Greggs unveils higher profits

Greggs, which has 1,480 stores in the UK, said sales increased 2.1 per cent to £662 million in 2010, after it opened 68 new outlets, representing its fastest ever rate of expansion.

Pre-tax profits grew 7.9 per cent to £52.5 million as the group boosted its margins by making efficiency savings in its supply chain.

Some 16,800 qualifying employees will share in a record £5.8 million pay-out from the company’s profit sharing scheme.

The company said sales growth accelerated to 3.8 per cent in 2011 and predicted it will grow like-for-like sales marginally over the year.

Greggs plans to open a further 80 stores in the year as cheap rents become available on the high street.

Chief executive Ken McMeikan said 2011 was likely to see consumer spending come under further pressure from the Government’s austerity cuts and inflation, but said Greggs’ “strong value positioning” would allow it to take advantage of the difficult trading environment.