Sainsbury’s unveils improved profits

Sainsbury’s proved it was turning the corner today as it unveiled improved profits for the first half of the year.

Chief executive Sir Peter Davis said the chain was making ‘‘excellent progress’’ as he showed underlying pre-tax profits in the six months to October 13 rose 3% to stg£309m.

The lift follows strong sales growth over the first half, with like-for-like sales, excluding income from new stores, up 6%.

It also comes despite an extensive refurbishment programme which has seen a number of stores closed for a makeover during the trading period.

Sir Peter said sales at 13 supermarkets refurbished in the first quarter of the financial year were now achieving an average sales growth of 10%.

He added the business as a whole had continued to perform well in the five weeks since the half-year with sales remaining at ‘‘encouraging’’ levels.