PREMIER Foods has warned that profits this year will be at the lower end of expectations, despite strong sales of its Quorn brand.

The company, which has Quorn plants in Billingham, Teesside, and Stokesley, North Yorkshire, said the outcome of its year would depend on sales in the last two weeks of this month.

However, Premier, which also makes brands that include Branston Pickle, said yesterday it was delighted with the continued success of Quorn. In August, it said the brand's sales had helped boost pre-tax profits to £27.9m.

Premier predicted total sales for the year will be up 20 per cent due to the acquisition of the UK operation of Campbell's Soup for £450m in August, and the benefit of a full year's trading from Quorn, which it bought last year.

Premier will also add Hovis and Mr Kipling owner RHM to its brand in the new year after agreeing a £1.2bn takeover deal.

Premier chief executive Robert Schofield said that cost pressures in the final half of the year would not be fully offset until early next year.

He said: "The warmer weather has meant that Christmas trading has commenced later than expected and the year is dependent on trading in the final two weeks of the year.

"These pressures, coupled with the effect on volumes of the exceptional period of warm weather, which has continued into December, means that we anticipate that trading for the year will be at the lower end of our expectations, while still delivering like-for-like trading and branded sales growth."