It is also planning a Sainsbury's credit card and other financial services which could include deposit accounts, pensions and Personal Equity Plans. Profits fell from pounds 809m to pounds 712m and its sales increases are continuing to lag behind arch-rival Tesco and the much-improved Asda.The latest market share figures show Tesco pulling further ahead with a UK share of 21.2 per cent, compared with Sainsbury's 18.5 per cent.The discount card will be launched in the next two months but the company has not yet released any details on how it will operate. Sainsbury's is to follow Tesco and Safeway with the launch of a nationwide loyalty card in a bid to revive its flagging fortunes and declining market share. The decision marks a U-turn by the company, whose chairman, David Sainsbury, dismissed loyalty cards as "electronic Green Shield stamps" when Tesco launched its Clubcard scheme a year ago. The card now has more than 5 million members and has helped Tesco replace Sainsbury as Britain's largest supermarket chain. Sainsbury's announced the plans yesterday along with its financial results for last year which showed that profits fell for the first time in its 22 years on the stock market.

They allegedly strangled and buried him near the home Morss shared with Guttridge The case continues.. But he agreed that while Morss was capable of killing a child, he did not believe Tyler could. Guttridge, who had also been in Wormwood Scrubs, told the jury that Mr Morss confessed to him about the killing, but he "could not or would not" believe it of a man he had loved.Morss and Tyler are said to have abducted Daniel close to his home in Beckton, east London and taken him to a flat where they videoed themselves having sex with him. He had been emotionally cold while describing his "violent paedophiliac fantasies".Earlier, Guttridge, who awaits sentencing for perverting the course of justice after paying for Morss to flee to the Philippines, described how he had "hated Tyler's guts".He believed Tyler was winding up Morss, who believed sex was about vengeance, over his love for young boys. He was "sufficiently concerned" to contact police and later heard from another psychiatrist, who was treating Guttridge, that Guttridge and Morss might be trying to leave the country.Under cross-examination from Rock Tansey, QC, for Tyler, Dr B agreed Morss had a powerful personality, was brash, sadistic and enjoyed shocking people with his fantasies. Morss and Tyler were then in Wormwood Scrubs prison, serving sentences for sexual offences.Morss, who was more curious than a willing participant in sessions, had described to Dr B his fantasy of abducting and murdering a pre-pubescent boy aged eight to 13 The boy had to have blond hair and blue eyes "He was very specific about that," said Dr B. His former lover, Tyler, 30, admits abducting and sexually assaulting Daniel, but denies murdering him on 2 October 1994.Dr B, said to be national expert on child sexual abuse, told the jury that Morss had become his client after a recommendation by Morss's friend and later lover David Guttridge, 59.

The expert on child sexual abuse - identified only as Dr B - said he had "no hesitation" in informing detectives about the sexual fantasies of Timothy Morss after being told by his wife of a BBC TV Crimewatch programme on Daniel's murder. Asked by John Bevan, for the prosecution, if he had agonised with his conscience over the decision, the doctor replied: "On the matter of the murder of a child and child protection there was no hesitation on my part." The man he named, Morss, 33, and his co-defendant, Brett Tyler, were arrested days later Morss has admitted the murder. A leading psychiatrist put aside patient confidentiality to tell police he suspected a man of the murder of nine-year-old Daniel Handley, the Old Bailey heard yesterday. Civil war erupted in the Tory Party over Europe again last night, as John Redwood disclosed he is seeking to broker a deal between the Government and Sir James Goldsmith, the international financier, over a referendum. In a bid to end the threat to Tory seats at the general election by the Referendum Party, Mr Redwood said he would discuss with Malcolm Rifkind, the Foreign Secretary, his plans for a referendum on Europe to be held on the same day as the general election. Mr Redwood's pressure for a referendum came as the divisions in the Tory party were exposed again over the European issue with Edwina Currie, the pro-Euro Tory MP, attacking demands by Theresa Gorman and Euro-sceptic colleagues as "completely lunatic".David Howell, leader of the One Nation group of Tory MPs, warned colleagues they had "lost the power of argument and found only the power of abuse". Lord Parkinson said the Euro-rebels were only damaging the Tory party's prospects.Disclosing that the One Nation group would publish its own manifesto bids within days, Mr Howell condemned as "deplorable" Euro-sceptics who were "calling themselves Conservatives but unable to conduct themselves as such".Labour last night announced it would seek to exploit the Tory splits by forcing a vote next week on the Common Agricultural Policy in an annual debate, on which there is normally no division.John Prescott, the Labour deputy leader, said: "John Major is trying to control the uncontrollable It is difficult not to feel sorry for him Attacked from left and right, ignored by everyone.".

Mrs Clwyd forced an adjournment debate in the Commons on his case and pressed the Foreign Office, South African High Commission and US Embassy in London on the issue. Her efforts, said Mr Grecian's father, were in stark contrast to his son's local MP, the Conservative John Redwood, who had not shown much interest.Joining him at a Westminster press conference, Mrs Clwyd said that it was time for the Government "to make amends for the many years that Paul Grecian has lost and been branded a criminal in a situation involving a government cover-up".Mr Grecian said he now hoped to get back on his feet commercially and start up in business again.. The US prosecution, he claimed, had been motivated by spite.Mr Grecian paid tribute to his father, John, and Ann Clwyd, the Labour MP, who campaigned tirelessly on his behalf. Before leaving for South Africa, he was assured it was safe for him to travel. Last week, the US charges were thrown out by a South African court and described as "unacceptable".Yesterday, looking tired and drawn, Mr Grecian said that he had expected to be in jail for the remainder of the year resisting extradition.Now that he was free, he would be studying the Scott report - which was highly critical of his original prosecution brought by Customs and Excise.Mr Grecian accused the US and South African authorities of "not having acted with great faith". Paul Grecian, the businessman who successfully fought attempts by the US to extradite him on arms-to-Iraq charges, is planning to bring claims for compensation against Customs and Excise and the American authorities. Immediately upon his return to Britain from South Africa, where he has spent five months fighting attempts by the US to extradite him, Mr Grecian said he would now be turning his attention to the Sir Richard Scott's arms-to-Iraq report and its comments about his case. Along with two colleagues from his former high-tech engineering firm, Ordtech, Mr Grecian was convicted at Reading Crown Court in 1992 of supplying a fuse assembly line to Iraq.The men subsequently appealed and their convictions were quashed in December last year because the Government had withheld vital defence evidence from their trial.As soon as he won the appeal, Mr Grecian flew to Johnannesburg with his South African fiancee, only to be arrested to face similar charges brought in the US.