GREGGS has announced pre-tax profits of £58.3 million for 2014 - up 41 per cent on last year.

Like-for-like sales were up by 4.5 per cent - halting a modest decline in sales witnessed by the North-East company in 2013.

Total sales were up 5.5 per cent to £804 million, prompting a dividend per share of 22p - up from 19.5p in 2013.

Announcing the preliminary results, Greggs chairman Ian Durant said the company had made "exceptional progress" in 2014.

He added: "The first steps in executing the strategy outlined in 2013 have surpassed expectations in favourable market conditions.

"Our focus on the food-on-the-go market has resulted in accelerated like-for-like sales growth which, combined with structural cost reductions, has improved the Group’s financial performance markedly.

"There is more to do but we have started out very well on a journey designed to deliver a sustainable business model for long-term profitable growth."

Last year the North-East bakery chain reported a modest decline in sales, as the company battled to win back customers to its hot pies and sausage rolls.