Cake sales boost for Inter Link

By NICK GOODWAY FOR MAILONLINE
Updated:

 

CAKES are back in fashion, the country's second-largest baker confirmed today.

Inter Link Foods, maker of Soreen malt loaf and supplier to all Britain's big supermarkets, revealed that sales for the first two months of its financial year were ahead of its budgeted targets.

Earlier this year, the group saw more than a quarter of its value wiped off the stock market when it issued its first-ever profits warning on the back of disappointing sales in April. Now it appears to be starting the long climb back.

Chairman Alwin Thompson said: 'As a supplier to all UK retailers, we recognise that to stay ahead we must constantly strive to improve efficiency and establish new ways to maintain a lower cost base.'

To that end, the group has closed or is closing a number of its smaller bakeries and transferring production to a modern bakery in Blackburn, Lancashire, which opened last summer.

The UK cake market is still growing at 6% a year, and Inter Link said the healthy eating category is growing much faster than that.

Profits before the exceptional costs of closing bakeries rose by 21% to £7.1m on sales up by 33% at £130m. The dividend rises 16% to 7.5p.

Thompson said the group expected capital spending to come down to more modest levels after several years of heavy investment which he expected to bring 'considerable future benefits'.

He also forecast that with only 166 shopping days until Christmas, Inter Link will increase the number of mince pies it sells from 120m to 140m. The group is also launching its first push into the puddings market using the Mrs Peek brand.

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