M&S has shown it is firmly in recovery mode after years in the doldrums in an update that will provide assurance that consumers are still spending in spite of the cost-of-living crisis, for now.

The company posted £325.6 million first half profit, up 56% from £208.5m in the same period last year.

The results, for the 26 weeks to September 30, cover a period in which total sales grew by 11% to £6.2 billion against a challenging backdrop.

Consumers have faced a squeeze on their spending power amid a surge in inflation. This has been accompanied by sharp increases in the cost of servicing mortgages for many homeowners after the Bank of England increased interest rates to keep a lid on prices.

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The growth in first half revenues was driven by a strong performance by M&S’s UK foods division, which increased sales by 15%, to £3.8bn.

UK sales of clothing and home products rose 6% to £1.85bn.

But with the company achieving higher profit margins on home and clothing sales the growth achieved by that part of the business was especially valuable.

Management welcomed signs that M&S has rediscovered its ability to deliver products shoppers want following a long period in which it appeared to have lost its way.  After being able to take the loyalty of women who manage household clothing budgets for granted, M&S found itself squeezed between discounters and firms that offered trendier products.

In the results announcement, chief executive Stuart Machin said: “In Clothing & Home we backed lines with authority … maintaining our lead on quality and value perception and improving our style credentials.

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Cost-cutting has been a big factor in the company’s recent success, with £100m savings achieved in the first half.

The drive to increase efficiency has been accompanied by store closures in Scotland in recent years. The flagship branch on Glasgow’s Sauchiehall Street closed in April last year.

However, in Spring M&S will open a food hall in Largs, its first outlet in the Ayrshire town. It also plans to open stores in Dundee and Linlithgow next year.

Mr Machin noted M&S has focused on delivering value amid the surge in inflation. It has lowered the price of 200 food products.

Against that backdrop, conditions have been better than some may have feared. M&S welcomed “surprisingly resilient consumer demand”.

The company noted: “Trading momentum has been maintained through October, with customers responding positively to our Christmas ranges.”

However, citing the highest interest rates in 20 years, deflation, geopolitical events, and erratic weather, M&S cautioned: “We are not relying on the favourable recent market conditions persisting.”