Icelandic supplier Bakkavor, which now owns UK bakery businesses including New Primebake, said last week that it planned to continue to "lead UK consolidation".

The company, which posted its annual results for 2006 last week, said its UK businesses were now worth 92% of the Group’s £1.2bn sales, on a pro forma basis. It made three bakery acquisitions in the UK last year: Laurens Patisseries, Rye Valley Patisseries and New Primebake.

UK subsidiaries, which also include the former Geest business, saw strong growth, but the trading environment was under pressure from rising inflation and higher interest rates, Bakkavor said.

It said its future plans were to improve efficiencies of its existing operations and develop in line with trends, including natural ingredients, organic, ethical, and emerging cuisines rising from travel and migration.

Bakkavor, has its headquarters in Iceland and runs 21 manufacturing sites in the UK. Its operating profit was up 71% to £113.9 million in 2006.

Bakkavor makes more than 4,700 products in 17 product categories ranging from pizza, ready meals and salads to dips, dressings, soups and desserts.