The maker of Kipling Cakes, Bisto gravy and Oxo cubes reported higher group sales in the first quarter as its Mr Kipling cakes and Batchelors brands benefited from a TV advertising push.

Mr Kipling and Bisto owner Premier Foods has entered into a "relationship agreement" with Japanese noodle maker Nissin, just weeks after rejecting a takeover by US giant McCormick.

Spice manufacturer McCormick has abandoned takeover talks with Premier Foods, saying the UK maker of ‘Mr Kipling’ cakes and ‘Bisto’ gravy demanded too high a price. Premier Foods shares plunged as much as 31%.

The heat has been turned up in the bid battle for Mr Kipling cakes firm Premier Foods after Schwartz spice owner McCormick & Company tabled its third approach for the business, worth £537 million.

Mr Kipling cakes firm Premier Foods revealed it has snubbed a takeover approach from an American suitor and announced a tie-up with noodle-giant Nissin Foods.