Greggs on a roll thanks to austerity UK

Austerity Britain is not all bad news according to the boss of Greggs, the high street bakery chain.

"When the consumer is looking to make their money go as far as possible we are very well placed," said chief executive Ken McMeikan. "Last year we saw a 28% increase in coffee sales because we sell freshly ground Fairtrade coffee for 40% less than the branded chains."

The coming year will see Greggs offer more breakfast deals adding croissants, pain au chocolat and porridge alongside the current bacon or sausage roll and a coffee for £1.99.

McMeikan believes he can extend the chain from 1,487 stores to 2,000. "We hope to open around 80 new stores this year and I'm pleased to say landlords are being far more realistic about rents."

Greggs shares jumped 5% after it said profits rose 8% to £52.5 million last year on sales up 2.1% at £662 million. The dividend is up 10% to 18.2p a share, the 26th year of growth.