Food group Greencore recorded group revenue of over £320m sterling in the 13 weeks to the end of December.

The company said that was an increase of 7.2% on the previous year.

In an interim management statement issued in advance of its AGM in Dublin, Greencore said the year got off to a good start and it is on track to deliver financial results in line with expectations.

The company said its convenience foods division saw revenues rise by 6.9% to £305.6m.

UK revenues increased by 7.2% in the three month period. While the overall grocery retail environment remains challenging, Greencore said that the small store format continues to see strong growth.

In the US, Greencore's constant currency revenue jumped by over 26% due to the start of the Starbucks supply agreement.

Greencore said its ingredients and property division, which now represents less than 5% of its total activity, posted revenues of £14.9m, up 13.7% on the previous year.

"The group remains well positioned as a focused and disciplined convenience foods business in its chosen markets of the UK and US," Greencore said in today's trading statement.

"Economic conditions in the UK are steadily improving. While this improvement has yet to be seen in larger grocery stores, we are seeing more buoyant activity in small stores and in product categories which perform well in these stores, such as food to go," the statement added.