THE FUTURE of a Shropshire dessert factory which employs more than 700 staff looks secure following a review.

Bosses at Uniq, which has a site in Minsterley, Shrewsbury, announced a review of its desserts operations in the county earlier this year after losing a £10 million contract.

Staff at the site produce more than 100 million chilled pot desserts each year.

Chiefs have concluded the Minsterley site is secure for the short term at least, with “ambitious growth plans” set out for Cadbury desserts made there.

Uniq said its plans justify the £48 million carrying value of the site – but added the new plans were “dependent on securing support from the firm’s customers”.

Bosses say the firm must also reduce the cost of overheads in its everyday desserts division.

The announcement comes as the food supplier posted a return to underlying profits, thanks in part to a surge in sandwich sales.

The group, which also makes salads and desserts for companies including Costa Coffee and The Co-operative Group, made profits of £4.1 million in 2010, compared to losses of £1.9 million the previous year.

The desserts division reduced its losses by seven per cent to £2.7 million.

Company chairman John Warren said: “I would like to congratulate all management and staff at Uniq for their unstinting efforts, which we fully expect to maintain the improved performance of the company despite the challenging environment.

“Furthermore, the comprehensive review of our desserts business, announced in January, has been completed and a plan has been approved that is expected to deliver sustainable improvement in profitability.”

Uniq’s prospects have been boosted by its recent tackling of a £436 million hole in its pension scheme, which was a legacy of its previous incarnation as dairy giant Unigate, with former milkmen among the 21,000 member scheme.

In trading terms, it has benefited from an expanded contract with M&S to produce nearly two-thirds of its sandwiches, including the Simply Fuller Longer and the relaunched Gastropub sandwich-in-a-bag ranges.

By Thom Kennedy