Marks and Spencer hires finance, strategy, and transformation veteran Alison Dolan as Chief Financial Officer

M&S reports that Alison Dolan will join its board as Chief Financial Officer.

She will take over from interim CFO Jeremy Townsend who will remain in post as planned until May 2025. Her exact start date will be announced in due course.

Stuart Machin, Chief Executive Officer, comments: “I am delighted to welcome Alison to M&S as our Chief Financial Officer.”

“We are fortunate to attract somebody of Alison’s calibre who will be a fantastic addition to the leadership team and with so much experience in fast paced, digitally led businesses, will help us in this next phase of transforming M&S.”

“I want to thank Jeremy for all his hard work and support. He will leave M&S in the strongest financial health the business has been in for decades. But Jeremy’s not going anywhere quite yet and will, as was always the plan, remain with us until May 2025.”

Dolan’s current job is CFO at digital property portal, Rightmove, and she has also held finance, strategy, and transformation roles, including with News UK and Sky.

She says: “I’m delighted to be joining M&S, Stuart, and the leadership team at such an exciting time for the business.”

“As a customer shopping at M&S I’ve always loved the brand and am thrilled to be part of reshaping the business for growth. The scale and pace of change are significant and there are so many great opportunities ahead.”

Reasons to be cheerful

M&S last week reported full-year revenue of £13 billion, up 9.3%, with operating profit up 33.8% to £839 million.

Guy Lawson-Johns, Equity Analyst, Hargreaves Lansdown, said: “M&S has given shareholders plenty to be happy about this year, growing market share and margins while implementing a significant cost cutting programme.”

“The group has achieved £180 million in cost savings this year and identified an additional £100 million in potential cuts, surpassing its previous five-year guidance.”

In the last quarter, M&S emerged as Britain’s fastest growing grocer alongside Lidl and the retail arm of Ocado, in which it holds a 50% stake.

Investing to create the perception of value through the Remarksable line has helped keep its appeal and allowed sales growth amid cost-of-living pressures.

That’s meant despite the challenging retail environment, marked by wage inflation and business rates, M&S exceeded analyst expectations with full-year revenue growth of 9.3%, and operating profit growth of 33.8%.

Despite promising in-house progress, there are concerns regarding Ocado, however. Losses from M&S's share in Ocado Retail have widened, and its public spat has drawn media attention, suggesting potential strain in the partnership.

Lawson-Johns concluded: “Operational and strategic improvements mean the business is healthier than it has been in some time. Enhanced cash generation and a robust balance sheet have enabled a continued reduction in net debt.”

“This financial stability has allowed M&S to restore its full-year dividend to 3p per share. While the prospective yield of 2.3% may seem modest, the anticipated increase in dividends could appeal to income-focused investors.”