BAKERY group Greggs is considering expansion into Europe after unveiling a ninth consecutive year of profit growth.

The Newcastle company believes its brands, which include the Bakers Oven chain, may go down well with Continental shoppers.

Mike Darrington, managing director, said it was early days for the plan and that Greggs would "do some learning" during the next three or four years.

He said the company had set itself a target of expanding the operation from 1,105 shops to about 1,700 units in the next ten years.

Mr Darrington said: "We believe there is a potential for at least 2,000 Greggs and Bakers Oven shops within the UK.

"The markets we are in are expanding and we think there is tremendous potential."

Greggs, which employs 14,700, plans to open 65 additional shops this year, although it will close 30, mainly within its Bakers Oven portfolio.

It has been buoyed by a record pre-tax profit figure of £26.4m for the year to December 30, an improvement of 22.5 per cent the previous year.

The company's takeaway food ranges of sandwiches and savouries have become increasingly popular in the South, where its two London-based divisions made "valuable contributions" to group profits.

The portfolio also includes a Bakers Oven outlet at the Millennium Dome, which exceeded expectations with more than 800,000 customers.

Another highlight was the opening of a £2m group technical centre at Balliol Park, North Tyneside, last April.

Sales across the group grew by 9.8 per cent to £339m, with like-for-like growth up by 6.8 per cent.

Shareholders will receive a total dividend of 55p, an improvement on the 45p offered a year earlier