Marks & Spencer has told shareholders that total revenues dropped after lower clothing and home sales despite an improvement in its food operations.

It reported that food like-for-like revenues increased by 1.3 per cent over the past year but the company saw its clothing and home business report a 31.5 per cent slump despite rapid online growth.

The retailer said its balance sheet is also “stronger than expected” following the impact of the pandemic.

Steve Rowe, CEO at Marks & Spencer, said: “In a year like no other we have delivered a resilient trading performance, thanks in no small part to the extraordinary efforts of our colleagues.

“In addition, by going further and faster in our transformation through the Never the Same Again programme, we moved beyond fixing the basics to forge a reshaped M&S.

“With the right team in place to accelerate change in the trading businesses and build a trajectory for future growth, we now have a clear line of sight on the path to make M&S special again.

“The transformation has moved to the next phase.”