MARKS & Spencer, Britain's largest clothing retailer, posted a 43-percent fall in net profit for the first half of the year yesterday as costs rose and the company cut prices to keep consumers coming through the doors.

Net profit during the six months to September 27 plunged to 223 million pounds (US$349 million), from 393 million a year earlier, M&S said. Revenue over the same period remained roughly flat at 4.2 billion pounds.

Despite the fall in profits, the company's earnings were still better than analysts had anticipated.

Shares rose by 11 percent to 246 pence in morning trading in London.

M&S said profits were hurt as it was forced to reduce prices on many of its items ?? including over 10 percent of its food offerings ?? to appeal to customers searching for value amid the economic downturn.

"It's essential in these tough times that we retain our faith with our customers and show them that we understand that they're having tough times," Chairman Stuart Rose told journalists.