LONDON (AP) — British retailer Marks and Spencer Group plc yesterday reported a rise in full-year profit of nearly four percent, led by increased sales of non-food items such as clothing.

Net profit for the year ending April 3 was £526.3 million ($754 million), up from £508 million in the previous year, the company said. Revenue rose by 5.3 percent to £9.54 billion.

Results were at the top end of forecasts, said Kate Calvert, analyst at Shore Capital.

Marks and Spencer shares were down 2.6 percent at 325 pence as the London Stock Exchange opened.

"With some tough times ahead and the current management unproven, the jury remains out and the general market view is no more than a hold," said Richard Hunter, analyst at Hargreaves Lansdown Stockbrokers.

Merchandise sales on a comparable stores basis rose 1.6 percent while food sales returned to positive for the first time in two years, rising 0.3 percent.

M&S trimmed its annual dividend to 15 pence, down from 17.8 pence a year earlier.

Chairman Stuart Rose said the company had a "satisfactory" start in the first quarter, but remained cautious about the full-year outlook.

Marc Bolland, formerly CEO at Morrisons supermarkets, joined Marks and Spencer as chief executive on May 1, and is expected to give early attention to improving the performance of the company's food offering.

Rose, who formerly served both as chief executive and chairman, will lead the search for a new independent non-executive chairman before finally leaving M&S in March 2011.