Finsbury Food, which makes speciality cakes, muffins and breads, said its Memory Lane subsidiary, saw interim sales growth of 24% boosted by its Christmas product lines.

For the six months to December 31 sales came in at £27.7m with £22.9m from Memory Lane as festive product lines sales doubled.

However, labour difficulties at Memory Lane’s Cardiff facility and raw material cost pressures resulted in a post-tax loss of £0.2m for the same period.

Finsbury said these issues have now been addressed and would not detract from the underlying favourable outlook for the group.

In September the group secured a contract for the exclusive use of the Nestlé confectionery brands in the UK cake market. Distributed through the multiple and foodservice channels the range now includes 12 lines.