FOOD company Kerry Group said the appetite of Britons for prepared meals helped deliver another year of profits and sales growth.

Kerry, which employs several hundred people in Hartlepool, Durham and Sunderland, reported a 3.4 per cent increase in like-for-like sales in the first six months of this year.

The group employs about 7,000 across the UK, making brands such as Mattessons and Wall's sausages.

The improvement also lifted its food ingredients businesses, which accounts for two-thirds of revenues, while Kerry said the division was boosted by fast food chains putting a greater emphasis on serving healthier foods.

In its consumer foods business, cheese snack Brunchettas had a successful launch at the end of last year, while Cheestrings gained in the UK.

Kerry, based in Tralee in Ireland, said the performance of its brands ensured it overcame the record surge in energy costs and higher raw material prices.

Kerry said the trading environment was challenging in Europe and the US market had not fully recovered from the end to the low-carb craze and hype around the Atkins diet.

Trading profits for the six months to June were 6.2 per cent higher than a year ago at 160 million euros (£109m) on the back of 2.12 billion euros (£1.44bn) of sales.

Yesterday's results come three weeks after Kerry paid £124 m for the Indian food firm started by spice king Sir Gulam Noon in 1989.

Chairman Denis Buckley said the ongoing consolidation in the ingredients and foods sector should provide further chances for Kerry to acquire rival businesses.

He said: "Our UK and Irish foods brands and customer-branded offerings are well- positioned in industry growth segments. The group expects further business improvement in the second half."

In its biggest divisions, Kerry said sales of food ingredients totalled 1.45 billion euros (£990m) and were 3.8 per cent higher than a year ago. Its consumer foods businesses generated revenues of 820 million euros (£558.7m) - up 3.1 per cent.