ONE of the region's biggest employers has announced record sales figures and a big rise in profits.

North-Eastern and Cumbrian Co-op, which employs about 13,000 people, increased its turnover by just over £13m last year to £533.9m.

Trading profits before dividend leapt from £6.1m to £10.3m. The Co-op said that £4.3m was handed back to customers through its dividend card scheme.

The healthy bottom line figure survived the closure in 1999 of three superstores, including the Neasham Road store in Darlington.

Chief executive Neil Arnold said: "The disposals were part of a strategy to move away from the volatile superstore and hypermarket sector and to develop our strength in local community retailing."

The Co-op remains the only supermarket chain which still has stores in villages. The company has even opened new community stores, called Co-op Welcome stores, in towns and villages across County Durham, including Newton Aycliffe, Bearpark, Sacriston, Wheatley Hill and Cockfield.

The Co-op is also the region's largest undertaker, with 80 funeral homes conducting 12,000 funerals a year. It also has 25 dairies employing 1,300 people.

It has a part to play in chemists, 11 post offices, 14 agricultural co-operatives, 80 credit unions and 30 housing corporations.