The UK's second-biggest supermarket chain J Sainsbury has met City expectations with a jump in profits for the first half of the year.

The company said on Wednesday that pre-tax profits for the six months to mid-October came in at �342m ($513m), 9.6% up on the same period last year, and at the top end of analysts' forecasts.

Sales rose more moderately, climbing 1.4% on the year to �9.74bn.

Sainsbury chief executive Peter Davis said the company's stronger bottom line reflected cost cuts and an ongoing effort to revamp some older stores.

He added that the better results came despite a tougher retail environment in its main markets.

"This solid performance has been achieved in more challenging market conditions in both the US and in the UK, where there is less growth than last year," he said.

Sweet news

In the City, Sainsbury shares initially jumped 8p before settling back to close down 1.5p at 291.5p.

The company said its stronger finances also reflected the launch of the new Nectar loyalty card, with 11 million customers signing up to the scheme since it was introduced two months ago.

The Nectar scheme, run jointly with Barclaycard, Debenhams and BP, allows customers to collect points on each purchase which can be redeemed for flights, holidays, meals and cinema tickets.

It got off to a rocky start when customers attempting to register online found themselves unable to access the Nectar website.

Mr Davis added that with the Sainsbury store revamp programme about to enter its busiest phase, the company was set to deliver sustained growth in the months ahead.

"While we might have welcomed a more benign environment, we are determined to deliver on our plans," he said.