Richmond Foods, Britain's largest ice cream maker, announced yesterday that it expected to report an eight per cent increase in profits this year.

The maker of Nestl-branded ice-cream, based near Northallerton, North Yorkshire, said profit before tax in the 53 weeks ending October 2 will be about £14.4m, compared with £13.3m last year.

The figure falls slightly short of forecasted profits of £14.7m.

Richmond, which also makes the Skinny Cow range of low-fat desserts, released the figures following what it described as "recent volatility" in its share price.

Broker Numis Securities said shares had fallen by 16 per cent during the past week due to uncertainty.

"The reason as to why Richmond has fallen marginally short of our profit forecasts is, as yet, still unclear. It is, however, worth pointing out that Richmond has grown earnings in excess of 20 per cent in each of the past three years and is a high-quality and well-managed business," said a spokesman.

"It is our view that the reason the company will miss our forecast is likely to be one-off in nature and it should not undermine investor confidence in the long-term investment story."

Richmond employs about 950 people at three UK sites - at Leeming Bar, near Northallerton, which is Europe's largest ice cream plant, Crossgates, near Leeds, and Wigan.

In May, the the company posted a slight fall in half-year profits due to costs incurred at the former De Roma factory, in Wigan, which it took over last year.

Anthony Platts, of stockbroker Wise Speke, said: "Richmond Foods did have a few problems earlier in the year.

"What happened is that somebody who usually orders a lot of stock from its Wigan site deferred an order. Things were not as bad as they could have been.

"In advance of the results, people think things are going to be horrendous when, by the looks of things, it is not going to be at all."

The company will issue a full pre-close statement next Friday.