BRITAIN'S largest ice cream maker has predicted an eight per cent rise in profits - despite falling sales and increased competition.

In a trading statement, Richmond Foods, which makes Nestle-branded products and is based near Northallerton, North Yorkshire, said it expected pre-tax profits for the 53 weeks ending October 2 to be about £14.4m.

Sales have fallen by two per cent to between £141m and £142m, with its share in the total ice cream market dropping from 36.5 per cent to 34.8 per cent because of increased competition.

Financial director Andy Finneran said that while the number of people buying ice cream from supermarkets had increased slightly, the number of "impulse buys" had fallen.

"Impulse buys are basically when people buy an ice cream on a stick from a shop, particularly when they are on a trip out or by the seaside, for example," he said.

"The number of sales through impulse buys has been declining across the industry for the past 15 years. It is also weather-related and it could be that when petrol prices went up in August, not as many people travelled away to leisure events."

He said Richmond Foods had re-launched a number of its Nestle products, including Yorkie ice creams, and introduced lines in an attempt to beat increased competition from other brands.

The company has seen success with its Skinny Cow range of ice creams, with sales increasing from £1.3m last year to £6m this year.

"Our Skinny Cow range is a healthy alternative to other ice creams. It is low in fat and calories, yet still tastes great and has proved really popular," said Mr Finneran.

"In 2004, we just sold the products through Asda, but it has rolled out over the year into all the supermarkets. We just used to do the ice creams on a stick, whereas now you can get it in a cone and in a tub."

Richmond employs about 950 people at three UK sites - at Leeming Bar, near Northallerton, which is Europe's largest ice cream plant, Crossgates, near Leeds, and Wigan.

Last week, the company released a profit statement in advance of yesterday's announcement following vol-atility in its share price, which had fallen 16 per cent.

Full preliminary results for the year will be made on November 29.