Northern Foods axes Fox's jobs as it turns to robots
Fox's owners Northern Foods has confirmed that 300 jobs at its biscuit factories will go as the company invests in robot production lines.
Cunning Fox: The biscuit manufaturer aims to cut costs.
Northern Foods is spending £26.5m on introducing robot technology at plants in Batley in West Yorkshire, Kirkham in Lancashire and Uttoxeter, Staffordshire.
Leeds-based Northern said the new equipment will lead to the loss of about 300 jobs at Batley and Uttoxeter although about 80 positions are being created at Kirkham.
The robotic technology will include new machines to provide packing functions at the factories.
Despite the job cuts Northern Foods said that the cull has been less severe than expected.
It said that original investment proposals were for a £50m hi-tech facility, which would have led to the closure of one of the two sites and the loss of up to 1,000 jobs.
Northern has shelved those plans due to the rising cost of investment linked to unfavourable exchanges rates and an uncertain economic environment.
The announcement came as Northern, which also makes Goodfella's and San Marco pizza, announced underlying pre-tax profits of £12.9m for the half-year to September 26, up from £12.7m a year earlier.
Including one-off costs, the firm posted profits of £12.9m, up from a loss of £17.1m a year ago when it was hit by large restructuring and tax charges.
Like-for-like sales rose 2.9% driven by growth at its chilled and bakery divisions.
Total sales fell to £466.9m from £468.6m, reflecting the mothballing of its Fenland Foods ready meals facility in Grantham.
Stefan Barden, chief executive, said: 'Market conditions remain competitive but at this stage of the year, our sales and profit expectations for the current financial year remain unchanged, and in line with market expectations.'
Shares in the company, which fell sharply last month after a disappointing trading update, gained 2% today.
Nicolas Ceron, analyst at Numis, said the half-year results were slightly ahead of expectations but added that profitable growth 'remains a challenge'.
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