Woolworths boss Gerald Corbett today forecast a recovery at the high street giant in the coming year after seeing profits tumble.

The company made a bottom-line loss of £46.4 million, compared with a bottom-line profit of £54.3 million last year.

A drive to clear excess stocks and low sales over the Christmas trading period hit the business in its first months back on the stock market.

But the former Railtrack chief said the chain was now stabilised with debts brought down and the recruitment of a stronger management team.

Mr Corbett said: "We have made a reasonable start to this financial year and are confident of delivering a recovery in profitability."

Woolworths, best known for its pick n' mix sweets, CDs and children's clothes, was floated in the City by former parent Kingfisher in August.

Mr Corbett said the priority for the business had since been to reduce a huge stock mountain, reduce its borrowings and improve cash flow across its shops.