Inter Link Foods is closing two of its 12 bakeries and opening another to consolidate manufacturing at larger, more-efficient sites.
Production is being transferred from its Dewsbury bakery to the Bradford plant of the recently-acquired Yorkshire Cottage Bakeries, while activities at the Crossfield plant in Blackburn will be switched to a new, highly- automated facility nearby, said chief executive Paul Griffiths.
"The Crossfield staff has switched to the new Blackburn site, which becomes operational this month. We're in consultation with staff at Dewsbury to encourage as many as possible to transfer to Bradford."
The second largest cake supplier in the UK behind Manor Bakeries, Inter Link has grown rapidly through a series of acquisitions over the last decade. However, organic growth has also been strong, with like-for-like sales in the year to May 7 topping 14%, more than double that of the market, which is growing at 6%, claimed Griffiths. Further deals were still on the cards. "It would be pretty unusual for us not to buy something in a trading year."
While sugar prices would come down as European subsidies were reformed, sugar was a relatively small percentage of the selling price of Inter Link's products, said Griffiths, who added that other input costs were rising fast.
The firm increased pre-tax profit by 15% to £4.5m on sales up 41% to £98.1m in the year to May 7.