Kerrs Bakery is celebrating its tenth anniversary by opening a new £1m factory in Motherwell, with annual turnover predicted to reach more than £2m this year.

The wholesale business - one of the main producers of Caramel Cake in Scotland - manufactures a wide range of long-life handmade cakes, as well as short-life cakes with a 12-14-day shelf life.

The new factory is three times the size of the old one and Kerrs expect to hire an additional 13 staff, to join its existing team of 20, before the summer.

Founder Karen Murray opened a small shop in Armadale, West Lothian, 10 years ago with start-up help from the Prince’s Scottish Youth Business Trust, to make caramel cake.

Products are distributed directly to small grocers, coffee shops, delicatessens and supermarkets, mainly in Scotland, and Murray has plans to expand the retail supply. “We have done some small orders for Scottish supermarkets and would like to develop that this year,” she said.