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Leicester logistics firm Widdowson Group says it will be in a position to return staff salaries to their previous level by 1 December.

The firm had introduced across-the-board pay cuts earlier in the year as part of a £2m cost saving programme: the directors saw their salaries cut by 20%, managers by 10% and other employees  by 5%.

Financial director Arnaud Arhainx says: "We will increase staff salaries to what they were supposed to be six months ago."

The company's contract packing division has also received a boost after becoming the first firm in the UK to achieve a BRC Global Standard for Consumer Products.

This shows that the division has certain standards in place and procedures are consistent; it required an investment of £100,000 for training and refurbishment of a warehouse.

Commercial director John Hawksworth says: "This will open doors for us - it's very important for the business.

"We are very much looking to contract packing as a means of diversifying."

Widdowson has already increased the division's turnover from 2% to 10% of the group's total in the past 18 months.