The week ahead

Jul 5 2008 By The Journal

Marks & Spencer’s annual meeting will be the highlight of the corporate week, but the bad news from the housing sector is set to continue with updates from Barratt Developments and Persimmon.

Retail giant Marks & Spencer’s annual meeting on Wednesday is likely to be an uncomfortable affair for chief executive Sir Stuart Rose.

A shock profits warning this week after the group’s worst like-for-like sales performance in three years during the 13 weeks to June 28 dealt another blow to the M&S share price, which is just a third of levels seen a year ago.

The bleak high street conditions are set to continue well into 2009, offering little immediate respite for investors and analysts have rushed to downgrade forecasts.

But the abrupt departure of Steven Esom from the helm of the food business may prompt questions over the direction of the division, which has been weakened by supermarket competition and shoppers trading down amid soaring inflation.

Shareholders at the meeting in London’s Royal Festival Hall may also voice concerns over Sir Stuart’s appointment as executive chairman - in breach of corporate best practice - following the retirement of Lord Burns.

Sir Stuart, who has agreed to stay with the group until 2011, has attempted to soothe concerns among institutional investors by submitting himself to a yearly re-election.

However, pension fund adviser PIRC said this week: ``Wednesday’s surprise profit warning will only further fuel investors’ worries over the company’s strategic direction and governance."

Online and in the Evening Gazette next week:

Find out about the Hartlepool glass firm which is scoring an ace at Wimbledon.

Is it in the genes?  We uncover the trials and tribulations of running a family business.

Finally, we investigate the changing face of business banking.

Online and in The Journal next week:

Meet Daniel Goldman - the entrepreneur set to follow in his Sage-founding father's footsteps.

We talk to two plucky novocastrians looking to take on the pub giants and win.

Office space: Find out who's buying what in Wednesday's commercial property supplement. 

On Thursday read all the latest news and analysis from the North East technology sector in our weekly nedigital business supplement.

For breaking business news throughout the week log on to nebusiness.co.uk.