Are Next profits set to overtake those of Marks & Spencer?

Next has reported a 12% increase in annual profits to £695m.

The UK fashion retailer also reported a 5.4% growth in sales to £3.7bn to the end of January, and increased its expectations for the year ahead.

Sales via its online and catalogue business, Next Directory, grew by more than 12%, while sales at its stores grew by 1.7%.

Emma Simpson reports.