Gregg's Sir Michael Darrington serves up a profits rise

The retailer said a �1.3m advertising campaign boosted sales, and helped push profits 10.6% higher to �13.6m in the 24 weeks to 12 June.

Favourable summer weather - without the soaring temperatures of last year - also fed an increase in sales.

But Greggs said a strong performance in the second half of 2003 would make year-on-year comparisons less flattering in the months ahead.

Sales heat up

Newcastle-based Greggs, which has 1,242 outlets across the UK, said same-store sales rose 4.1% in the first six months of 2004 - rising to 7.4% in the first seven weeks of the second half.

The retailer, which also owns 216 Bakers Oven shops, said the sales increase also reflected a drive to improve the quality of its sandwiches.

"I believe that both our brands are well positioned to deliver further growth, and we therefore expect to report satisfactory progress over the year as a whole," managing director Sir Michael Darrington said.

Greggs added that it was on track to open 30 new outlets by the end of the financial year, having opening 11 new sites by mid-June.