Supermarket chain Somerfield plans to splash out on attracting shoppers back to its stores after posting its first annual profits for three years.

The group has outlets in Brighton, Burgess Hill, Eastbourne, Lancing, Lindfield, Littlehampton, Newhaven, Petworth, Rustington, Shoreham, Steyning, Storrington and Worthing.

It recorded pre-tax profits of £22.2 million in the year to April 27 compared with pre-tax losses of £13.1 million in the previous year.

Chairman John von Spreckelsen said the business had been stabilised but the focus was now on the acceleration of profitable sales growth.

More than £75 million will be invested in refurbishing 100 Somerfield stores in the coming year to back the introduction of more fresh food ranges.

The retailer is also pumping more money into its discount chain Kwik-Save to revive about 300 sites.

The acquisition of Kwik-Save four years ago marked the start of a downturn in the business that has seen profits and sales tumble.

Sales edged up in the last financial year by 1.8 per cent on a like-for-like basis as store refits and low prices enticed shoppers.

Total sales rose to £4.64 billion from £4.53 billion.

Somerfield said like-for-like sales in the first eight weeks of the current financial year had fallen by 2.2 per cent due to a strong performance a year ago.

Shareholders will receive a final dividend of 1p a share, the first pay out since Somerfield's half-year results at the beginning of 2000.