PRE tax losses of £1.4 million have been turned around in a year into profits of almost £300,000 at Malton ready meal manufacturer Pro-Pak Foods.

The company, which was hit by damage to the industry caused by the horsemeat scandal in 2013, has reported pre-tax profits of £286,720 for the year ending September 28, 2014.

The company, which has been part of Tican Group since 2005, and manufactures chilled ready meals for the retail and convenience sectors, saw sales rise from £30.5 million in 2013, to £33.5 million.

Pro-Pak managing director Jon Guest said: "The ready meal market settled down from the turmoil of the horsemeat scandal experienced in the prior year. While turnover levels were not back to pre-2013 levels they are moving in the right direction.

"The erosion of gross profit eased in the year. Stable cost prices and improvement in productivity move the gross profit from 10.2 per cent in 2013 to 14.3 per cent in 2014.

"The company remains well placed to take advantage of the changing retail landscape in the UK and continued need to reduce food waste. Shopping habits continue to shift from infrequent large shopping occasions to more frequent top up shops in smaller format stores.

"Smaller format convenience type stores need additional shelf life to avoid excessive waste, which the company is well placed to provide.

"Elimination of in store waste is another key retailer objective, which the business has been developed to provide via its extended shelf life capabilities."