ONE of York's largest employers Nestle UK has seen almost a 400 per cent rise in pre-tax profits having surpassed the £100 million mark.

The food and drinks giant, which employs around 2,155 people at its confectionery factory and associated offices and functions in Haxby Road, has reported pre-tax profits of £124.9 million for the year ending December 31, 2014.

The figure is up from £25.2 million in the previous financial year, and a substantial increase from the £11.9 million pre-tax loss reported in 2012.

Profits for the year after tax amounted to £121.3 million, up from £22.2 million in 2013, despite a 13 per cent decrease in turnover, down from £1.75 billion to £1.73 billion.

The group said its 2014 results included exceptional costs relating to the restructuring of the business of more than £5m, compared with £2.3m in 2013.

In the group's strategic report, supporting the full year results, group finance director Marc Seiler said: "The management of the business of the company, and the execution of its strategy are subject to a number of risks and uncertainties, including a difficult economic environment, a strong competitive environment, current fluctuations, further trade consolidation, produce innovation, employee retention and volatility in input costs.

"The directors of the company are aware of these risks and strategy decisions are made to manage these risks appropriately."

Cereal Partners UK, which manufactures Nestlé's breakfast cereals including Curiously Cinnamon and Shreddies, reported revenues of £284.5 million for the year, down from £296.7 million the year before, which saw pre-tax profits fall from £21.16 million to £21.09 million.

The results were published just days after Nestlé UK advised its employees of a proposal to close its defined benefit pension scheme due to cost and risk implications.

Nestle said it is “with regret” that the proposals are being put forward, and that the costs and risks of providing a defined benefit scheme have “continued to increase substantially” in recent years.

The group's results show Nestle UK made contribution totally £113.3 million to the pension scheme in the last financial year, compared to £92.3 million the previous year.