BAKERY group Greggs announced record half-year profits last night.

The results came as the North-East chain opened an outlet at Newcastle International Airport, the first of its kind, which could pave the way for shops at other UK airports.

Greggs, which has 1,242 shops, said a drive to modernise its brand had led to higher sales of sandwiches, leading to a 10.6 per cent rise in profits to £13.6m.

The retailer said it benefited from more favourable weather compared with last year, when soaring temperatures affected demand for its products.

It also hopes the opening of a new outlet at the airport, which will sell its products at high street prices, will provide healthy price competition against other airport food outlets.

Managing director Sir Michael Darrington said he hoped to introduce more low-fat sandwich ranges as he said an Atkins diet range of low-carb products introduced in some stores had not been very successful.

He said the company foresaw significant expansion opportunities in the South-East, Midlands, North-West and Scotland in the coming years, but he ruled out any acquisitions of rival companies.

A significant improvement in the performance of Greggs Bakers Oven chain also contributed to the figures for the 24 weeks to June 12 announced yesterday.

Greggs, which sells sandwiches, hot pasties and savouries as well as cakes and drinks, launched a £1.3m television and in-store campaign to update its brand in April.

The drive to emphasise the company's baking heritage featured the slogan: "It's the way we bake it that makes it."

Same-store sales rose 4.1 per cent in the first half. This increased to 7.4 per cent in the first seven weeks of the second half, reflecting last year's hot summer.

Greggs, which owns 216 Bakers Oven shops, said like-for-like sales increased by five per cent following a drive to improve its sandwiches.

The group warned earlier this year that the growth of the sandwich market may be slowing after rapid expansion in recent years. It said at the time that it was also facing stronger competition.

Greggs increased the number of outlets across the group by 11 in the first half and is on track to increase this figure to 30 by the end of the financial year.

This will go some way to its target of having 1,700 shops by 2010 with an annual turnover of £1bn.

Sir Michael said he expected progress to moderate towards the autumn as comparatives for last year become stronger.