M&S on the verge of return to FTSE 100

Lots to do: Boss Stuart Machin

The boss of Marks & Spencer says ‘it will be just another day’ if the High Street retailer is promoted back into the elite FTSE 100 index as expected next month.

Speaking exclusively to The Mail on Sunday, Stuart Machin said the company still has ‘lots to do’.

He has led a remarkable turnaround at M&S, which has seen its share price soar by nearly 80 per cent so far this year.

It is now valued at £4.3 billion, putting the company on the cusp of rejoining the blue chip index after a four-year absence.

Machin said it would ‘of course be good news’ if M&S was back in the Footsie, as it was when the index was founded in 1984. It would be a milestone on the road to recovery after the ignominy of tumbling out of the top shares club in 2019.

But he added: ‘To be frank, it would be just another day.

‘We’re only as good as our customers shopping with us say we are on any given day.

‘If we do right by our customers, we’ll do right by our shareholders.’

Machin will spend the bank holiday visiting stores, as he does every weekend. He said: ‘Although we’ve made progress, we’ve got lots to do and my mantra is to be positively dissatisfied – always seeking to raise the bar.

‘As a team we are very ambitious for the future of M&S and our focus is on reshaping the business for future growth.

Machin added that ‘performance was on track’. In an unscheduled update earlier this month, M&S raised its profit forecast for the year after seeing an 11 per cent leap in food sales and 6 per cent increase at its clothing and home division. That triggered a flurry of upgrades from City analysts, who declared that M&S had got its mojo back.

The revival has been most dramatic in clothing, which has been revamped by a ‘style squad’ who have spent three years overhauling every aspect of the M&S range.

Others in line for promotion to the FTSE 100 are veterinary supplier Dechra Pharmaceuticals, distribution group Diploma and Hikma Pharmaceuticals, while asset manager Abrdn, chemicals group Johnson Matthey and electronics distributor RS are set for demotion alongside housebuilder Persimmon.

FTSE Russell, which compiles the index, said a final decision will be made based on the company values at the close of trading the day after tomorrow. The changes will take place on September 18.

The 139-year-old retailer was demoted to the FTSE 250 in 2019 amid online competition and stalling growth from its groceries business.

Machin has just completed his first year as chief executive.

Apart from focusing on the quality and value of clothing and food, he has overseen heavy investment in technology and e-commerce while shutting dozens of larger stores and refurbishing others.

Despite the promising start Machin is not resting on his laurels. He recently said: ‘I don’t think we will ever declare victory, definitely not under my leadership.

‘There are always more challenges. We can go from zero to hero and back again very quickly. I want sustainable growth.’

This post first appeared on Dailymail.co.uk