Robert Wiseman Dairies said it has begun to successfully pass through higher milk costs to its customers.

The company said turnover for the year ending 29 March is in line with forecasts. Shares were up 3%, or 12p in early trade to 440 pence.

Production is increasing steadily at the new dairy in Bridgwater, Somerset, but there would be an extra cost of £1 million in the first quarter due to delays.

Management said it intends to retain its distribution operations at the Pensilva dairy in Cornwall.