PIZZA Express blamed increased competition as it served up weaker annual profits for the first time since it floated nine years ago.

Shares in the Uxbridge-based high street chain, which has an outlet in Old Town, tumbled by over 18 per cent as it revealed plans for an urgent overhaul of its business.

Chief executive David Page wants to refurbish the group's oldest stores and review the chain's menu in an effort to win back customers.

Pre-tax profits in the year to June 30 fell to £38 million from £40 million as like-for-like sales edged up by just 1 per cent.

While sales outside the M25 rose by five per cent, they fell three per cent in London with Pizza Express' oldest restaurants recording the worst performance.

Mr Page said: "This set of results reflects the fact that we are trading in an increasingly competitive market."

He added there was little sign of an upturn in London, where the group has also suffered from a lack of tourist visitors.

Pizza Express runs 300 restaurants but it also sells pizzas in Sainsbury's and Waitrose supermarkets and is piloting a takeaway concept at train stations.

Analysts had forecast profits of around £40 million despite a warning three months ago from the group that sales had begun to slip.