High street giant Boots hailed the success of its modernising and cost-cutting drive today as it posted a 2.7% rise in annual profits to £544.6 million.

The health and beauty chain said it had been encouraged by trading after its core Boots The Chemist chain saw like-for-like sales growth of 3.9%, marking the seventh consecutive quarter it has delivered good growth.

Today's results follow the group's announcement in January that it would axe jobs as part of cost-cutting plans. In March Boots embarked on a £390 million expansion drive in a bid to modernise the business.

It said around 1,000 staff had volunteered for redundancy since its January restructuring - a higher number than had been expected and a move that will benefit the group in this financial year.

Chief executive Richard Baker, who took the helm last September, said: "We now have in place a clear business plan to make Boots more modern, competitive and efficient, which builds the foundations for a stronger Boots the Chemist.

Thursday May 27, 2004