Frozen food specialist Farmfoods has reported a 10% increase in pre-tax profits to £27m despite a dip in turnover last year.
Sales slipped 1.5% to £595m in the year to December 29 after breaking the £600m barrier the year before.
The retailer said that “trading conditions have been and are expected to remain competitive”, in accounts filed at Companies House today.
Farmfoods said its group capital expenditure for the year, including asset acquisitions, was £20.8m, up from £11.7m in 2011 as it invested £14.7m in freehold property.
Farmfoods also said it acquired transport subsidiary Link Logistics (Scotland) Ltd during the financial year. The logistics arm made a £1m loss in the year.
Kantar Worldpanel data released this week showed Farmfoods’ sales grew 2.3% in the 12 weeks to April 15 and its year-on-year market share was stable at 0.6%.
The frozen food market has enjoyed a boom since the onset of the recession in 2008 as cash-strapped shoppers have looked to save money and waste less food.