Safeway has seen pre-tax profit fall 5.6% but that amid all the uncertainty surrounding its future and possible take-over said sales were "stable" in first six weeks of its new year and fourth quarter.

For the year to 29 March pre-tax profit fell to £335m from £355m last year on sales which rose 1.3% to £9.5bn.

Like-for-like sales rose 0.8% when adjusted for the late timing of Easter.

But the supermarket warned that sales growth would slow in the second half when compared to last year when sales were buoyed by the World Cup and the Queen's Golden Jubilee.