ICE Cream maker Richmond Foods has vowed to become the market leader after reporting a 28 per cent rise in profits and another leap in sales.

The business, at Leeming Bar, North Yorkshire, has reaped the benefits of its £9.9m acquisition of Nestle's UK ice cream business, which added Rolo, Smarties and Kit Kat to its brands.

Deals with major supermarket chains to produce own-label lines also boosted group sales, which rose nine per cent in the year to September 28.

As a result, the business reported pre-tax profits for the year of £10.5m on a turnover which was up nine per cent at £127m. Chief executive James Lambert said new branded and own-label products would be launched next year as the company enters the third year of a £27m investment programme.

He said: "We expect to continue to grow market share in a growing market and to make further progress towards our strategic goal of being the number one supplier of ice cream in the UK."

Richmond said growth in the take-home market, which accounted for about 80 per cent of business, had enabled it to capture market share from rivals.

Sales of premium tubs of ice cream grew 89 per cent in the period following the launch of own-label lines with Sainsbury, Asda and the Co-op.

The hottest summer since 1995 pushed up sales of ice lollies by 31 per cent, while the launch of Milky Bar and Smarties Soft helped increase sales of take-home individual ice creams by 50 per cent. The company is targeting a 20 per cent share of the £200m take-home individual ice cream market.

As part of its £27m investment plan, two production lines in North Yorkshire are to come on stream in the new year.

And the £3.9m acquisition of Oldfields, of Sheffield, which supplies bulk ice cream to the retail and food service sectors, was set to boost earnings further.

Anthony Platts, assistant director at Wise Speke's Teesside office, said: "Richmond has spent significantly, but wisely, in upgrading its manufacturing processes to state of the art technology.

"This has enabled efficiency gains to feed through directly to the bottom line. Two new in-house production lines will come on stream this year, leading to an ability to deliver more new innovative products and an even greater turnover."

"The acquisition of Nestle's UK ice cream business last year added high-profile branded premium products. This enables Richmond to win both ways - as well as participating in the premium branded market they are also the leading supplier of supermarket own-label ice cream.

"The company's share of the take-home market has now increased from 24.8 per cent to 27.7 per cent.

"Richmond Foods looks set to overtake Walls to be the number one supplier of ice cream in the UK if they can sustain the current growth in market share."

Shareholders are in line to receive a 33 per cent increase in dividends to 6p per share.