High street retailer Boots said the cost of implementing its modernisation plan had driven half-year operating profits down 24 per cent.

The retailer said the slump reflected higher pensions charges and a number of price cuts introduced under the Lower Prices You'll Love promotion.

Clearance of seasonal stock and other marketing activity also contributed to operating profits falling to £204.5m from £268.1m a year ago.

The results follow the group's announcement in January that it would axe jobs as part of cost-cutting plans. In March, Boots began a £390m modernisation drive.

It said more than 1,600 jobs had been lost at its head office and manufacturing sites, while a shake-up of its supply chain was progressing well.