LONDON (AP) — Food and clothing retailer Marks & Spencer said yesterday it was cutting dividend payments by a third after full-year profit fell 38 percent, as intense competition forced it to slash prices aggressively in its home British market.

For the year ending March 28, Marks & Spencer reported a net profit of £508 million ($783 million), down from £821.7 million in the previous year. Revenue rose 0.4 percent to £9.06 billion.

Struggling to stay Britain's leading clothing retailer against stiff competition and a recession, Marks & Spencer has already closed 26 stores and cut staff.

"Given an uncertain economic outlook and in order to provide a stronger foundation for moving forward, the board has taken the decision to rebase the group's dividend payment to 15p per share from the current level of 22.5p per share," the company said.