A PET food company that sued Nestl is to make further investments in its business following an out-of-court settlement.

Wagg Foods, of Thirsk, North Yorkshire, has recently extended its operations in a £1m investment, which was the final stage of a £3m programme.

The company, which employs 31 people, opened a new factory early last year, but demand from customers has forced it to bring forward investment plans by 12 months.

The settlement, reached with Nestl over one of Wagg's trademarks, is also believed to have helped the business expansion.

Tom Page, sales and marketing director at Wagg, said: "Over the past year, we have seen sales volume up by 25 per cent.

"As works were completed on our factory in February last year, we took the decision to immediately invest a further £1m to extend the unit.

"Now we have dedicated facilities and are well-positioned to grow the business yet further."