EMPLOYEE shareholders at Holland's Pies were celebrating today after their parent company Northern Foods announced increased pre-tax profits of £104.1 million.

On the strength of the buoyant figures, chairman Christopher Haskins unveiled a total dividend for the year of 7.7p per share, an increase of 6.2 per cent.

Baxenden-based Holland's Pies operates an employee share ownership scheme that is popular with its 700-strong workforce.

Northern Foods' profits rise follows a significant surge in demand from Britain's five largest retailers.

Sales to High Street giants, Marks & Spencer, Asda, Tesco, Sainsbury and Safeway, lifted by almost seven per cent in the past year..

Commenting on the results, Haskins said the group's sales had risen by 2.9 per cent to £1,377.9 million, benefiting from a strong relationship with retailers.

"We will continue to progress by adding value through innovation and investment and pursuing high productivity across the business, " he said.

The group said its performance had not been significantly affected by the foot and mouth outbreak, although it thought public confidence had been damaged by the episode. Mr Haskins added: "The process of rebuilding that trust will necessitate an even greater emphasis on quality ."