The cash will be spent on a new soup production plant, said md Jonathan Skofic, a former Cott Beverages executive brought in last summer to run TSC following a £24m buyout led by the management team with support from Key Capital Partners (KCP) and Yorkshire Bank.
The investment has been funded out of cashflow and by refinancing an existing £700,000 facility with Yorkshire Bank.
Sales since the buyout have increased dramatically and will "approach £40m" in 2010 (compared with £35m in 2009), said Skofic, who hopes to create more than 50 jobs over the next three months.
“The period following the buyout has been very exciting, with sales growth being achieved among both our supermarket and restaurant and pub customers.
“KCP has proved to be a very supportive investor, working in close partnership with us to deliver our ambitious plans for the business.”
TSC supplies chilled soups, sauces, marinades, salsas, pestos, risottos and recipe dishes to retailers and caterers. Its Glorious! soups and sauces brand, which is endorsed by celebrity chef Marco Pierre White, now has listings in Asda, Morrisons, Booths, Sainsbury's and Nisa Today's.