Greencore, the convenience food group selling almost exclusively into the UK market, reported a more than doubling of profits to £72.2m (€83.5m) for the year to the end of September.

However, the annual report sounded a note of caution about the outlook for inflation and how it might hurt the company’s profits in the coming year. It noted that consumers had not yet absorbed the full impact of cost-of-living factors and the recessionary environment in the UK.

The company expressed confidence that its strong balance sheet and efficiency and productivity gains achieved under its unimaginatively-named “Better Greencore” programme would support progress in the coming years.

Investors seem to be concentrating on the warnings for the year ahead, with shares in Greencore dropping 8% in the day after the results were announced. The company’s share price is down more than 50% since the start of the year.