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Food manufacturer Northern Foods has announced its profits for the year are on track despite declining sales in frozen and bakery products.

The makers of Goodfella's pizzas revealed that underlying continuing revenue in the bakery division declined by 2.6 per cent in the fourth quarter - 4.6 per cent in the year to date – while sales of frozen foods also reduced.

In the firm's trading update, it announced that frozen pastry and meat grills "have continued to disappoint, reflecting the impact of this year's mild weather".

Northern Food also said that good progress is being made in reducing overhead costs.

However the Leeds-based firm announced that pre-tax profits remain in line with expectations.

Stefan Barden, Northern Foods chief executive, described the year as one of transition saying: "The group has been successfully refocused and we enter the new financial year with a sound balance sheet and good opportunities to grow in our chosen markets.

"We will continue to focus on improving operational performance and in ensuring that we maintain the momentum we have developed in our chilled division," he added.

The chilled division saw underlying revenue rise by 4.5 per cent in the fourth quarter – 7.2 per cent in the year to date.

Full year results for the company are expected to be announced on May 30th 2007.