Marks & Spencer Group has reported its highest pretax profit in over ten years as its reshape plan continues to boost its performance, with higher sales in both its clothing and home, and food divisions.

Marks & Spencer is in the “strongest financial health since 1997”, bosses have said, after sales at the FTSE 100 retailer jumped more than £1bn last year.

The retail bellwether reported a 58% hike in underlying pre-tax profits to £716.4 million for the year to March 30.

After two decades of failed turnaround efforts, M&S, under chief executive Stuart Machin, is finally reaping the rewards of an expensive investment programme to improve the quality and value of its clothing and food, upgrade its technology and e-commerce operations, modernise its supply chain and radically overhaul its store estate.

Marks & Spencer has revealed a better-than-expected surge in annual profits but it has ramped up cost-cutting in the face of a soaring wage bill.

Marks & Spencer has posted a rise in sales and profits across food and clothing and home as its "reshaping for growth" strategy paves the way for "the beginnings of a new M&S".