The top executive at high street heavyweight Marks & Spencer says he believes the business has "turned the corner" after seeing its fortunes take a leap in the last year.

The group posted pre-tax profits of £646.7m for the year ended March 30 -- a rise of 30.7 per cent -- way above analysts' forecasts of £630m.

But chairman and chief executive Luc Vandevelde said the group was not complacent and there was much left to do.

"We have made good progress and believe that we have turned the corner," he said.

" However I recognise our performance was helped by the buoyant high street trading conditions and now our task is to secure the recovery and to build for our future.

"Phase one may be complete, but the plan moves on as we set about growing the business and regaining our pre-eminent position in the UK market."

The group also today said it was planning to open 20 small food stores this year, including one in Summertown, Oxford, and test run two large stores selling home goods by 2004. This will create 1,000 jobs.

The retail giant already has shops in Oxford and Banbury.

Sales last year were boosted by its Perfect Basics collection, the Per Una range for women and its more traditional Classic ranges.

But M&S said that although the UK clothing market remained strong it was "unlikely that current consumer spending levels will be maintained".

Profits in its financial services division were down due to the competitive market for personal loans.