Frozen foods discounter Farmfoods has reported a rise in pre-tax profits of 10% to £27m in 2012, up from £24.5m the previous year, despite a fall in sales of 1.5%.

In documents filed at Companies’ House the retailer said diesel and energy costs and a competitive market remained “the principal risks and uncertainties to the business”.

The documents show that on 24 December Farmfoods acquired logistics firm Link Logistics. The company also almost doubled its investment in freehold property in 2012 to £14.7m, up from £7.8m in 2011.

Figures from Kantar Worldpanel show Farmfoods increased its sales by 2.3% to £147.7m in the 12 weeks up to 15 April 2013 compared with the same period the previous year, while its market share remained at 0.6%.