Shares in Premier Foods rose 10.5p to finish on 251p yesterday despite the release of mixed first-half results from the food manufacturer.

Premier, which makes brands including Branston Pickle, Oxo stock cubes and Crosse & Blackwell cooking sauces, reported a 49.6% drop in half-year pre-tax profit to £13.9m on sales up 145.3% at £899.1m. It also warned escalating wheat prices could force further price rises.

Analysts welcomed news that Premier had been able to pass on rising costs and that it still expected to meet its full-year forecasts.

“Although Premier Foods' stock performance has been poor in recent months, the company's prospects appear bright,” said analysts at Panmure Gordon.