M&S full-year profits have topped £1 billion – an increase of 4.3%.

M&S has reported a 4.3% increase in full-year profits of over £1 billion, yet said it remains cautious about the coming year.

For the year ending 29 March 2008, the retail chain generated a 5.1% increase in sales to £9bn, up 4.2% in the UK and 16.8% internationally.

On a like-for-like basis, however, UK sales were down 0.5%, with general merchandise and food suffering losses of 0.5% and 0.4% respectively.

The company described trading for the start of 2008 as “mixed”, citing dramatically different weather patterns, yet said that it has so far seen a “marked improvement” for May.

The company also announced that its staff will not receive a bonus this year, as it failed to meet its internal bonus targets.

Looking forward, M&S Chief Executive, Sir Stuart Rose, said he expects market conditions to remain difficult “for the foreseeable future”. In light of this, stock control and management of costs remain a priority, he said.

Rose added: “M&S is well positioned to compete in this challenging market. We are giving our customers’ better value and more choice than ever before. Brand momentum continues to strengthen and we have made significant investment to improve the quality of our trading space.”

For more information, visit: www.marksandspencer.com

By Natasha Piscitelli