More gloom on way from M&S

MARKS & Spencer seems set to hit the market with a gloomy trading update next Tuesday, as it publishes details of its £2.3bn tender offer to shareholders.

Chief executive Stuart Rose had been scheduled to update the City on second-quarter trading on 12 October. But with sales having continued their slide over the summer, he is now expected to release current trading figures next week.

'If they do issue a trading statement, it will be bad news,' said Philip Dorgan of Panmure, who added that he believes the turnaround at the group will take longer than expected.

M&S has been losing out to rivals such as Next Group, which delighted the market this week with a 30% surge in first-half profits. Department stores group John Lewis has also been enjoying buoyant sales, today reporting a 22% jump in half-year profits and shrugging off reports of difficult trading in August.

But M&S is having a far tougher time as it recovers from the distractions of billionaire Philip Green's £9.1bn bid assault. The tender offer, worth £1 a share, was promised to shareholders as part of Rose's campaign to retain their loyalty in the face of the Green approach.

Green, who owns Bhs and Arcadia, has made it clear he will be turning up the High Street heat on M&S this autumn.

Meanwhile, the Financial Services Authority has closed its investigation into dealings in M&S shares and related derivatives ahead of the bid. Rose has already been cleared of any wrongdoing.