Convenience foods group Uniq has announced plans to close its desserts factory in Paignton, Devon.

The closure was needed “in order to recover from the current loss-making position and generate profitable growth for the long term”. Production would be transferred to its other sites in Evercreech and Minsterley.

It has also secured a long-term contract to supply Marks & Spencer with desserts and fish.

Sales for the first three months of 2008 were 0.8% up on last year, Uniq added, with UK sales up 0.6%, but it had "suffered a lag in inflation recovery so far in 2008".