Mr Kipling’s poor sales overshadow RHM results

DISAPPOINTING sales of Mr Kipling cakes yesterday overshadowed food producer RHM’s first set of results since floating on the London stock market in July.

There was a “significant decline” in demand for traditionally popular Mr Kipling products as turnover in the cakes division fell 13% and half-year profits were slashed from £7.9 million last year to £1 million.

A stronger performance elsewhere, particularly the successful launch of Britain’s first crustless loaf, Hovis Invisible Crust, provided some relief as group turnover was flat and operating profits before restructuring costs lifted nearly 8% to £70.3 million.