Profits surge as M&S lures back shoppers

Marks & Spencer posted a surge in half-year profits today as the revitalised high street giant continued to lure in shoppers.

Strong performances from the clothing, food and home offerings meant turnover from continuing operations jumped 8 per cent to £3.69 million.

That boosted profits, and on an operating basis they surged 41 per cent to £305.8 million in the 26 weeks to September 28.

Chairman Luc Vandevelde, who oversaw the group's turnaround after years of falling sales and profits, said: "I am pleased with the performance over the half year, which shows we are continuing to deliver on our promises."

He added: "We are now in a position where we have achieved four consecutive quarters of positive growth.

"That has translated into good half year results, which is a further indication that we have moved from securing to sustaining the recovery."

Mr Vandevelde said the group had therefore decided to increase the interim dividend payable to investors by 8 per cent, to 4p per share.

Mr Vandevelde has shaken up the retailer over the last year, selling or closing non-core interests, overhauling stores and introducing new ranges.

Earlier this year he relinquished the chief executive's role, which was taken over by Roger Holmes.

Mr Holmes said: "The improvements we have made to date in clothing, food, home and in our stores have been appreciated by our customers and are reflected in our performance.

"We are now delivering gains in market share across all three areas."