RECORD summer temperatures contributed to a 16 per cent slump in Northern Foods' half-year profits to £32.5m.

The company, which issued a profits warning in September, said brand sales of non-chilled foods had been badly hit by the hot weather.

Northern Foods chairman Peter Blackburn described the performance as unacceptable, and said urgent action was being taken to boost profitability.

Despite this, the group's Dalepak operation, which employs 400 staff at Leeming Bar, North Yorkshire, enjoyed better fortunes on the back of a bumper barbecue season.

Northern Foods has already sold its Fox's confectionery business and pledged to consider the sale of other non-core brands. It is also conducting a review of its corporate structure in an effort to cut costs.

During a difficult six months for Northern, crop prices in Europe soared on the back of reduced farm yields, with cereals and fruit particularly affected.

The company, whose brands include Goodfella's Pizzas, said it had also lost a major contract to supply savoury products to Sainsbury's.

Operating profits fell ten per cent to £42.2m in the six months to September 30, although total sales of £722.1m were still up 6.5 per cent year-on-year.

Outlining the company's restructuring plans, Mr Blackburn said the management of the Fox's and Elkes biscuit brands had already been merged into one unit at Batley, West Yorkshire, but job cuts were ruled out.

Northern Foods has also identified assets which may be sold to consolidate the group. These include a flour milling business, a distribution operation and a canning factory in Ireland.