SUPERMARKET chain Morrisons has unveiled further expansion plans in the North-East after announcing big profits.

The firm revealed pre-tax profits for the first half-year of 2002 of £114.5m - an increase of 16.1 per cent on last year.

And its development programme is set to continue apace, with more stores due to open in its core area of the North-East and Yorkshire.

Nine new supermarkets have been announced for next year nationwide, creating about 2,500 jobs.

Stores are already planned for Hartlepool, Manchester and Hinckley, in Leicestershire, for 2004 - creating about 1,000 jobs - and other sites are in the final stages of negotiations.

Average takings per Morrisons store rose by 7.1 per cent in the first 27 weeks of the year - an increase in customer transactions of 2.9 per cent - and a 4.1 per cent increase in average basket size.

Company chairman Sir Kenneth Morrison said: "We put value for money to the fore, keep focused on food and stay clear of expensive distractions.

"Our customers get genuinely good value every time they shop with us. It's an attractive proposition being welcomed by shoppers everywhere."

New stores have opened in the South this year and more will follow in the North-East. A Redcar branch is scheduled to open on November 4 and a Newcastle store two weeks later.

Sir Kenneth said: "Although we have an extensive expansion programme, there are still many areas of the country where we do not operate, and feel we have something to offer.

"We are therefore actively pursuing more new sites and a number are in the final stages of negotiation and planning."

Morrisons also reported a positive start to the second half of the year, with takings 8.9 per cent ahead in the five weeks to September 15.

"All in all, I believe we are well placed to withstand the fiercely competitive conditions that prevail in our sector, and move forward with confidence," said Sir Kenneth.