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| Marks and Spencer reports rise in profits | Marks and Spencer reports rise in profits |
| (about 1 hour later) | |
| High Street retail giant Marks and Spencer has reported a rise in full-year profits, saying it made "good progress" during the year. | High Street retail giant Marks and Spencer has reported a rise in full-year profits, saying it made "good progress" during the year. |
| M&S said underlying profit before tax rose 6.1% to £661.2m for the year to 28 March. | M&S said underlying profit before tax rose 6.1% to £661.2m for the year to 28 March. |
| Its food business had an "outstanding year", the company said, but sales of general merchandise - which includes clothing - were below expectations. | Its food business had an "outstanding year", the company said, but sales of general merchandise - which includes clothing - were below expectations. |
| However, sales of womenswear rose in the final quarter. | However, sales of womenswear rose in the final quarter. |
| Chief executive Marc Bolland told the BBC's Today Programme that the improved results came despite the most difficult retail market in 15 years. | Chief executive Marc Bolland told the BBC's Today Programme that the improved results came despite the most difficult retail market in 15 years. |
| He also said that the company was confident in the strength of its clothing. | He also said that the company was confident in the strength of its clothing. |
| "We've never had more design capability," Mr Bolland said. | "We've never had more design capability," Mr Bolland said. |
| M&S also raised its dividend by 5.9% and announced a £150m share buyback programme. | |
| Analysis: Kamal Ahmed, BBC business editor | |
| Profits are up at Marks and Spencer - but at a cost. | |
| Capital expenditure on modernising shops and an online revamp has fallen to £526m for the year compared to £710m last year. But it still totals over £3bn in the last five years. | |
| Compare that to £700m at Next over the same period. | |
| M&S investors will be pleased that gross margins are improving, meaning that M&S is resorting to fewer money-off promotions to drive sales. Dividends are also up. | |
| But there are still major question marks over the vital womenswear department. Yes, the final quarter of the year saw sales up, but online problems over Christmas and the third warmest autumn on record all weighed heavily on sales over the year, which were down. | |
| The chief executive, Marc Bolland, knows that he has to show consistent growth in womenswear before he can pronounce "job done". | |
| Analysts broadly welcomed the news. | |
| Richard Hunter, head of equities at Hargreaves Lansdown Stockbrokers, said: "The increase in the dividend and the announcement of a share buyback programme are both supportive and indicative of future confidence in prospects, whilst the company also continues to bear down on costs." |