TROUBLED retailer Marks & Spencer confirmed last night that its share of the clothing market had shrunk.

Although annual profits showed an improvement, the bottom-line figure of £781.6m was still well short of the £1.2bn made in 1998.

The group's share of the clothing market fell by 0.2 per cent to 11 per cent, despite increases in menswear, lingerie, women's casualwear and the new per una womenswear label.

William Maydon, of investment managers Wise Speke, said: "M&S has an enormous scale advantage over its clothing competitors and still has the scope to succeed by making its products more appealing and sourcing them more cheaply."

Efforts by M&S to win back clothing sales included the appointment of former Selfridges boss Vittorio Radice as executive director for general merchandising and Asda's Kate Bostock as head of womenswear.

Pre-tax profits before exceptional items were ahead 0.5 per cent at £763m in the year to April 3.

The food department, seen as the backbone of the group's previous success, recorded a 1.6 per cent increase in same-store sales during the year.