Marks & Spencer (M&S) has reported a jump of 58% in its annual profits to £716.4m.

The retailer’s statutory revenues have also climbed by 9.3% to £13bn in the year to 30 March as the group reported increased sales across its stores and online.

M&S, which is listed on the FTSE 100, laid out a five-year growth plan in 2022 and has now recorded growth in both its food business, where sales were up 13% and adjusted profit up to £395.3m, as well as in its clothing and home operations, where sales were up by 5.3% and adjusted operating profit to £402.8m.

The retailer’s chief executive, Stuart Machin, said the financial health of the business is “as strong as it’s been in decades”, with the results showing the “beginnings of a new M&S”.

“Food and clothing and home grew volume and value share ahead of the market and sales increased across stores and online,” Machin said. Both businesses have now delivered 12 consecutive quarters of sales growth and this trading momentum gives us wind in our sails, and confidence that our plan is working.”

“Disciplined capital allocation underpins our plan, and the financial health of the business is as strong as it’s been in decades. Free cash flow has increased, financial net debt has been eliminated, and returns on investment have improved.

“The strength of the balance sheet, coupled with the sustained improvement in performance, means we have the headroom and confidence to invest for future growth as well as introduce a 3p dividend.”

Machin added: “We have a clear plan, a clear vision for the future, and there is so much opportunity ahead of us. We are at the beginnings of a new M&S.”

Manager of the quality shares portfolio at Wealth Club, Charlie Huggins, commented that M&S has had an “excellent year”.

“There is now enough evidence to suggest this isn’t a flash in the pan,” Huggins said. “The most impressive thing about the M&S turnaround story so far has been the market share gains, in both clothing and food.

“They have been able to achieve this while reducing discounts, which is a good sign. In other words, they aren’t just slashing prices in the hope of getting quick sales growth. They have been focused on reinvigorating branding and designs, which ought to be more sustainable.

“All-in-all, M&S’ execution has been impressive in a difficult retail environment.”

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