MORRISONS has revealed that profits were cut by more than half over the past year after it was hit by £290 million in pandemic-related costs.

The supermarket group told investors that profits before tax and exceptional costs slid by 50.7 per cent to £201 million for the year to January 31.

The Bradford-based retailer said it was impacted by higher-than-expected pandemic costs after a recent increase in absences, as well as the £230 million impact of handing its business rates relief back to the Treasury.

Group like-for-like sales, excluding fuel and VAT, jumped by 8.6 per cent as it was buoyed by strong grocery demand, with nine per cent growth in a strong final quarter.

Morrisons said online sales tripled during the year as its capacity jumped five-fold.

It said online and wholesale operations are both profitable and it expects these to continue to improve.

The company expects to post higher profits for the new financial year and has seen "strong trading" since it began in February.

Andrew Higginson, chairman of the company, said: "This has been a year where Morrisons' resilience has been severely tested and I could not be more proud of the way the whole business has met that test.

"As we look forward to brighter times ahead, Morrisons is developing into a stronger, better business with deeper and closer relationships with our customers and the communities we serve."

David Potts, Chief executive, said: "I'm pleased with the greater recognition, warmth and affection for the Morrisons brand from all corners of the nation, following a year like no other.

"We must now look forward with hope towards better times for all, and we're confident we can take our strong momentum into the new year, targeting profit growth and significantly lower net debt during 2021-22."