Shares in Northern Foods fell 0.5p to finish on 131.5p yesterday following mixed full-year results from the food manufacturer.

Full-year pre-tax profit rose 21.2% to £40m on sales up 3% at £888.5m but CEO Stefan Barden warned that challenges remained in the biscuits market where Northern Foods was 'experiencing a sustained increase in input costs”.

“Though the results are better than we thought, there are still substantial swings in the divisional performances that give little comfort to any forecasting,” said analysts at Credit Suisse.