Greencore says trading is in line with expectations save in a number of sectors. It admits that foot-and-mouth has hit sales of pies and sausages and that it has been a difficult market in the UK baking industry. Ready meals also continue to underperform, according to a statement issued ahead of the company's closed period.

It said good progress was being made in relation to the reorganisation and integration of the recently acquired British company Hazlewood. The group continues to expect that cost savings of more than £7 million sterling (#4.36 million) will be achieved by the end of the second year after the Hazlewood acquisition. The company was bought for £258 million sterling last November.

The merging of Greencore's pizza and sauce operations with the equivalent Hazelwood operations was under way, the group said.

Mr David Dilger, chief executive, referring to the acquisition of Hazlewood, said: "Management continues to focus its energy on maximising cost savings, restructuring loss making operations and reducing debt.