Carr’s Group has seen volumes in its food division up ahead of last year, despite the “challenging” market.

The company, which supplies flour to major plant bread firms, said the food sector continued to “perform well” in the 19-week period ending 11 July 2015.

It also said its new “state-of-the-art” flour mill in Kirkcaldy had improved the efficiency of its operations.

Carr’s, formally known as Carr’s Milling Industries, has now gained new customers across the division in the period.  

It stated: The retail market in which the division operates remains challenging, with the multiples rationalising their sliced bread offering and consumer shopping habits continuing to change.

“However, previous investment in the division’s infrastructure ensures that Carr’s remains well-placed to adapt to changing retailer requirements and consumer demands.”

Tim Davies, chief executive, said: “Despite Carr’s continuing to operate in mixed market conditions, we remain confident that the group will meet the board’s expectations for the full year. This confidence is due to the breadth of the group’s geographical footprint and its ongoing commitment to, and investment in, assets and innovation.”

Overall trading continues to be in line with the board’s expectations for the full year.

The group expects to issue its preliminary results for the year ending 29 August 2015 on 9 November 2015.