MARKS & SPENCER’s profits more than halved after a cyber-attack forced it to halt website orders — causing £324million in lost sales.
The high street stalwart’s online home and fashion business was stopped for around six weeks after hackers targeted the business at Easter.
Shelves were empty after logistics systems crashed, while fashion sales dropped by 16.4 per cent and online sales by 42.9 per cent.
Underlying pre-tax profits fell 55.4 per cent to £184.1million in the six months to September 27.
On a reported basis, profits plunged to £3.4million from £391.9million a year ago.
The hit to profits overall is put at around £136million — although £100million in losses were recovered through insurance in the first half.
Boss Stuart Machin said: “The first half of this year was an extraordinary moment in time for M&S.
“However, the underlying strength of our business and robust financial foundations gave us the resilience to face into the challenge.”
He added: “We are now getting back on track.”
He expects second-half profits to be at least in line with last year as M&S accelerates cost cutting to £600million — despite an extra £50million in liabilities from April’s national insurance rise.
Mr Machin added that online sales were improving and said M&S expects trading to be fully recovered by the year’s end.
BANKS’ BRAKE
THE City watchdog has delayed its plans to compensate motor finance victims — after the big banks vowed to fight the scheme.
Lloyds Bank and Santander are arguing the payouts will be too generous.
The Financial Conduct Authority has now moved a consultation deadline from November 18 to December 12.
As drafted, 14.2million motorists could receive about £700 each, at a total cost of some £11billion to the industry.
PENSION FEAR
MPs have been told scrapping or curbing salary sacrifice for pension contributions would cut take-home pay for millions.
The Society of Pension Professionals has warned the Government may seek savings by reforming the scheme.
Salary sacrifice swaps part of pay for employer pension contributions.
The SSP’s Steve Hitchiner said: “The greatest impact would be on those earning under £50,284.”
BOSS BONUSES BLOCKED
THAMES WATER is among six water firms to have executive bonuses blocked after serious pollution and other failures, regulator Ofwat has announced.
More than £4million of potential awards has been stopped under new performance-pay rules introduced in June.
They kick in after pollution incidents, poor environmental practice or criminal convictions.
Anglian, Southern, United Utilities, Wessex and Yorkshire Water have also seen blocked payouts, mostly over pollution
