Bakery Services has revealed "disappointing" results, with its six-month statement to 30 September 2006 showing pre-tax losses of over £80,000.

Bakery Services operates the in-store bakeries business Inbake at Co-op shops as well as Don Millers’ franchise and company-managed cafés.

Turnover was up from £1.588m (2005) to £1.598m (2006). But pre-tax losses were up from £57,814 (2005) to £83,679 (2006).

Bakery Services said Inbake’s in-store concession business performed satisfactorily and gross margin improved slightly from 37.5% to 37.7%.

Following the closure of the units at Loughborough and Birmingham, Don Millers only has one managed unit in the Victoria Centre, Nottingham.

"The overall results for the period are disappointing," said Richard Worthington, non-executive chairman and financial director.

"However, the loss for the period includes £54,882 relating to the managed unit at the Victoria Centre, Nottingham (closed for refitting during part of the period) and £33,154 relating to rentals and other costs for the closed unit at Temple Row, Birmingham.

"Without these costs the group would have been close to breaking even."