Food group Uniq has said its recovery is continuing after it announced a 6.1% rise in UK sales during the last three months of 2006.
Uniq supplies both M&S and Tesco
The firm, which supplies sandwiches and ready meals to Marks & Spencer and desserts to Tesco, recently announced half-year losses of £8.4m.
But while UK sales rose 6.1% in the 13 weeks to 31 December, sales in its northern Europe unit gained just 0.9%.
Uniq admitted that it still had much to do to improve its finances.
"Our trading performance continues to reflect the different stages of recovery and the considerable change management in progress in each of our three divisions," said Uniq chief executive Geoff Eaton.
"The UK is leading the way with good momentum in sales, quality and service.
"However, there is still a considerable amount of work to do to deliver our long-term financial goals."