M&S Finance Boss Is Next To Leave Retailer

One of Marks & Spencer (Other OTC: MAKSF - news) 's (M&S) most senior finance executives is to leave the company as it continues its effort to revive stuttering clothing sales.

Sky News understands that Hamish Platt, who has been with M&S for more than eight years, will step down next year as director of group financial control.

Reporting to Helen Weir, the retailer's chief financial officer, Mr Platt is understood to have resigned in recent days.

The news of his departure follows a broad shake-up of senior executives in M&S's general merchandise division, which included the decision of the unit's head, John Dixon, to leave for a senior role in Australian retailing.

M&S pleased the City this week with news of a 6.1% rise in underlying half-year pre-tax profit to £284m and an upward revision to gross margin expectations for the full year in its key clothing business.

However, statutory profit over the period fell more than 20% because of costs associated with closing underperforming stores and exiting troubled markets in the Balkans.

Like-for-like clothing sales also fell , prompting analysts to question the progress of chief executive Marc Bolland's efforts to improve the division's performance.

"We delivered good underlying profit growth in the first half and made strong progress against our key priorities.

"Our food business again outperformed the market by over 3% points as our focus on quality and innovation continues to set us apart," Mr Bolland said.

"In general merchandise we decided to improve profitability by focusing on gross margin, delivering another significant increase, which in part resulted in slightly lower sales.

"As a consequence of good performance and strong cash generation we have decided to increase our dividend."

M&S declined to comment on Mr Platt's departure.