Woolworths profits go up 32%

British retailer Woolworths has reported a 32.2% rise in underlying full-year profits to £69.8m. (€104.88m).

The company said today that solid sales growth, margin improvements and continued cost-cutting had helped it notch up a second year of strong profit growth.

The group said it would invest a total of £25m (€37.60) in its main Woolworth store chain in 2004/5, including its new store till system.

It plans to build on the progress by increasing investment in new store technology by £9m (€13.52m) to £19m (€28.55m) this year.

Woolworths is presently undergoing an overhaul to shake off its old image and is to end expansion of its out-of-town 'Big W' chain.

It also intends to cut the size of Big W's existing 21 branches to focus on a narrower range of products.

Chairman Gerald Corbett, the chairman, said trading in the new financial year was in line with expectations.

"Following this year of solid progress, the investment programme announced today builds on the operating improvements achieved and heralds the prospect of further growth," Corbett said.

Woolworths faces growing competition from Tesco and other supermarkets which are making bigger inroads into its product areas.