Convenience foods producer Uniq warned investors the foot-and-mouth outbreak would reduce its profits by about £3.5 million.

Uniq, formerly known as Unigate, said the impact of the disease had been most keenly felt at its Malton Foods business, the UK's largest pigmeat producer.

Malton's latest problems come just weeks after the business announced trading had been "difficult" during the past months.

It blamed an outbreak of swine fever in August for a sharp increase in the average price of British pigs.

Uniq, which also announced plans to demerge its Wincanton logistics arm to the City, said its pre-tax profit figure for the year to March 31 was likely to be about £57 million - below City expectations of £62.9 million.

The company said the figures included an expected loss of £12 million at Malton and an operating profit of £47 million at the Uniq convenience foods division.

Wincanton, which is forecast to achieve an operating profit of £31.6 million, is being spun-off to become a separately listed company.

Uniq believes the move will give Wincanton the flexibility to step up its expansion plans.

The company also said the removal of Wincanton would enable Uniq to pursue its strategy for developing its convenience foods business more clearly.

Chas Lawrence, who will continue as chief executive of Wincanton, described the move as "a major step forward".

Shares in Wincanton are expected to commence dealing on May 18, depending on the approval of Uniq shareholders at a special meeting on April 26. They will receive one Uniq share and one Wincanton share for every two Uniq shares held prior to the demerger.

Ian Martin, chairman of Uniq, said: "The demerger of Wincanton marks one of the final stages of the transformation of Uniq into a leading convenience food company."