GREGGS, the UK’s biggest bakery chain, blamed the “torrid, hot weather” yesterday for stifling customers’ appetite for sausage rolls.

The group, which also trades as Bakers Oven, reported a slowdown in underlying sales for the seven weeks to August 2 and said that profits were down on the same period last year. Like-for-like sales rose 1.5 per cent in July and August, against a 4.7 per cent rise for the six months to June 14.

Greggs said, however, it was not worried by the slower pace of sales. Malcolm Simpson, the financial director, said: “If it is too hot, people do not buy as many products straight out of the oven and tend to not eat at lunchtime.”

But investors remained unconvinced, sending the shares down 6 per cent to £30.10 before recovering to £30.12½.

The update for the second half came as the Tyneside-based maker of sandwiches, savouries and bakery products unveiled a 13 per cent rise in interim pre-tax profits to a record of £12.3 million. Turnover rose 9 per cent to £201 million.

The group also reported “reasonable growth” after a slow start at its two pilot outlets in Belgium, with the Leuven branch experiencing a 60 per cent increase in turnover since it opened and the Antwerp store unveiling a doubling of turnover.

Mr Simpson identified the Netherlands, northern France and Germany as potential markets in its European expansion strategy. But he said that the group first wanted to establish about 20 stores in Belgium over the next three to four years before branching out across Europe.

Greggs said that in the first half it had added a total of nine stores to the chain, raising the total to 1,211 outlets. The openings in the Midlands, the South West and the South of England mean that Greggs will attain its goal of 1,700 outlets across the UK by 2010.