M and S 'saddened' by leaks
Marks & Spencer says it is 'unfortunate and sad' that internal figures were leaked suggesting its problems are more serious than first thought.
A report, leaked to the media over the weekend, showed the firm's pre-tax profits for the financial year 2000-2001 could climb to just £430 million, compared with the £418 million reported for the previous year.
This could lead to a raft of downgrades from City stockbrokers on Monday as many in the City had expected a figure at least £20 million higher.
The leaked report also indicated that sales of ladieswear had slumped despite a series of price cuts, and that the retailer lost £109 million in its annual winter sale.
It also showed a fall in UK operating profit and suggested that M&S's overseas stores, which it has now decided to close, were performing much better.
A spokesman for M&S said the figures covered trading over the first nine months of the retailer's financial year, to December and that they were already in the public domain "in some way, shape or form".
He added: "We have not made any secret about the performance of our business, which supports the need for the radical restructuring we announced last month."
Only 30 people are likely to have seen the report, including divisional directors and senior employees within the finance department as well as the retailer's 13 board members.
The spokesman said: "In any time of uncertainty, there will be some employees not willing to accept the necessary change. It is unfortunate and sad, however, that anyone would leak information in an attempt to harm the business and the other 55,000 employees of M&S."
The retailer has also been sent reeling by a stinging reaction to its decision to close its 38 stores in mainland Europe, a move which would lead to 3,350 job cuts.
