Inter Link said it was set for solid growth in 2007, after admitting it had "bitten off more than it could chew" in 2006.

Speaking as it released its interim results for the six months ended November 4, chief executive Chris Thompson told British Baker that the company had made "important strategic moves" in overhauling its infrastructure in 2006.

These included moving to central distribution, doubling capacity at the Soreen plant and preparing for the closure of its Hoppers Bakery site in Herne Bay, scheduled for February.

However, Inter Link was now in a solid position and set for organic growth and a possible acquisition later in the year, he said. Its plans for 2007 include relaunching the Mrs Peaks Christmas pudding brand in time for Christmas and expanding the Polish factory from 70,000sq ft to 85,000sq ft.

An acquisition could be on the cards after Inter Link’s share price had recovered from a "rocky ride" in 2006, he said.

Thompson also suggested that there may be further opportunities for consolidation in the UK during the year, although the company had no immediate plans for closures.

Inter Link said sales were down 6.8% to £62.6m in the six months to November 4, and pre-tax profit was down 47.8% to £1.93m.