DAIRY farmers co-operative Zenith has reported a modest profit in its first set of accounts since it was set up two years ago.

Zenith, which markets nearly 1.4 billion litres of milk annually on behalf of more 3,500 farmers across the North of England, recorded a profit of £133,000.

This takes into account the past 17 months of trading, up to March 31 this year.

The company, which employs 34 staff, also reported a turnover of £241.4m.

Finance director Tony Kneafsey said: "We have established a solid foundation for future growth and security.

"This, together with our track record of winning premium business, demonstrates that we are right on course."

Zenith has more than 100 customers on its books, including Cadbury and Eden Vale.

Its directors receive no dividend, bonus or profit share allocation.

Zenith has previously launched an enhanced pricing package for its members with the introduction of volume bonuses, lower charges and flat rate monthly premiums.

It has also been able to review all its transport operations and complete a retendering process, which it says will result in major cost savings.