Losses have widened at foodservice supplier PK Food Concepts despite a healthy jump in revenues as investment in future growth and start-up costs in new operations dragged on the bottom line.

Sales increased 11% at the group to £21.3m in the year to 20 June 2016 thanks to the expansion of the food-to-go division.

PK Food, a former Grocer Fast 50 business, supplies sandwiches, wraps and paninis, as well as pasta sauces, to the education, hospitality, events, travel and healthcare sectors from its two subsidiaries: Tasties of Chester which trades as Street Eats, and Pasta King.

Tasties delivered 16% year-on-year sales growth across its portfolio of products and now accounts for 60% of group revenues, while Pasta King turnover was flat amid pressures in the public sector.

The jump in the top line allowed PK Food to make “considerable investments” in strengthening its management team, core brands and in capital investment, the accounts said.

The group invested £4m in a new sandwich making factory near Heathrow in February for the Tasties subsidiary after the Chester facility reached its capacity.

“The new site helps deliver national distribution capability from state-of-the-art facilities in a strategically important geographic region,” the accounts added. “The year ended with the new facility becoming operational.”

However, higher costs to get the new operations up and running pushed down operating profits by £250k to £500k and pre-tax losses widened from £311k to £544k.