Marks And Spencer Share Discussion Threads

[johnwise] 21/7/2022 13:40

Survey suggests consumers will maintain spending through cost of living squeeze


Despite over half (59%) of UK adults making changes to their spending habits, many consumers expect to either maintain or increase spending on essential and non-essential items as the cost-of-living crisis rages on, according to the findings of the latest wave of Alfresco Life research by Out of Home agency Kinetic Worldwide.

[smurfy2001] 21/7/2022 11:52

Shame Ashley doesn't do more interviews he's fascinating to listen to. People can learn allot, just look at Musk.

[debsdowner] 21/7/2022 11:48

QANTAS, Although Mike Ashley made a mistake with DEBENHAMS he seems to have a good understanding of department stores in general albeit he doesn't retail food.

In the meantime UBS cuts Marks & Spencer to 'sell' (neutral) - price target 120 (250) pence.

[philanderer] 21/7/2022 11:02

UBS cuts Marks & Spencer to 'sell' (neutral) - price target 120 (250) pence

[philanderer] 21/7/2022 10:54

And we've lost our CFO


Eoin Tonge, who joined M&S as Chief Financial Officer just over two years ago, will be leaving M&S to take up a new role as Finance Director at ABF Plc. M&S is now commencing a process to appoint a successor and Eoin will continue to fulfil his current role in line with his notice period, which will include supporting the business through its Interim Results in November.

[philanderer] 21/7/2022 10:52

(Alliance News) - Marks & Spencer Group PLC on Thursday said it has bought Gist Ltd as part of its acceleration plan to transform its food supply chain.

The London-based food and clothing retailer has acquired Gist from Storeshield Ltd, a subsidiary BOC Group Ltd, which in turn is a part of Linde PLC.

M&S is buying Gist for an initial GBP145 million in cash and a further GBP85 million, plus interest, will be payable on the third anniversary of completion at the latest. Up to GBP25 million plus interest will also be payable "under certain conditions".

Gist is the principle contract logistics business to M&S Food. It offers customers primary logistics from supplier to depot, and secondary logistics services from depot to store. It generated pro-forma earnings before interest, tax, depreciation and amortisation of GBP55 million in 2021.

The acquisition is expected to be accretive in M&S's earnings per share in the next year and accelerate its "multi-year plan to modernise its food supply chain network to support growth," it said.

"The acquisition will generate immediate benefits to M&S through the elimination of contractual fees and costs and the implementation of aligned operational processes," M&S added.

[qantas] 21/7/2022 10:00

Frasers surged after lifting its full-year profit outlook despite a "challenging" backdrop. The company now expects adjusted pre-tax profit for the full year to be between £450m and £500m, up from previous guidance of £300m to £350m.

[debsdowner] 21/7/2022 09:17

Good move by MARKS which will improve profits:

RNS Number : 2825T

Marks and Spencer Group PLC

21 July 2022

Marks and Spencer to acquire Gist as part of accelerating its Food supply chain transformation

Marks and Spencer Group plc today announces the acquisition of Gist Limited ("Gist"), the principal contract logistics provider to M&S Food, from Storeshield Limited, a subsidiary of The BOC Group Limited. The acquisition is expected to be EPS accretive in the next year and accelerates M&S's multi-year plan to modernise its Food supply chain network to support growth.

M&S Food has restored an industry-leading position in volume growth over the past four years, developed bigger, better stores and entered new channels through the investment in Ocado Retail and through franchise partnerships, including over 2,500 Costa stores. However, there is a substantial opportunity to create a more efficient and effective supply chain through investment in the network to reduce the cost to serve, update legacy systems and improve automation.

Gist provides the majority of M&S Food logistics services via a network of 8 primary and 10 secondary distribution centres located across the UK and the Republic of Ireland, including a number of freehold warehouses. As previously highlighted the existing arrangement has a higher cost legacy contract which expires in 2027. The acquisition will generate immediate benefits to M&S through the elimination of contractual fees and costs and the implementation of aligned operational processes. Through acquiring Gist, M&S can also take control of and invest in the network, building on the successful implementation of the "Vangarde" supply chain optimisation programme.

Under the transaction, M&S is acquiring the entire share capital of Gist for an initial consideration of GBP145m in cash. A further amount of GBP85m plus interest will be payable in cash from the proceeds of the intended onward disposal of freehold properties or, at the latest, on the third anniversary of completion. An additional profit share from the disposal proceeds of up to GBP25m plus interest will be payable under certain conditions. M&S has the ability to retain the freehold properties should it wish to do so in which case the full amount of GBP110m plus interest will be payable.

The Gist business being acquired generated a proforma EBITDA of c.GBP55m in the year ended December 2021, with the majority of profit reflecting management fees recharged to M&S under contractual arrangements, which will be eliminated upon consolidation to M&S. The transaction is expected to be earnings enhancing in its first full year and will be funded through existing cash reserves.

Stuart Machin, Chief Executive, said : "M&S has been tied to a higher cost legacy contract, limiting both our incentive to invest and our growth. The last two years have shown what can be achieved by working collaboratively alongside our partners at Gist. This has given me confidence that now is the time to take action and remove an impediment to our growth. We have therefore acted decisively to acquire Gist, taking control of our Food supply chain for the first time in our history. This is the first step in a multi-year plan which will transform the entire supply chain."

About Gist

Gist is a time-sensitive, temperature-controlled contract logistics business, offering customers primary logistics (from supplier to depot) and secondary logistics services (from depot to store). It has worked with M&S as its principal customer for decades and provides the majority of M&S Food logistics services under a long-term contract via a network of 8 primary and 10 secondary distribution centres located across the UK and the Republic of Ireland, including a number of freehold warehouses. It also provides a limited number of logistics services for third parties as well as freight forwarding for BOC. Gist's food service division will remain with BOC post completion with appropriate transitional service agreements in place to ensure business continuity.

Gist has an overall employee base of approximately 5,800, led by an experienced management team, including CEO Michael Chambers who will continue to lead the business and report to the Commercial Director of M&S Food.

Additional information

The acquisition of Gist constitutes a Class 2 transaction for M&S under the UK Financial Conduct Authority's Listing Rules. For the purposes of LR 10.4.1 R, the Gist business being acquired had gross assets of approximately GBP305.7m as at 31 December 2021 (this number includes GBP51.4m of cash that is not being acquired by M&S as part of the transaction) and generated a proforma EBITDA of c.GBP55m for the year ended 31 December 2021.

Completion of the proposed acquisition is conditional on the separation of certain businesses from Gist which do not form part of the target business and certain merger control approvals and is expected to take place in H2 of calendar year 2022.

[debsdowner] 21/7/2022 09:13

MARKS loses it's CFO to PRIMARK



Bit of a blow as it takes time for a new CFO to get a hang of the business.

[debsdowner] 21/7/2022 08:15

Just scanned the results and outlook statement more important as most retailers bounced back after store openings after lockdown.

Operating margin circa double that of MARKS, even Oulook statement on profits looks good:

Outlook


"Under Michael Murray's direction and leadership, we are confident the Group is well positioned for a successful year ahead.

Relationships with our key brand partners are better than they have ever been, and we will continue to invest into supporting and growing these relationships.



The business cannot overlook the many significant economic factors which are headwinds on the business, including challenges with supply chain and the increased cost of living - these factors could have an impact on business potential.



However, we look forward to growing the business both organically and through acquisitions to ensure we remain a market leader globally. We believe the growth factors will mitigate these headwinds and we will be looking to grow our Adjusted PBT to between £450m and £500m in FY23."

[netcurtains] 21/7/2022 07:32

Huge growth at Frasers

[debsdowner] 20/7/2022 15:12

MARKS increases it's third brand partenrship with "Benefit" cosmetics which will mean it will mean they are available online later this year and a limited number of stores making thwm available



The company is clearly evolving at a rapid pace of change lets hope they gain sales rather than lose momentum from MARKS own merchandise.

[debsdowner] 20/7/2022 12:53

MORRISONS looks like it will lose its fourth biggest supermarket spot to ALDI sooner than many think as sales shrink fast at MORRISONS



Previoulsy KANTAR had thought it would take another year for MORRISONS to lose the 4th spot but it could come this year if sales keep slipping at MORRISONS.

Private equity in the US must be regreting the buy-out of MORRISONS they could ebd up with a loss making supermarkeet.


UK grocery market share KANTAR

[debsdowner] 19/7/2022 21:14

LIDL & ALDI gain further grocery market share MORRISONS slips badly

[philanderer] 19/7/2022 14:17

Marks & Spencer launches beauty partnership with Benefit Cosmetics

[blackhorse23] 19/7/2022 13:30

MCB (LSE) looks attractive, revenue 700 millions, growth 3 percentage with strong H2 , BOD heavy buying 150 percentage above current share price .. bounce back time coming

[xxxxxy] 19/7/2022 12:14

Fashion brand Joules said its profitability is ahead of targets after it made "good progress" with cost-cutting efforts.Shares in the retailer bounced higher in early trading after investors welcomed news that adjusted pre-tax profits for the past year to May 29 were "slightly ahead of current market expectations".Nevertheless, it comes after two profit warnings earlier this year and means its shares are still more than 80% down since the start of 2022.... Yahoo Finance

[pierre oreilly] 19/7/2022 11:18

I think debbie frowner has a secret desire to be a news reader.

'And here is the latest biased selected news, read by debbie'

[tradejunkie2] 19/7/2022 11:06

Hello, Is Debby doing Dallas? 😆😂

[xxxxxy] 19/7/2022 00:56

Maggie Calder1 DAY AGOMessage ActionsWhere can you buy the clothes?Paula Thomas11 HRS AGOReply to Maggie Calder - view messageMessage ActionsThey have their own website or M&S and John Lewis sell a selection online, not sure if the brand is sold in high street stores.... Daily Telegraph

[darrin1471] 18/7/2022 20:51

Other Marshall Wace shorts where they hold more than 0.5%

WPP PLC 0.84% 0.05% 5 Jul 2022
CERES POWER HOLDINGS PLC 0.80% 0.01% 31 May 2022
INTL CONSOLIDATED AIRLINE-DI 0.80% 0.09% 11 Jul 2022
HOWDEN JOINERY GROUP PLC 0.79% -0.01% 5 Jul 2022
Saga plc 0.79% -0.01% 6 Jun 2022
TRAVIS PERKINS PLC 0.79% -0.01% 15 Jul 2022
HARGREAVES LANSDOWN PLC 0.71% 0.02% 12 Jul 2022
NEXT PLC 0.70% 0.01% 13 Jul 2022
THG Holdings plc 0.69% -0.10% 14 Jul 2022
Royal Mail Plc 0.67% -0.11% 24 Jun 2022
BERKELEY GROUP HOLDINGS 0.60% 0.10% 6 Jul 2022
INVESTEC PLC 0.60% 0.01% 23 Jun 2022
TESCO PLC 0.60% 0.01% 15 Jul 2022
BUNZL PLC 0.59% -0.09% 6 Jul 2022
Deliveroo Holdings Plc 0.59% -0.01% 18 Mar 2022
YELLOW CAKE PLC 0.59% -0.01% 13 Jul 2022
CRODA INTERNATIONAL PLC 0.58% -0.04% 6 Jul 2022
MAJESTIC WINE PLC 0.58% -0.11% 19 Apr 2022
AO WORLD PLC ORD 0.50% -0.18% 11 Jul 2022
BARRATT DEVELOPMENTS PLC 0.50% 0.06% 22 Jun 2022
FORTERRA PLC 0.50% 0.0% 12 Jul 2022
FRESNILLO PLC 0.50% 0.01% 12 Jul 2022
J.D. WETHERSPOON PLC 0.50% 0.01% 31 May 2022
ROYAL BANK OF SCOTLAND GROUP 0.50% 0.02%

[darrin1471] 18/7/2022 20:49

Marshall Wace top 10 shorts by % of stock

ASOS PLC 3.00%
KINGFISHER PLC 2.00%
BURBERRY GROUP PLC 1.80%
PENNON GROUP PLC 1.49%
MELROSE INDUSTRIES PLC 1.41%
BOOHOO.COM PLC 1.19%
GVC Holdings Plc 1.09%
DIXONS CARPHONE PLC 1.07%
TAYLOR WIMPEY PLC 1.01%
B&M EUROPEAN VALUE RETAIL S.A. 0.91%

[debsdowner] 18/7/2022 17:52

The heatwave decimates the High Street footfall London down over 10.2% all destinations



No trains in London tomorrow weather expected to be hotter tomorrow in the South East,

but the north, north west will see a cooling of temperatures from tomorrow night.

[freedom97] 18/7/2022 13:01

When you buy from the markets they have never have/had best before dates. It's very easy to see if fruit and veg is old and even if it is it will do you no harm it just means vitamins and minerals might not be as good so you benefit less from eating fruit and veg that's not freshly picked.

Only food that requires 'Use by dates' are foods that can be dangerous to health if eaten beyond the date.

Remember BBE dates never existed 20 odd years ago.

I think M&S fruit and veg will be as fresh as you can get in supermarkets more so than any other supermarket.