Shares in Marks & Spencer fell 21p to finish on 396p yesterday despite the retailer topping the billion pound profit mark for the first time in 10 years.

The clothing to food retailer reported a 20.5% increase in full-year pre-tax profit to £1.13bn on sales up 5.1% to £9.022bn and confirmed it would sell branded food for the first time.

However, analysts were concerned M&S had only broken the billion profit barrier because it had cut staff bonuses. Some analysts forecasted that its profit would drop to £900m next year.

“Our view on M&S remains that it is trying to execute a difficult repositioning in a very tough market,” said Tony Shiret, an analyst at Credit Suisse. “So far, the evidence is that is has not succeeded.”