PREMIER Foods yesterday said its Quorn brand had continued to experience strong growth, despite a tough trading environment.

The British foodmaker said it was experiencing a number of cost pressures, but was confident in the outlook for the full year and was examining a number of possible acquisitions.

Premier acquired meat substitute Quorn manufacturer Marlow Foods, of Stokesley, North Yorkshire, last year for £172m.

Chairman David Kappler, speaking at the group's annual meeting yesterday, said: "We are seeing positive sales development across our portfolio, despite the challenging trading environment.

"Our Quorn brand, acquired in June of last year, has maintained its strong growth, and we are also pleased by the strong performance of our new Branston Beans which have continued to grow market share."

Premier, which employs more than 350 people in the region, said rising energy prices continued to take their toll.

"We continue to see cost pressures across a wide range of input costs as energy-related inflation feeds through the supply chain," said Mr Kappler. "We plan to mitigate these cost pressures through our ongoing cost reduction programmes and pricing improvements."

Earlier this month, Hertfordshire-based Premier confirmed it was looking at potential deals amid speculation it was poised to snap up the McVitie's and Jaffa Cakes brands.

A report in a national newspaper said Premier had formed a consortium with another trade buyer and two private equity houses to bid for United Biscuits, which employs more than 1,000 people in the region and is thought to be worth about £2.3bn, including debt.

Yesterday, Mr Kappler said: "We remain at a preliminary stage in evaluating a number of opportunities which could meet our acquisition criteria."