Premier Foods is making “significant progress” in clearing up the aftermath of February’s Sudan 1 product recall.

Releasing its interim results for the six months to July 2, the group, which was at the centre of the product recall in February this year, said that it had conducted a comprehensive ingredient risk review which resulted in the introduction of an enhanced testing regime.

It also said that it has changed the sourcing of some of its key raw materials.

Premier added: “Our insurers have appointed loss adjusters who are handling all claims, some of which have now been determined and paid. To date, all settlements have been in line with or below our initial estimates.”

Premier said that grocery sales had increased to £350.9m from 336.9m the year before, although total group sales had decreased by 3.9% to £409.2m due to lower market prices for potatoes.

Trading profit also increased by 18.8% to £45.6m, while like-for-like operating profit increased by 5.4%.

The group also announced that it has acquired potato and fresh produce supply business Gedney’s for £5.5m, which Premier said would be integrated into its existing potato supply business.