Morrisons recovery continues as sales and profits rise

Morrisons has reported rising sales and profits, indicating that the recovery at the UK's fourth largest supermarket chain is continuing.

Profits rose 13.5% to £143m for the six months to 31 July, the first increase in half-year profits for four years.

Like-for-like sales - which strip out the impact of new stores - rose 2% in the May-to-July quarter, the third straight quarter of growth.

Morrisons added it had seen "no negative impact" since the Brexit vote.

"It is too early to know how the recent referendum result could affect the British economy, but customers tell us their food shopping has not changed," it said.

'Encouraging figures'

Morrisons chairman Andrew Higginson said "The new team has made a real difference and delivered further good progress across the board in the first half."

Chief executive David Potts, who has now been in charge for more than a year, has been attempting to revive the retailer's fortunes

"We have made improvements to the shopping trip for customers and we plan to do more," he said.

Investors welcomed the latest results from Morrisons, pushing its share price up by 5% in early trade.

Neil Wilson, from ETX Capital, said: "Amid a struggling supermarket sector beset by cost pressures, these are very encouraging figures and a big boost for CEO David Potts. His 'Fix, Rebuild and Grow' strategy seems to be paying off well."