UNITED News & Media, which last week struck a £1.75bn deal to sell its ITV franchises to Granada Media, has posted a 21 per cent jump in profits after what it described as an "outstanding" first half-year.

Headline profits for the six months to June 30, excluding results from online businesses, new ventures and one-off costs, had jumped to £191.9m. Turnover grew by 14 per cent to £1.15 bn.

Chief executive Lord Hollick said: "This has been an outstanding first six months for United."

The results come just a week after United agreed to sell its ITV licences, production and airtime sales businesses to Granada Media, the broadcast group which controls Tyne-Tees and Yorkshire.

The pair clinched the deal a week after United and rival Carlton Communications called off their planned £8 bn merger.

That merger fell apart following a ruling by Trade Secretary Stephen Byers that a deal could only go ahead if United's Meridian ITV franchise was sold.

United's subsequent deal with Granada will see United raise finance to eliminate its net debt and give it the financial muscle to build its other businesses.

Lord Hollick said: "Our objectives are clear. We are substantially strengthening our balance sheet and now have the financial flexibility and management focus to ambitiously develop our position in our core high-growth market information sectors."

Under rules laid out by the Trade and Industry Secretary earlier this month Granada Media will have to sell off the HTV franchise, covering Wales and the West Country, in order to comply with the ruling on competition.

Granada Media said United's strengths in children's, animation and wildlife programmes would complement its own strengths in drama, soap and entertainment and factual genres. It expected the combined business to generate cost savings of around £30m a year by 2002