LONDON (ShareCast) - Food group Greencore encouraged with news that operating profit had been lifted by growth in the food to go market, despite the difficult retail environment in the UK.
First-half operating profits rose 7.8% to £40.1m on revenue of £639.8m, which is up 3.2% from the same period last year.

"The UK grocery retail environment remains difficult with profound changes taking place amongst our customers, together with net price deflation. Our business has continued to trade well despite these challenges given its focus on convenience offerings which continue to exhibit volume growth," said the company.

Adjusted earnings per share rose 8.6% to 7.6p and Greencore posted an interim dividend of 2.4p per share.

The company said it was planning a significant increase in capital investment to support customer business wins, with the Phase 1 extension of its Northampton facility successfully completed and the second phase well under way.

"Our strategy of deepening our leadership, capability, capacity footprint and customer partnerships in the UK and US food to go markets continues to deliver growth, with like for like revenue in that part of our business up 8.7%," said chief executive officer Patrick Coveney.

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