M&S profits dented by higher costs

The high street bellwether reported a surplus of £315.2m for the six months to October 1, a drop of eight per cent on a year earlier and the company’s first reduction in profits for two years.

Chief executive Marc Bolland said the company had taken “decisive action” by offering promotions and better value to shoppers at a time when households finances were being squeezed.

The strategy came despite the company facing higher commodity costs, particularly in clothing.

Mr Bolland added that he remained cautious about the outlook but said the chain was “well set up” for the Christmas period.