Cigarettes, premium lines and tight cost control have helped contribute to a 65.5% increase in pre-tax profit at Netto, according to MD Richard Lancaster. As part of a range and store revamp, Netto has "focused on improving layout, signage and graphics, our in-store marketing and weekly leaflet, as well as grocery and non-food ranges," said Lancaster, who took the helm in January 2007. Pre-tax profit rose to £10.4m in the year to 31 December 2007 on turnover up 11% to £696m. Operating profit rose 195% to £9.3m. Lancaster has made numerous changes to the business including the introduction of new ranges, such as the premium Simply Irresistible range, a stores facelift and the trial of new initiatives such as selling tobacco. He said the company planned to open a minimum of 20 new stores in the next 12 months, adding to its 182 existing stores. "We've extended our Saturday opening hours and introduced tobacco following a successful trial in selected stores. The main reason for the increase in profit is being customer-centric throughout," said Lancaster. "We have given the team oxygen to then get out there and deliver the strategy and they have responded superbly. In addition, a re-assessment and tight control of the cost base has borne fruit." Lancaster predicted tightening financial conditions would draw more customers to Netto stores. "It is now common knowledge that families across Britain are having to spend hundreds of pounds more on their annual grocery bills. We're saying that doesn't have to be the case," he said. Latest TNS figures show Netto's share of the grocery market flat at 0.6% year-on-year, but sales were up 6% year-on-year for the 12 weeks to 20 April. Of the discounters, Aldi is the strongest-performing, having seen a 17.4% sales increase over the same period, according to TNS. It has also upped its share of the grocery market to 2.7%, from 2.5% a year ago.