LEADING bakery chain Greggs yesterday said profits were ahead of company forecasts as sales climbed by almost five per cent.

The Newcastle-based group said it was trading "satisfactorily" after April's warm weather brought shoppers on to the high street.

The company reported sales up 4.9 per cent on a like-for-like basis across its 1,300 stores since the start of this year, and said the sales boost helped operating profit stay ahead of budget.

The performance for the 18- week period to May 5 was a further improvement on the 3.9 per cent sales rise already posted for the first nine weeks of the year.

Greggs also said the launch last month of a £3m advertising and marketing campaign - its first nationwide television campaign - is expected to produce long-term benefits.

This year's strong performance marks the start of a possible turnaround in fortunes after Greggs experienced its toughest trading conditions for more than a decade last year, with annual profits down 13 per cent to £43.7m.

The group has been forging ahead with plans to revitalise the business, with both store formats and management structure being revamped in an effort to reverse last year's decline.

Alongside the structural and product changes, Greggs is also considering the possibility of opening into the early hours of the morning to take advantage of the late-night post-pub trade.

It is planning to re-focus its store estate on locations where there is a high demand for takeaway food in addition to its traditional high street venues and has plans to add 25 new stores to its portfolio during the current year.