The recovery of Marks & Spencer has continued apace when it banked its biggest profits haul for nine years.

The high street giant said pretax profits were up 32.2 per cent to £405.1 million in the six months to September 30.

It came as group sales lifted 11 per cent to £3.93 billion, driven by a high-profile advertising campaign featuring 1960s style icon Twiggy.

The first-half profits figure was the highest since the £452 million the company banked in 1997 when full-year profits topped £1 billion.

Some analysts now think that it is possible that M&S can top £1 billion again this year as it puts its recent troubles behind it.

The fashion and food group, which trades from over 450 UK stores, said it is "well positioned" for the crucial Christmas period.

Chief executive Stuart Rose said: "We had a good first half. We have delivered better product, better service and better store environment. We gained in market share in all areas in which we trade."

He added that trading growth in the five weeks since September 30 was "in line with the first-half run rate" despite tougher comparatives with the same period last year.

"We believe we are well positioned for the all-important Christmas period," said Mr Rose.

M&S reported strong sales in food and general merchandise including clothes.

In the final three months of the first half - from July to September - like-for-like sales in the UK were up 6.4 per cent thanks to a 7.9 per cent improvement for general merchandise and a 4.7 per cent lift for food.

M&S improved its market share across the board and now holds 10.1 per cent of the clothing market, reinforcing its position as the largest clothing retailer in the UK.

It came as M&S attracted an extra 19 million people into its stores in the first half of the year, with customers tempted by refurbished stores, better products and the highly successful "Your M&S"

advertising campaign. M&S also announced the first significant shake-up of its store portfolio for almost a decade.

The company said it wanted to ensure it was "in the right place with the right space" as it unveiled a five-year plan to continue its turnaround in fortune.

The shake-up will include opening major out-of-town stores and growing its presence in retail parks.

M&S said it would also enhance its presence in city centres "through extensions, redevelopments and relocations".

It said it will close stores "where appropriate", although its total space will increase by 15-20 per cent over the five-year period.

M&S said: "We have one of the strongest and most recognised brands in the UK which needs a powerful showcase."

It also unveiled plans to roll out its Simply Food stores at BP petrol stations in the UK.

M&S currently has 507 stores in the UK, including 49 Simply Food franchises.

M&S said the new space would help it "stretch the brand" as it moves into new products and services.

The chain now sells electrical goods such as televisions, DVD players, hi-fis and laptops at 13 of its stores. It is also trying out hot food counters and a restaurant recently opened in Newcastle.

Retail analyst Nick Bubb, of Evolution Securities, said the results for the first half were "bang in line with expectations" and added that "the recovery looks assured".

He upgraded his full-year p rofits forecast from £915 million to £985 million.

"The £1 billion being talked about by some people is not impossible," he added.

Shares in M&S closed at 698p last night compared with 343p a little over a year ago.

The rise in share price over the last year or so has sent it well above the 400p a share Sir Philip Green offered for the company in 2004.

Mr Rose, who was parachuted into the hot seat in 2004 to fend off Sir Philip's £9 billion bid, said: "The business is in good shape.

"Our investment in our core business is paying off. These results show that a combination of great value stylish product, exciting stores and good service are what customers want."

He insisted a strategy for his eventual departure had not been discussed.

"I'm not planning on leaving M&S," he said. "I said I'd come for five years - I'm having a fabulous time."

He also announced a 31 per cent rise in the interim dividend to 6.3 per cent a share.

Richard Hunter, head of UK equities at Hargreaves Lansdown stockbrokers, said: "There are a slew of positives - continuing strength in clothes and food, the refurbishment programme advancing, the ongoing success of the TV advertising campaign and even the roll-out of its Simply Food brand across BP forecourts."