ONE of the region's biggest businesses has reported record sales and profits.

The North Eastern and Cumbrian Co-op, which has food stores, funeral homes, department stores and car dealerships across the area, saw pre-tax profits more than double to £10.4m in 2001, on turnover up 6.1 per cent to £566.4m.

The results, which will be presented to members at the group's annual meeting at Newcastle Civic Centre tomorrow, follow a consistent pattern of sales growth over the past five years.

"Every group exceeded its budgeted performance figures and the overall result is one of the best for a number of years," said regional chief executive Neil Arnold.

Much of the 2001 increase was produced by the Priory Motor Group, where sales topped £217.7m, a 16.3 per cent increase on 2000.

During the year Priory sold 15,913 new and used cars, compared to 12,807 the previous year, partly due to cheaper car prices.

Turnover within the food group, which comprises 145 stores in the region, stood at £309.4m, a marginal increase over the previous year, although food profits increased by 33 per cent.

A supermarket was open-ed at Houghton-le-Spring, on Wearside, and work also started on a major project in Newcastle city centre.

Sales from the non-food division's seven department stores increased from £16.9m to £17.1m.

The Co-op's funeral group, which has 76 outlets in the North-East, saw sales rise from £20.3m to £21.7m. During the year, the business arranged 10,170 cremations and 2,889 burials.

In addition, a business venture, Beautiful Day car hire, was launched. A fleet of vintage-style cars, modelled on a 1930 Ford A, were purchased together with a Rolls-Royce and a Jaguar, which are utilised for weddings.