Rose hopes signs of an upturn will quell critics
HIGH-street chain Marks & Spencer's latest trading figures will be the highlight of this week along with updates from transport groups National Express and Sunderland’s Arriva.
M&S is the latest retail giant to report back on first-quarter trading when it provides figures on Wednesday after months fending off criticism over its sales performance and corporate governance amid anger over boss Sir Stuart Rose’s combined chief executive and chairman role.
M&S sales have suffered from the recession more than many of its rivals, which has added to investor discontent. Full-year profits tumbled 40% to £604.4m and it was also forced to cut its annual dividend by 33% – the first such move since 2000.
Like-for-like UK sales for the full year fell 5.9%, including a 6.9% drop in general merchandise and a 5% decline in food.
But the fourth quarter suggested a moderately better performance, with sales declines easing.
National Express and Arriva’s updates on trading are likely to throw another spotlight on trading in the struggling transport sector.
Under most pressure is debt-laden National Express – which reports on Wednesday – largely thanks to stalling revenues on the East Coast Main Line rail franchise, which it won two years ago before the recession struck.
The company is in discussion with the Department for Transport over amending the deal, under which it must pay the Government £1.4bn by 2014
There has been speculation National Express could walk away from the agreement – a desperate move triggering defaults on its other franchises.
