Morrisons has reported a fall in half year profit of just over 30 per cent as it continues to suffer from the effects of the continuing supermarket price wars.

The retailer's pre-tax profit for the six months to 3 August, 2014, fell to £239 million from £344m a year earlier.

Added to that, like-for-like sales excluding fuel fell 7.4 per cent from a 1.6 per cent fall the previous year.

Sir Ian Gibson, non-executive chairman at Morrisons, told BBC News that trading conditions were tough, and noted that the whole industry was experiencing 'unprecedented change'.

'Our first-half results reflect the reset of the business we announced in March. Morrisons is now well underway with building the foundations for a better future. The board is confident of the new strategy and Morrisons financial position remains strong,' Gibson said.

Morrisons has embarked on a three-year £1bn investment programme to cut prices and has plans to open 200 discount stores, following in the footsteps of other leading supermarkets.

The supermarket said it expected online shopping and convenience stores to drive overall market growth over the coming years.

Online shopping, which Morrisons only launched earlier this year, contributed 0.4 per cent to overall sales in the six months to 3 August.

Of the retailer's struggles, Julie Palmer, a partner at business rescue firm Begbies Taylor, said: 'Both LFL sales and underlying pre-tax profit have decreased dramatically as Morrisons has struggled to compete with spiralling prices and to find its feet amongst the five ‘value’ retailers, with its products still deemed too expensive against the likes of Asda.

'Whilst Morrisons is cash generative, it is clear it should re-invest that cash in strengthening its online and convenience store offering and its price competitiveness rather than placate shareholders before it’s knocked out of the race altogether.”

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