Northumberland Foods looks to add 20 jobs

by Peter McCusker - 11/02/2010

"A FROZEN food company brought out of administration last year has created 40 jobs, and is looking to add 20 more after launching new lines which have helped boost sales by 40%."

Amble-based Northumberland Foods had a tough 2009 which saw the jobs of its 200 workers saved when the business was bought out by its managers and then a few months later given an emergency loan of £250,0000 from Northumberland County Council.

But hard work by the staff and management team has seen its fortunes improve in recent months and the business is now enjoying annual growth of 40%.

Managing director Peter Kirkham said: “Buying a company out of administration is never easy but the business is now moving in the right direction and has the support of customers, suppliers and staff.

“We have secured the long-term future of the business in Amble, created an additional 40 jobs in the last 12 months, and as we continue on our growth path we should create at least 20 new jobs this year.

“Volumes are 40% up on this time last year and I can see no reason why this will not continue for the rest of 2010.”

If Mr Kirkham’s projections are achieved then Northumberland Foods will achieve sales of £25m this year.

Formerly known as Cheviot Foods the company produces an extensive range of frozen potato and parsnip products for all of the UK’s major food retailers.

In the last year it has introduced 38 new product lines which included two Christmas winners advertised on TV by Tesco, its Goose Fat Roast Potatoes and Honey Roast parsnips.

One result of its improving performance has been a shift to round the clock working, seven days a week.

Mr Kirkham added: “The company’s improvement could not have happened without the staff and we are grateful for their support. Even the office staff have been coming in to help with production on Sunday afternoons.”

Now the company is turning the corner it is also addressing the issue of repaying its loan to Northumberland County Council which had been due at the end of 2009.

“We need finance to support our ongoing growth and we have asked for a delay in repaying the loan until the end of this year.

“Three quarters of our staff work within a five-mile radius, we source 75% of our raw materials from a 50-mile radius and are a key employer in the local area.”

Concerns have been raised by some Northumberland County councillors after it emerged the loan was overdue.

The council has met staff from Northumberland Foods recently and the repayment options will be considered by the authority’s risk appraisal panel in March.

Graham Adams, business development manager at the council, said: “Northumberland County Council has been instrumental in retaining the production facilities and jobs in Amble and will continue to provide the support needed to assist the company to re-establish itself and move forward.

“The council has provided what is expected to be a short-term loan as part of this process.”

Northumberland Foods was created last February after Cheviot Foods went into administration and directors completed a management buyout.

At the time, they received £440,000 from regional development agency One North East and £45,000 from the council to allow the sale to go through.

More Details: http://www.nebusiness.co.uk/business-news/latest-business-news/2010/02/11/northumberland-foods-looks-to-add-20-jobs-51140-25809591/