India offsets M&S' strong growth

S Kalyana Ramanathan / London November 05

Marks & Spencers, the British retail group, today said a strong 21 per cent growth in operating profits in its international operations were offset by tough market conditions and start-up losses in its India and China business.

The retail group today reported an international operating profit before property disposals at £65.9 million. In its first-half financial results for 2009-10, reported today, the group said it was, however, on track to open 10 stores with Reliance Retail over the next two years, spread over 200,000 sq ft. Two retail outlets were opened during the first half of this financial year, it said. On March 31, Marks and Spencer Reliance India Pvt Limited, a 51 per cent subsidiary of the group, completed the acquisition of 100 per cent of the issued share capital of Supreme Tradelinks Pvt Ltd, which up until that date was the group’s franchisee in India, for cash consideration of £6.1 million and transaction costs of £0.8m, it said. The acquisition contributed £2.9 million to sales and a £1 million loss to operating profit in the period since acquisition.