Carr’s Milling Industries said last week that profitability in its flour business was "unsatisfactory" despite two price increases since August.

In an interim management statement put out to coincide with its Annual General Meeting it said further price increases would be useful although these would be dictated by whether bakers were successful in getting further bread price increases.

Despite claiming "strong trading to date" in its business overall, Carr’s said that there was a "risk to flour profits" and that the outcome for the year to 30 August 2008 would be influenced by the price of milling wheat for the month of August, which is currently difficult to predict.

Group sales reached £24.6 million last year, up from £19.2m.