Struggling supermarket group Somerfield reported a steep fall in profits for the full-year and sales declines at its supermarkets and Kwik Save stores.

For the year to April 29, pre-tax profits before exceptional costs fell to £70.7 million against £208.5 million last time.

Including one-off costs, the group recorded a loss of £14.5 million.

Like-for-like sales at its Somerfield stores fell 1.8 per cent while Kwik Save was down 14.7 per cent.

The group warned its performance would continue to decline.

John von Spreckelsen, executive chairman, said: "The group's financial performance will worsen in the first half of the current year before the benefits of our actions translate into improved results."

During the year he said the group had stabilised its direction by "taking key decisions on the retention of Kwik Save, the cessation of Somerfield store disposals and the closure of 24-7".

The group had announced in April that its previously-planned sale of the Kwik Save shops had been halted and it was concentrating on improving trading in the chain.

It also said it had halted the strategy of selling its large Somerfield stores.

In June the group said that in order to concentrate on its core supermarket businesses, it was closing its 24-7 home shopping business.

Mr von Spreckelsen, who took over at the helm following the departure of former chief David Simons in March, added the group was working on reversing the like-for-like sales decline at Kwik Save and changing merchandising and promotions at Somerfield.

"All actions taken so far have been designed to bring stability to the group and to restore the confidence of both our customers and staff."