Turnover and profit levels at United Co-operatives have soared, according to the firm's first set of post-merger results.

The company was formed last year after Bradford-based Yorkshire Co-operatives Ltd was given the go-ahead to merge with United Northwest Co-op.

The firm, which is the UK's largest regional co-operative society, has reported growth in turnover of nearly 30 per cent from £1,022 million to £1,324 million.

Peter Marks, chief executive of United Co-operatives, said: "In the year ended January 2003, turn-over grew by almost 30 per cent, reflecting a full year of United Norwest figures and the contribution of Yorkshire Co-operatives from the date of the merger.

"Even excluding the impact of the merger, turnover would have increased by a very creditable 10.8 per cent."

The Stoke-on-Trent-based company has also revealed plans to spend £70 million this year developing its businesses.

Mr Marks added: "All our businesses have made a positive contribution to the society's continuing success. In Yorkshire, the year saw the completion of a six-year refurbishment programme in our food stores, along with Sunwin Motor Group selling the 50,000th car since its launch, and the completion of a multi-million pound development programme at our Bradford and Harrogate department stores. This is the ninth year in a row that the society has been able to report improved results and I am confident that we will make it a perfect ten next year.

"The new society has very strong foundations and a clear trading strategy based on our core retail businesses of food, travel, motors, pharmacies, department stores and funerals.

"We will start to see the full benefits of the merger appearing this year, to be followed by further progress in future years."

The new business employs more than 15,200 people and operates nearly 1,000 outlets.