Despite improving sales of ready meals and a strong performance from its frozen division, Northern Foods has reported a drop in sales and profits for the past six months.

The company said its Melt in the Middle Fishcakes, Sweet & Sour Battered Balls and Prawn Primavera were particularly strong performers as ready meals sales rose 4.5% - despite a drop in the ready meals market of 2.5%.

Frozen sales were up by 11.5% to £131.3m. with revenue in the company's chilled division up 4.5% to £239.7m despite a drop in sales of sandwiches and salads.

But while total sales rose by just under 7% to £468.6m, sales volumes fell by 1.8%. And pre-tax profits at the maker of Goodfellas pizza dipped from £20.1m last year to £16.9m for the six months to 27 September.

Chief executive Stefan Barden said Northern was a "new and much stronger company" following cost-cutting moves including the mothballing in August of the company's Fenland Foods factory in Grantham, which had accounted for annual sales of £45m.

The site had supplied Marks & Spencer with all its Italian ready meals but was wound up after Northern refused tough new terms demanded by the retailer under its controversial Project Genesis plan.

 "Over the past two years we have created a better balanced and more resilient business, which is making good progress despite these tough market conditions," said Bardem.

“We have successfully responded to the current economic environment by introducing value product ranges for our customers, including the discounters. And our traditional premium ranges continue to be successful. We have a good proposition across all market segments.”