Morrisons 3

Morrisons' profits have taken another hit as the supermarket price war rages on.

The supermarket, which recently returned to the FTSE 100 after the three-month spell, posted profits of £242 million in the year to the end of January, down from £345m for 2014.

Morrisons' turnover fell 4.1% to £16.1 billion, with like-for-like sales - a key measure for supermarkets which excludes new stores - were down 2%. Under normal circumstances, a 2% fall in like-for-like sales in the supermarket industry signals a huge problem. But given the 5.9% drop it reported in 2014, Morrisons can be relatively pleased.

Chief executive David Potts said: "By improving the shopping trip for customers, we have started the journey to turn around the business and make our supermarkets strong."

In February, Morrisons announced a deal which would see it sell food products through Amazon to Amazon's Prime and Pantry customers.

But Mr Potts warned that the "turnaround will take time and will continue to require sustained investment in the proposition".

Morrisons, like the rest of the 'big four' supermarkets, has embarked on an intensive cost-cutting programme in a bid to fight off the challenge from budget chains Aldi and Lidl.