1. ITV Report

Surge in profits for Bradford-based supermarket Morrisons as turnaround plan bears fruit

Morrisons has reported a surge in full-year profits as the supermarket cements its turnaround and reaps the rewards of investment into cutting prices.

The Bradford-based grocer reported a 49.8% rise in pre-tax profits to £325 million and notched up like-for-like sales growth of 1.7% in the year to January 29 and 2.5% in the fourth quarter.

Revenue came in at £16.3 billion, up 1.2%, as the results solidified the chain's return to form under chief executive David Potts.

Our full year of like-for-like sales and profit growth was powered by listening to customers, and shows what our hard-working team of food makers and shopkeepers can do. But, it's only one year. Our turnaround has just started, and we have more plans and important work ahead. If we keep improving the customer shopping trip, I am confident that Morrisons will continue to grow.

– David Potts, Chief Executive

The company said its Price Crunch initiative has seen more customers come through its doors.

Morrisons, which secured a deal to sell groceries through Amazon under Mr Potts, added the internet titan's lockers are now in over 400 of its stores.<

In addition, following a successful trial, a similar roll-out is also planned with Doddle.

However, it sounded a note of caution on the year ahead, warning of the "impact on imported food prices if sterling stays at lower levels".

Food prices are beginning to rise on supermarket shelves as producers begin to pass on soaring import costs triggered by the Brexit-hit pound.