Bakery ingredients firm, the Real Good Food Company said it was trading in line with expectations but had been hit by increases in commodities.
Revenues were up to £137.8m in the first half, from £128.2m the previous year.
However, increased prices, particularly for sugar, helped push profits down to £3.02m, from £3.09m in the first half of 2011.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Earnings per share came in at 1.5p, down from 1.9p previously.
Executive Chairman Pieter Tott said his firm was going into the critical Christmas trading period with all businesses "in a strong position to maximise commercial opportunities".
"At the same time we continue to develop our medium term growth plans, and I am confident the group will deliver results for the year as a whole in line with market expectations," he said.
The company's sugar sourcing division, Napier Brown, saw sales revenue increase 11% year-on-year, due to higher volumes and increased market prices.
But its bakery ingredients firm, Renshaw, saw a drop in earnings and the company said it would now focus on the expert sugar-craft market.
It also noted that a recovery plans at its patisserie and desserts arm, Haydens Bakery, were taking longer than expected.
Shares were off 3% at 11:45 on Tuesday.
-
8 of the best properties for sale with indoor swimming poolsThe best properties for sale with indoor swimming pools – from an award-winning contemporary house in East Sussex, to a converted barn in Hampshire
-
Chinese stocks slump on first trading day of 2025Chinese stocks suffered in the new year from their worst first day of trading since 2016, despite a state stimulus package
