Woolworths has announced a year-on-year profits crash of 74 per cent for the year ending February 3rd.

Pre-tax profits fell to £16 million, compared to £61.5 million the same period the year before.

However, the company reported a 0.8 per cent increase in sales so far this year.

Woolworths CEO Trevor Bish-Jones said: "Last year was difficult for the Woolworths Group, particularly for the retail business.

"The retail environment is likely to remain challenging in the current year. The first seven weeks of the new financial year have begun positively, but it is early days and we will continue to manage the business tightly."