M&S Profits Double Amid 'Onslaught of Costs'

The food business saw a substantial 13.9 percent sales jump, with volume sales growing by 11.9 percent. Fashion, home, and beauty revenues also rose by 17.5 percent year on year.

The company absorbed around £35 million in costs over the past six months. These costs stemmed from increases in packaging taxes, pay, national insurance, and disruption in the Middle East. M&S bosses claim results from its fashion, home, and beauty business "fell short of their potential," even after bouncing back from a cyber attack that caused an online sales shutdown lasting about six weeks.

Stuart Machin, the M&S boss, claims government decisions over the past two years left the retailer facing an "onslaught of costs." He stated, "Despite the onslaught of cost headwinds, we have remained focused on our ambitions and we are clear on our plan."

Machin criticized the Chancellor's first Budget, unveiled last week with promises of support for households and high street firms. He claims the autumn Budget was a "whole lot of nothing" and will lead to tax hikes for the firm.

He further asserted that changes to business rates will pile an extra £10 million onto the retailer's bill. Machin remarked, "Even the headlines on business rates sounded positive, but it actually adds another £10 million to our business rates bill."

Machin described the current fiscal environment as one of the "biggest tax grabs in history." He added, "If you look at the last three budgets, I can't think of another time like it. It's one of the biggest tax grabs in history that I have seen."

The Ocado joint venture swung to a half-year profit of £25.6 million, recovering from a loss of £3.1 million a year prior. Machin concluded, "We enter the second half in a strong position, with a solid performance in October under our belts."