The possible closure of a Sussex factory has been temporarily lifted thanks to the success of a new loyalty card scheme.

Smart card firm ID Data said it was delaying a plant closure after the launch of the Nectar card.

The Corby-based company, which has a plant at Lewes, recently won a £4.4 million deal to supply Nectar cards to Sainsbury's, Barclaycard, BP and Debenhams.

It had been due to announce in September which of its three sites, in Corby, Lewes and Coventry, would face closure as part of a cost-cutting drive.

But chief executive Peter Cox said he was now reviewing the decision, adding: "The Nectar card has brought a lot of work into our business."

ID Data has also experienced continuing demand for its loyalty cards from retail clients such as Tesco and the AA.

Turnover in the six months to September 30 increased by 45 per cent from £7.2 million last year to £10.4 million.

The growth in the first-half cut interim pre-tax losses by more than half to £1.3 million compared with £2.8 million for the same period last year.

Mr Cox said it still made sense to close a plant to reduce operating costs but would not clarify when a decision might now be made.

He said staff at the site eventually shut down would be offered the chance to relocate to one of the remaining factories.

ID, which employs 269 people in the UK, announced earlier this year its intention to make 45 people redundant in a bid to save £1.1 million.

Despite the success in the retail sector, the telecommunications market has remained depressed with operators cutting back on investment.