £)
The Guardian agrees that “investors would be alarmed if he jumped ship now” as “the job is not complete”. It writes that two years ago Bolland was being asked whether he could cling on to his job, while yesterday the line of questioning is different: might he choose to depart on a high, declaring his work to be done? “Neither extreme view was, or is, an exact fit.” (The Guardian)
The FT writes Bolland himself refused to declare that his work was done in turning round M&S, quoting him as saying: “We know where we are going, and this is a step-by-step approach. We clearly took a step forward, and we took a step in the right direction.” (The Financial Times £)
M&S’ food sales were a key component of its better year, with the Times writing that M&S has now delivered 22 consecutive quarters of like-for-like growth in food and “appears to be winning customers from Waitrose at the upmarket end of grocery retailing”. (The Times £)
Executive director of food caused Steve Rowe remains a frontrunner to succeed Marc Bolland at M&S. The retailer’s executive director of food caused something of a stir last summer by throwing his hat into the ring as a contender to replace Bolland. He is more guarded this time around. (The Daily Mail)
The Telegraph’s Questor column says M&S shares are represent far better value than Tesco or Sainsbury’s as M&S is raising its dividend and increasing cash returns while FTSE 100 rivals are cutting theirs (The Telegraph)
Away from M&S, on the day the UK slipped into deflation, two of the country’s biggest food groups — Greencore and Premier Foods — said falling prices would not get in the way of their growth plans. (The Financial Times £).
Supermarkets are failing to clean up their act on late payments, taking more than a month longer than agreed terms to settle debts with suppliers. According to new research into late payments from Experian, the UK’s supermarkets fall far short of the national average, and lag the wider food retail sector. (The Telegraph)
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