Baxter recorded a GBP7.1m (US$11.1m) profit before tax for the year

Baxter recorded a GBP7.1m (US$11.1m) profit before tax for the year

UK soup maker Baxters Food Group has booked an increase in annual profits and said it plans to grow further through acquisitions.

The company recorded a GBP7.1m (US$11.1m) profit before tax for the year ended 28 May, a 5.9% increase on the previous year. The company said the figure reflects a "solid financial performance in a tough economic environment".

Turnover, however, contracted slightly, dipping 2.5% to GBP125.8m, which the company blamed on a "UK market where the practice of low margin promotional activity shows no sign of easing".

Nonetheless, Baxters chairman Audrey Baxter said the company will look to achieve further growth in the business through acquisitions.

"The recently completed acquisition of Fray Bentos demonstrates our ability to acquire one of the UK's best known heritage brands. We are currently considering a number of other options."

She added: "Although challenges remain we are well placed to deal with them and have implemented a robust strategy for growth. We believe strongly in our customers, consumers and product portfolio and look forward to the challenges and opportunities that lie ahead."