THE UK's biggest ice cream maker last night said it had managed to increase half-year profits to £2.9m - despite a difficult marketplace.

Richmond Foods, based in Leeming Bar, near Northallerton, North Yorkshire, said take-home sales of its ice cream were down 5.1 per cent compared to the first six months of last year.

The results could be its last as a public company as Richmond has received a 750p per share takeover offer from US equity fund Oaktree Capital Management, which has been recommended by the board of directors.

Chairman William Warburton said he believed the offer represented good value for shareholders. Under the proposed ownership, Richmond - which produces a range of Nestle-branded ice creams and lollies, including Orange Maid and Fab - would be part of a larger, pan-European ice cream business, including Italy-based Roncadin ice cream group that is already owned by Oaktree.

Yesterday, Mr Warburton said sales in the first half of the year were slower, but a reduction in overheads by closing Richmond's Cornwall factory had led to the profit improvement.

After the closure of its smallest site at Bude in Cornwall, production was transferred to its other sites in Leeming Bar, Wigan and Leeds.