UK high street giant Marks and Spencer appoints retail technology veteran Paul Sims as Chief Architect

Paul Sims has joined Marks and Spencer as Chief Architect. He comes onboard from Primark, where he held the same role.

Sims’s CV also includes stints as Chief Technology Officer at Halfords, Head of Technology Planning at New Look, and Principal Architect at Sainsbury’s.

REASONS TO BE CHEERFUL

In May, M&S 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.”