Morrisons reports rising sales and profits

Morrisons, the UK's fourth-biggest supermarket chain, has reported rising sales and profits for the first half of the year.

Like-for-like sales were up 3% for the six months to 30 July, while underlying profit was up almost 13% at £177m.

After a turbulent period two years ago, Morrisons has been going through a major reorganisation, led by chief executive David Potts.

He said that "a new Morrisons is beginning to take shape".

Morrisons recently signed a deal to become the UK wholesale supplier to convenience store chain McColls.

It has also formed a tie-up with Amazon and has invested in its range of "premium" products.

Morrisons' future "looks bright" compared with competitors according to senior retail analyst Molly Johnson-Jones from GlobalData.

"Given that its turnaround strategy is ongoing, and it expects more progress to come, we would forecast positive like-for-like [sales] growth to continue. Its wholesale business is a big asset and further cost saving opportunities remain," she said.

She says the partnership with McColl's is a good move which should boost profits as well as being an outlet for the revived Safeway brand.