The tills are ringing again at Boots

Pre-tax post exceptional profits jumped 18% to �581m, while underlying profits rose 2.7% to �544.6m.

The company also announced it would be extending its share buyback programme to �700m over the next two years.

It said the profits increase reflected higher sales at its Boots the Chemist and Healthcare International operations, as well as lower costs.

Sales from continuing operations increased 5% to �5.33bn.

Cutbacks

The group added that cost-cutting measures had offset the impact of lower prices.

The 150-year-old retailer is trying to shake off years of slow growth and counter increasing competition from cut-price offers in supermarkets such as Tesco, who have eaten into its market share.

Boots added it had also taken a �16m hit after speeding up its head office job-cutting programme as part of its rationalisation plans.

Around 1,000 staff have volunteered for redundancy since January - a higher figure than expected.

The group also announced it planned to spend �700m on buying back shares over the next two years - accelerating its current �150m a year spend.

Looking ahead, the firm said its �390m expansion drive investment should result in faster growth and stable profit margins - however, it warned that the move was not without risk.