FROZEN foods chain Iceland says its stance against genetically modified foods had helped profits leap ahead of forecasts.

Pre-tax profits for the year to January 2 were £55.1 million compared with £43.5 million the previous year.

The ban on GM ingredients a year ago had won great support among consumers and, along with its pioneering home shopping scheme, dramatically increased its number of shoppers, the group said.

The group plans to open 15 new stores across the UK and Ireland in the coming year, creating around 500 jobs, although some closures were also likely.

Iceland was the first retailer to impose a GM ban on its own-branded products and has since been followed by most major supermarket rivals with plans to restrict GM food sales.

Chairman and chief executive Malcolm Walker said he was personally opposed to GM foods and added: "We are offering customers a choice not to have them and it has certainly been good for sales."

The company was now removing artificial colours, flavourings and preservatives from its own-brand products.

"Frozen food has the image of being stuffed full of artificial ingredients but we are showing it's not - freezing is nature's own preservative," Mr Walker said.

The group had also introduced environmentally friendly freezers endorsed by Greenpeace.

Friends of the Earth food campaigner Adrian Bebb said: "We are absolutely delighted that Iceland is benefiting from its stance on GM food. Turnover was £1.74 billion, up from £1.57 billion.

Shareholders will pick up a total dividend of 5.8p, up from 5.4p last time.

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