HIGH street company Marks & Spencer is confident of regaining former glories despite seeing another plunge in profits.

M&S also announced it is relocating its headquarters to Paddington in west London after 44 years in Baker Street.

Chairman Luc Vandevelde said the move, likely to take place in two years' time, marked the next phase of "building a better business".

Confirmation of the plans came as the retail group reported a further fall in profits.

M&S recorded pre-tax profits of £480.9m in the year to March 31 before exceptional costs, down from £557.2m the year before. Three years ago, M&S made more than £1bn.

Mr Vandevelde blamed "unacceptable" adult clothing sales for the profits fall, but said food, home and beauty sales were strong.

Overall group sales, including M&S's European stores and its US subsidiaries, were £8.1bn, down from £8.2bn.

Clothing, footwear and gift sales were down 5.5 per cent compared to the equivalent 52-week trading period last year, while food and home sales rose by 3.7 per cent and 11.5 per cent respectively.

"We have many strengths to build upon," Mr Vandevelde said.

"Most importantly, the UK business has much clearer focus and direction to deliver adult clothing ranges of greater quality and appeal in a better store environment.

"The results will not be seen overnight, but our customers will see a gradual and progressive improvement."

M&S could raise as much as £600m by selling off the lease on its Baker Street headquarters, but Mr Vandevelde said no plans had yet been made.