ICE cream business Richmond Foods has axed more than 300 jobs around the country.

The business, which has its headquarters in Leeming Bar, North Yorkshire, made the cuts following the £5.7m acquisition of Nestle's ice cream business in September.

About 230 people lost their jobs with the closure of an administration centre in York and manufacturing facility in Telford, Shropshire. But 30 jobs transferred to Richmond's Leeds facility, where another 30 have been employed to cover the increase in manufacturing.

The group has plans to cut another 120 jobs after deciding to close its ice cream plant in Ashford, Kent, moving the facilities to Leeming Bar, where it is building a 35,000sq ft extension, creating 60 jobs.

The move, which will reduce overheads by £2m a year, is part of Richmond's integration of the former Allied Frozen Foods business, which it acquired in May last year.

That integration has cost Richmond £3.9m so far, a fact reflected in a slump in pre-tax profits for the year to September 30, from £3m last year to just £750,000.

However, stripping out the one-off costs, a surge in turnover by 25 per cent to £88.5m, meant pre-tax profits rose from £3.8m to £5m.

Richmond's improved results come against a backdrop of declining ice cream sales nationwide.

Chief executive James Lambert said a number of factors were to blame for the decline in sales, including two years of below average weather, competition from supermarkets and a wider range of snack products.

Richmond plans to launch a range of new products over the coming months, including a lolly based on an one-eyed frog, a character from the latest Disney film Monsters Inc, and a Willy Wonka ice cream that turns the mouth blue.

Commenting on the results, Mr Lambert said: "This has been a good year for Richmond. We will have rationalised our production sites from six to four by January 2002, but these closures should not affect sales or service and will allow the company to operate more efficiently.

"I remain confident that Richmond will continue to consolidate its position as a major force in the ice cream industry."

Shareholders will receive a total dividend of 3.25p per share, up on last year's payout of 3p.