Londis and Budgens franchise operator Musgrave has increased pre-tax profits 16 per cent in the year to December 31, 2007, as it commits to further UK investment.

Last year marked Musgrave's ninth consecutive year of growth, with group sales up 6 per cent to €4.9 billion (£3.9 billion) for the period.

At Musgrave’s UK operations, sales rose 13 per cent to €2.9 billion (£2.3 billion) with a capital investment spend of €51 billion (£41 billion) in the next three years. This investment will be ploughed into IT and logistics.

Musgrave group chief executive Chris Martin said: “We delivered a satisfactory set of results for 2007, with retail and wholesale sales increasing. Through our strategy of developing our business for the long term, we have worked hard with our retail partners to develop strong brands and a differentiated offer, which consumers have responded to.”

The Musgrave Group operates more than 3,400 stores across the UK, Ireland and Spain.