Sales at dairy company Robert Wiseman Dairies rose by 12% year-on-year in the first quarter of the current financial year, chairman Alan Wiseman said in a statement to the company's AGM.

"We are pleased to report that sales volumes in the first three months of the new financial year are satisfactory and are 12% ahead of last year's first quarter," he said. The company's financial year runs to 2 April.

"As expected, the new business with Tesco started in April and we have been pleased with sales from our new store allocation," he said. "Likewise, 'Pure' the new extended shelf life milk for Tesco launched in store on 6 June and has had a promising start with sales volumes building nicely in line with our expectations."

"We will continue servicing Morrisons until October 2005 as previously announced, and are finalising our plans for reducing costs to mitigate the loss of this contract," he said. Our new depot at Northampton is progressing satisfactorily and is on schedule to be operational by November. Planning for a new dairy in South West England continues and discussions with local authorities regarding planning are ongoing."