Marks and Spencer announces 88% drop in profits

The half year profits for Marks & Spencer have tumbled by 88% to £25.1 million, for the period to the end of September, that included a "significant charge relating to pension changes"

Alongside the financial results has come the restructuring plan for the next 5 years, which involves exits from loss making international markets that will cost £150 - £200 million to do so. This involves the closure of 53 branches but will save in the region of £45 million yearly. The stores destined to go are in China (10) France (5) and total closures in Belgium, Estonia, Hungary, Lithuania, Holland, Poland, Romania and Slovakia.

Profits have been dragged down by lower Clothing and Home sales with 60 of these branches earmarked for closure within five years, though the Simply Food stores will expand.

This overall strategy is expected to return Marks & Spencer to "sustainable profitable growth"