Big Food Group, the parent of UK high street food retailer Iceland, has reported a disappointing set of quarterly sales figures.

The 760-strong Iceland chain reported sales down 7.7% in the 13 weeks to the end of September, prompting the group’s share price to fall to a record low of £0.25 (US$0.39). This is a further blow to investors who saw shares rise to £3.40 just two years ago.

In a trading update, the group said: “Iceland continues to experience weakness in its sales performance whilst action has successfully been taken to restore gross margins.”

Chief executive Bill Grimsey, who joined Big Food Group 18 months ago when founder Malcolm Walker parted company with the group, insisted shareholders should be happy because margins have been restored and he is on schedule with “the implementation of strategic initiatives,” reported the Guardian.

With Iceland accounting for just 30% of Big Food Group’s turnover, Grimsey was keen to stress that other divisions –the Booker cash and carry chain and catering supplies firm Woodward Foodservice – are performing well.

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Like-for-like sales at Booker were ahead 3.2% excluding tobacco, which eased off 1.9% and the catering supplies business outstripped forecasts with a 13.5% upturn.

To view Big Food Group’s Q2 trading statement click here.