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Marks and Spencer (M&S) has reported an 11.5 per cent increase in half-year profits and announced plans to expand its international operations.

The high street giant revealed that it made an adjusted profit before tax of £451.8 million in the six months to September 29th, up from £405.1 million a year ago and slightly ahead of analyst expectations.

Overall sales were up 6.5 per cent to £4.2 billion, while in the UK M&S achieved a 5.9 per cent increase in total sales despite difficult trading conditions.

Like-for-like sales within the UK were also up 1.6 per cent, with sales of general merchandise up 2.3 per cent and food sales 0.5 per cent higher.

Commenting on the results M&S chief executive Stuart Rose said: "We had a good first half despite a tough market impacted by unseasonable trading conditions, and at a time when many of our stores were undergoing major refurbishment.

"While the short-term economic outlook remains uncertain, the actions we have taken to reposition and revitalise M&S over the last three years put us in a good position to continue to outperform and give us confidence in the long-term growth prospects of the business," he added.

M&S, which is experiencing a successful turnaround of its fortunes under Mr Rose's direction, says it will have modernised 70 per cent of its retail space by Christmas and 90 per cent by next year's festive season.

Meanwhile the retailer is also growing its internet shopping business, with M&S Direct sales up 60 per cent since the relaunch of its website in March and the unit on target to generate £500 million worth of sales by 2010.

Outside the UK M&S intends to accelerate growth plans for its international business, where sales were up 13.8 per cent over the six months to September 29th.

The company, which has 257 stores in 36 countries, says it now plans to invest in major developing markets such as China and India. M&S wants international sales to contribute between 15 and 20 per cent to group revenues within the next five years.

With confidence in its recent performance, the company today announced a £1 billion share buyback plan and confirmed a 31.7 per cent increase in its interim dividend payment to shareholders – which will be 8.3p.