Mr Kipling owner signals turnaround at cakes arm

Mr Kipling owner RHM today said action to reverse the decline in demand for its cakes had resulted in a much stronger performance in the second half of the financial year.

The British food producer launched a range of additive-free low-fat cakes in January in a bid to overcome plummeting sales as the trend towards healthier eating continues.

A positive response to the Delightful range combined with “an excellent performance” in its bakeries division – driven by the strength of the Hovis brand – meant the firm expected operating profits for the year to April 29 to be above £170m (€245.6m). This compared to £158m (€228.3m) the year before.

Chief executive Ian McMahon said: “Much progress remains to be made at Manor Bakeries, but at this early stage we are encouraged by the response to the actions we have taken to improve cakes’ performance.”