Exceeding city forecasts, the company's pre-tax profits are looking very healthy at £147.9 million with shares creeping up 6p to 664.12p. The final dividend has been declared at 22p up from just over 20p.

The company's dairy business performed best, with profits up 17.4% at £40.5 million. Fresh foods including Malten Foods and St Ivel saw their profits rise 10.7% to £73 million.

A drop in the "artificially" high prices of pig meat and a reduction in the cost of milk lead to a gentle fall in turnover from £2.36 billion to £2.31 billion.

Unigate Chief Executive Ross Buckland said the results showed consistent profitable growth. He disclosed they will continue their strategy of expansion by acquiring other businesses at the right price.

Unigate does the rounds for a new take-over target

"If we were convinced it was the right thing we would go to two billion," he said.

These comments come in the wake of failed talks with food and furnishings conglomerate Hillsdown Holdings last month.

It was their second attempt to buy the group famous for producing Typhoo Tea and HP Baked Beans.

Unigate pulled-out of the £1.6 billion talks when they spotted a surprising weakness in the Hillsdown's first quarter food profits.

Unigate did not consider the price on the table would have delivered shareholder value.

"We were going to be far too far apart in terms of price so we elected not to got back to them. It just would not have been sensible to continue," said Buckland.

The failed bid has created an unfavourable impression among some shareholders who believe it has exposed a divided senior management.