Marks & Spencer has posted an unexpected rise in half-year profits despite the “competitive trading conditions” reported by boss sir Stuart Rose.
M&S reported profits of £298.3 million for the six months to September 26, ahead of forecasted results and slightly stronger than a year earlier.
Some 12 per cent growth overseas helped M&S return a sales increase of 2.8 per cent to £4.3 billion in the half-year period.
UK revenues rose by 1.8 per cent but 0.9 per cent overall when changes in store space were not taken into consideration.
Rose, the executive chairman, said that the third quarter of the financial year had got off to a good start, although he warned that trading conditions remained competitive.
M&S also revealed it has given in to competition and now plans to sell around 400 branded products from firms such as Kellogg's, Coca-Cola and Marmite across the UK.
Rose said the premium retailer could “simply never compete" with popular brands and said the move would help add to its offer to customers. He added that no existing products would be dropped as part of the move.
The company said tight management of costs and operating margins also enabled it to beat last year's profits figure.
The result represents a recovery from earlier in the year, when Marks announced a 40 per cent drop in full-year profits to £604.4m.
Rose said: "We have had a good start to the third quarter. The market remains competitive and we remain cautious about the outlook for Christmas and the year ahead."
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