LONDON (AFP) - The British high street retailer Marks and Spencer announced a major management shake-up as it unveiled its first half results and said trading has become tougher since its last update.
The group said it is slimming down its executive board to three from six, with the departure of a number of senior executives, including finance director Alison Reed.
The announcement accompanied news of a fall in underlying pretax profits to 292.7 million pound (420 million euros, 543 million dollars) in the first half to October 2 from 325 million a year earlier as sales in the group's core British retail operation fell 0.4 percent to 3.3 billion pounds.
The fall on a comparable basis was worse - down 4.0 percent.
"Trading has become more difficult since we last updated on current trading on 12 October," the group said in its results statement.
"However, we do not believe this trend to be entirely Marks and Spencer specific," it said. "With Christmas, we still have our two key profit driving months ahead. It is therefore too early for us to predict the outcome for the second half at this stage."
The group said Alison Reed is stepping down "by mutual agreement" but will stay on until February to hand over to her successor. The search for a new finance director is underway.
Among the other management changes, the group's executive director for the menswear, childrenswear and home division Maurice Helfgott is stepping down and leaving the company "by mutual agreement".
Mark McKeon, executive director for retail, international and franchises, will also be leaving the board with immediate effect and neither of these posts on the board will be replaced.
Laurel Powers-Freeling, chief executive of M and S Money, is also stepping down from the board with immediate effect as a result of the sale of the business to HSBC. The group said she will continue to oversee the transition and leave the company before the end of the financial year.
Other departures include human resources director Jean Tomlin and business unit director for the Home operations Jack Paterson.
"There can be little doubt as to the scale of the challenge which Stuart and his colleagues have inherited," said chairman Paul Myners.
"However, we have made good progress on laying the foundations for our recovery. The management changes announced today are evidence of our determination to accelerate the pace of change within the business."
"I am confident that the benefits of all the work that is being done will become increasingly apparent through the course of next year," he said.
Stuart Rose, Charles Wilson and the new finance director will be the three executive directors to sit on the reformed board and all buying and merchandising directors will now report directly to Rose; with IT, logistics and property reporting to Charles Wilson and finance, international and MetS Money reporting to the finance director.
The group's marketing operations will continue to report to Steven Sharp.
11/09/2004 - 12:38 GMT - AFP