Frozen food chain Iceland reports 'challenging year'

Iceland chief executive Malcolm Walker said it had been a challenging year for the UK food retailing industry

Flintshire-based food chain Iceland has reported a "challenging year", with earnings falling to £150.2m down from £202.2m the previous year.

Figures released on Wednesday show like-for-like sales up to 27 March were down 4.4%, partly due to the effect of stocking new stores.

Iceland opened 28 new stores in the UK and Ireland during the year.

Chief executive Malcolm Walker said: "This has been an exceptionally challenging year for the group."

He added: "In the face of food price deflation, intense competition and significant change in consumers' shopping habits, Iceland has continued its long tradition of successful reinvention.

"We have done this by developing a new store format, launching new product ranges, upgrading packaging, rethinking marketing and initiating a major productivity programme."

Iceland employs 24,000 staff in 859 stores across the UK.