PROGRESS

Frozen foods specialist Iceland has posted rising fullyear profits after reaping the rewards of revamped product ranges and a new store format.

However, Iceland also yesterday gave warning that the slump in the value of the pound since the Brexit vote had ramped up the cost of imports and, in turn, shop prices.

“We continue to work with our suppliers to mitigate these pressures as far as we can, so as to minimise the impact on consumers, but the economic environment will clearly remain uncertain until we achieve clarity on the timing and nature of Brexit,” the firm said.

The retailer saw core earnings rise 6.3 per cent to £160 million in the year to 24 March, with sales up 4.4 per cent to £2.8 billion and likefor-like sales increasing 2 per cent.

Founder and executive chairman Malcolm Walker said the figures show that Iceland, which had 70 stores in Scotland at year-end, the same number as in 2016, is now one of the UK’S fastest-growing

0 Iceland has seen profits grow and is updating its stores and products

MALCOLM WALKER food retailers. He said: “The set of strategic initiatives we began in 2015, with the aim of differentiating Iceland, changing consumer perceptions and so restoring growth to our business, bore fruit in the year under review.”

Walker also highlighted a record Christmas and said: “Like-for-like sales performance improved throughout the year… We increased the pace and enhanced the quality of our new product development.”

He also said the business ended the financial year with “its best-ever product offer, strengthened management, high morale and growing confidenceinourabilitytoachieve continued growth by simply being ourselves: a unique British business focused on high quality, innovative and exciting food”.

The chain has embarked on a marketing campaign aiming to “change perceptions of Iceland and frozen food”, which appears to have paid off.

It opened a £2 million development kitchen at its Deeside

“Like-for-like sales performance improved throughout the year… We increased the pace and enhanced the quality of our new product development”