TYPHOO Tea's pre-tax losses climbed from £6m to more than £10m last year.

According to fhe latest figure filed at Companies House, the loss includes £2.5m losses on financial derivatives and foreign currency loans.

Turnover also dipped sharply to £56.9m, from £71.2m last time.

However, market share grew 8% in the UK and 14% internationally.

Rising raw material costs hit the business, which endeavoured to make cost savings.

Typhoo is the third- biggest brand in the UK, behind Tetley and PG Tips, and has been manufactured at the factory in Pasture Road, Moreton, since 1978. There are currently 344 people employed on the site, which was sold by Premier Foods to the Indian Apeejay Group for £80m, in 2005.

In the director's report filed at Companies House in March, it states that the drop in sales reflected a reduction in producing high volumes of low margin products.

"We anticipate that the levels of competitive activity in 2009/10 will remain as high as in the year just past.

“In line with our strategy, we will invest in relevant sales and marketing support to grow our brands and we will continue working closely with our own brand customers to ensure they have a competitive offering.

"We have grown our market share during the fiscal year through a programme of consumer and customer activities. Total company share grew by 8%.

"Cost is an ongoing focus for the business. Packaging cost savings and improved factory efficiencies have been achieved. Headcount has been reduced through restructuring and we anticipate further cost savings in the year ahead." Staff numbers fell from 362 to 344.

Brands include Typhoo, Ridgways, Lift, London Fruit & herb and Red Mountain coffee.

BARRY TURNBULL