Morrisons’ partnership with online retailer Ocado appears to be paying off. Profits at the UK’s fourth-largest supermarket retailer increased 11.6% to £337m last year. This was driven by like-for-like sales growth of 1.7% (excluding fuel) which accelerated to 2.5% in the last quarter. This is the first full year of like-for-like sales growth since 2011/12.

Turnover increased 1.2% to £16.3bn despite store closures. Underlying operating profit was up 8.3% to £432m, with margin up 17 basis points to 2.6%. Net debt reduced by £552m to £1,194m.

Chief executive David Potts warned that it was only year one of the turnaround and that the group had more plans and important work ahead. He added that there were some uncertainties ahead, especially around the impact on imported food prices if sterling stays at lower levels.