THE parent company of Malton’s bacon factory has reported its first year of “significant commercial growth” in which turnover surpassed the £500 million milestone.

Announcing its results for the year ending December 31, 2016, Karro Food Group reported a £67 million rise in revenues from 2015, up to £524.7 million.

The business, which supplies British pork into the retail, trade and food service industries, saw EBITDA (earning before interest, tax, depreciation and amortisation) rise to £29 million, up from £26.6 million the year before.

The results came from the fourth and final year under the ownership of private equity firm Endless, which achieved year-on-year growth, before selling the business to CapVest Partners in May this year.

Di Walker, chairwoman of Karro Food Group, said: “Following Karro Food Group’s recent acquisition by CapVest in early 2017 after a strong turnaround, we will continue to build further on our very strong commercial relationships in the UK and globally and this year will see further investment into the business.

“2017 has started well and Karro Food Group is confident of achieving further sustainable growth across the business over the months and years to come.”

In its strategic report, accompanying its accounts, Karro said positive operating cash flow had enabled the company to invest in captial improvement projects across business operations.

It said it had completed a “major investment programme” lowering production costs and increasing product quality through a number of projects including expanding and modernising its slicing and packing facilities, installing a new carcass chiller, and expanding its pig herd.

The report said: “Karro Food Group is well placed to deal with the strong, competitive pressures that characterise the UK pork industry and is preparing for significant further growth in the years to come.

“Karro Food Group is confident that 2017 will bring further improvement in the profitability of the business through revenue growth and further operational efficiencies driven by investment and management initiatives.

“The Group is confident that this further growth will be sustainable as revenue growth is being driven by significant long-term and strategic partnership agreements with a number of customers that are built on strong economic foundations and create long term value for both Karro Food Group and its customers.”

Karro employs more than 3,100 people across seven sites in the UK.