MEADOW Foods, which buys its milk from 270 Cumbrian dairy farmers, has reported a 13 per cent increase in turnover to £340.9m.

Operating profit was £9.51 million - up 4.97 per cent, for its last financial year.

The private company, based in Chester, has also announced that it has eliminated net borrowings while committing £2.6m to capital investment projects in the coming year.

The investments are designed to further increase capacity and efficiencies at its manufacturing facilities.

Simon Chantler, executive chairman, said: “While the wider economic conditions remain challenging, Meadow Foods has continued to deliver a consistent performance.

“These investments will bring further sustainable growth.”