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.

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.

British food producer RHM was valued at £958m (€1.4bn) today as the City clamoured for a slice of the maker of Hovis bread, Paxo stuffing and Mr Kipling cakes.

The maker of Mr Kipling cakes and Paxo stuffing kicked off plans today for a flotation that could value it at more than £1bn (€1.5bn).