Northern Foods looks set to deliver full-year profits slightly below a consensus forecast of £86.79 million sterling (€130 million) after sales growth slowed in the fourth quarter.

The company, whose products include Goodfellas pizzas, Fox's biscuits and Donegal Catch, said that it continued to make progress cutting costs and lifting prices, but conceded underlying sales growth had slowed from 3.5 per cent in the third quarter.

It said it would probably end the period to March 31st with underlying growth of about 3 per cent.

Northern, which owns Green Isle in Ireland, stated: "Although this is putting some pressure on profitability in the final quarter, the company expects to report results for 2003/2004 broadly in line with expectations."

It gave no update on its disposal programme.

Analysts interpreted the comments to mean pre-tax profits would be £85-£86million.

The company has been focusing on recouping increased raw material costs through higher prices and efficiency savings after three profits warnings in 18 months. It is also looking to sell non-core businesses.

Ms Nicola Mallard, analyst at Investec, said Northern was probably keeping its powder dry ahead of Ms Patricia O'Driscoll's arrival next week as chief executive. She anticipated significant changes once Ms O'Driscoll was installed. "I suspect so much is going to change that last year should not be the focus for valuing the company," she said.

Ms O'Driscoll replaces Mr Jo Steward, who stepped down in the autumn.

The shares fell 2½p to 160p.