Marks & Spencer disappoint investors, says The Share Centre

The Share Centre currently list Marks and Spencer as a ‘hold' but suggests investors take advantage of any increase in share price.

Marks & Spencer announce figures in line with expectations, Nick Raynor investment adviser at The Share Centre, explains why this may disappoint investors.

"Results released this morning by British high street name Marks & Spencer, were in line with expectations and therefore somewhat disappointing for investors.

"Despite announcing an increase in clothing market share by 50 percentage points to 11.7%, and underlying pre-tax profits of £714.3m, early morning trading saw the share price fall by 1.3%. Many were hopeful of more from the retailer - especially after positive figures from Next earlier this month.

"The rise in the final dividend to 10.8p was better than expected and may be of interest to income seekers. The full year dividend stood at 17p - a 13.3% increase from the previous year.

"Consumers remain under pressure, and with a rise in interest rates looming, Marks & Spencer could suffer in these tough trading conditions. Spending is likely to fall and it will be the high-end stores like Marks & Spencer that we expect to suffer the most.

"We currently view Marks & Spencer as a weak ‘hold' and remain cautious of the retail sector as a whole. In these uncertain times for the British high street, we recommend investors should see any increase in the share price as an opportunity to sell."

For more information, visit share.co.uk.