Geest plc has released its interim results for the six months to June 30 2002.

Top line results how there has been a strong sales growth of 16 per cent to £383.2m, and the company has maintained operating profits of £19m reflecting a weaker contribution from salads in May and June.

Pre-tax profits for Geest are £18.2m (up from £17.7m in 2001), with basic earnings per share of 18.1p (up from 17.4p in 2001).

The market for UK fresh prepared foods grew by 10 per cent in the first half of 2002. Geest's sales have lagged this growth, as a disproportionate share of its sales to this market are in cold-eating products, mainly salads.

The growth in these areas was strong until the end of April, but this changed rapidly in May and June, reflecting adverse weather conditions. The effect was exacerbated by a change in consumer habits around the time of UK Bank Holidays and the World Cup.

Sir John Banham, non-executive chairman since September 1, said: 'These results are in line with the statement in June. Profits have been maintained and it remains our expectation that for the year as a whole, operating profits will be no lower than those achieved last year. The outlook for fresh prepared foods remains attractive and we are confident that we will return to normal Geest service next year – hence our decision to raise the interim dividend.

'Although the unusually poor weather in May and June affected our salads business, profit across the rest of our fresh prepared business grew – reflecting a good portfolio of operations – and growth in salad sales returned to normal levels in August. The group has strong market positions, good cash flow and a sound balance sheet – very valuable attributes to support future growth.'