Cake manufacturer Inter Link Foods has warned it will not meet full-year market forecasts.

“Inter Link Foods announces today that it will not now meet current market forecasts for the financial year ending 5 May 2007,” the group said in a trading update to the City.

“Despite expecting a significantly positive EBITA, the company will make a loss after exceptional costs, but before goodwill amortisation,” it added.

Last month, Inter Link Foods reported a 47.8% decrease in half-year pre-tax profit to £1.93m on sales down 6.8% at £62.6m. It blamed unseasonably warm weather for the drop in profit.

“The company expects that 2007/8 will be materially better than the current year,” it added.