Bakery and sandwich shop chain Greggs said full-year pre-tax profit rose 10.4% but warned that the sandwich market may be slowing and that it faced strong competition from new operators.

For the year ended December 27, the 1,200-strong chain posted pre-tax profit of £40.5m. Sales rose 8.1% to £457m, with like-for-like sales growth up 3.3%.

Greggs chairman Derek Netherton stressed that the company was well equipped to face competition and would “deliver another year of progress”.