A factory which makes some of Britain's favourite foods will stay open despite job losses elsewhere in the company.

The future of the Premier Foods factory in Ashford is said to be safe amid hundreds of jobs being put at risk after the proposed closure to shut one of its sites in Staffordshire was announced today.

The Willesborough site in Kennington Road produces family favourites including Bisto, Paxo, Angel Delight, Birds, Batchelors and McDougalls.

Despite 300 jobs being threatened due to the closure of the Staffordshire factory, the 375 employees at the Ashford site are safe.

This morning, a quarterly results statement was released for Premier Foods which showed Bisto and Paxo, which are manufactured at Ashford, both grew strongly.

Meanwhile, the company said the Knighton manufacturing site in Staffordshire was “marginally” loss-making, therefore it was decided it would close it.

The company is launching a consultation with the 300 workers at the factory under a process that will run to the middle of this year.

But the site, which mainly makes unbranded powdered drinks for the group, is likely to keep operating until 2024 before finally shutting after a phased closure.

Premier Foods said the Knighton factory does not fit in with its “branded growth model strategy and is marginally unprofitable at trading profit”.

It also said it would support its 300 employees at this site throughout the process.

The move is set to cost Premier Foods around £10 million in one-off closure costs, but the company said the closure of the site will boost trading profits in the long run.

The report released today also outlined Premier was offsetting soaring costs with annual price rises and cost savings.

Grocery sales jumped 17.4% over the quarter, with branded sales up 15.5% and it said pricing provided a “significant” boost to revenue growth in the quarter.

But it added “demand was particularly buoyant running into the key festive period”.

Its sweet treats, such as Mr Kipling, lemon and chocolate slices, did not fare so well, with sales down 0.9% as branded sales plunged 10.8%, partially offset by a 22.8% surge in non-branded sales.

The group said sales of Cadbury cakes were hit by unscheduled maintenance at one plant line “which has since been completed and full production now resumed”.

Alex Whitehouse, chief executive of Premier Foods, said: “Input cost inflation remains at elevated levels, and we continue to take action to offset this inflation through a range of measures.

“With strong trading momentum as we enter our final quarter of the year, and with more brand investment and new product launches to come, we are well on track to deliver on expectations for the full year.”