The pie’s the limit as Abbeydale raises £1m for growth

Abbeydale is using part of the funding to move its North Lincolnshire production base into larger premises.

The company has started producing its potato products in a purpose-built food production unit on the Foxhills Industrial Estate, in Scunthorpe.

Abbeydale outgrew its previous site on the Skippingdale Industrial Estate, which is a mile from its new base, due to growing sales, and demand for a wider range of products from customers.

The move follows the company’s acquisition of Pie Toms and its Easi-Peasy brand earlier this year.

The company’s subsidiaries include Saxon Quality Foods and Chapel Foods, which produces the Denby Dale Pies. Abbeydale has raised a package of finance from existing shareholders, which now includes UK Steel Enterprise, after its investment of £250,000.

Loan and mortgage finance has been secured from Lloyds TSB Commercial Banking, with additional finance being provided by Finance Yorkshire and North Lincolnshire Council’s Regional Growth Fund scheme.

UK Steel Enterprise is a wholly owned subsidiary of Tata Steel. It provides business finance from £25,000 to £750,000 to a wide variety of companies, with the aim of encouraging business growth and job creation in areas affected by the steel industry’s decline.

The managing director of Abbeydale Food, Andrew Hayes, said the investment from UK Steel Enterprise will help the company to grow into new markets.

“Our relocation will have a dramatic impact on our growth in the coming years,” he said.

“The purpose-built food production unit will enable us to reach the highest standards of food safety.

“We have a number of major new customers lined up, and they are very excited about our potential to provide them with high quality innovative products.

“Foxhills already has a number of food producers on the estate, so we feel right at home there.

“The relocation will see us investing in new machinery and product lines, which will allow us to enhance our relationship with existing customers and reach new ones.”

Allan Wood, the regional executive for UK Steel Enterprise, said: “Abbeydale Food is an ambitious company with the potential to be a big player in the food market.”

Abbeydale Food Group is made up of several subsidiaries which supply a range of food products, such as potato wedges.

Last year, the Abbeydale Food Group, which has around 60 staff, achieved a turnover of £5.5m.

The villagers of Denby Dale, in West Yorkshire, are famous for baking giant pies to mark major national events.