Fresh food manufacturer Bakkavor has seen revenues rise in its half year results, despite a challenging market.

Like-for-like revenue increased 2% to £851.8m for the 26 weeks ended 27 June 2015.

The company said it has seen “strong revenue growth in International business offset by challenging market conditions in the UK.”

Despite this, Agust Gudmundsson, chief executive officer said he expected the challenging trade environment to continue due to a combination of price deflation and a highly competitive grocery market.

He said: “We remain focused on our core strategic objectives of close partnering with our customers and selective investment to drive growth, technical excellence and product innovation. This strategy, combined with our leading market position and improved financial strength is a strong platform and gives us confidence for the period ahead.”

The company, which produces pizza, desserts and sandwich products finalised the sale of its Italian pizza manufacturing business to Dreamfood in July this year.