Retailer Inter Link Foods has issued a warning to investors that it is not expecting to meet profit targets for the year ending April 2007.
The company, which downgraded expectations last month, said even those revised market figures now look unlikely to be met.
As a result Inter Link says it expects to make an operating loss and is anticipating higher-than-expected exceptional costs for the year.
In a trading statement the firm also revealed losses would mean borrowing had been higher than previously anticipated.
"The company has been engaged in an open and constructive dialogue with its bank, which remains supportive whilst the company can demonstrate that the situation is improving," the firm said.
Inter Link says it is now looking to strengthen its executive team and add to the non-executive members on its board.
There was some positive news for the cake maker, however, with its Soreen brand continuing to perform well.
And, even though margins and volumes were down on recent estimates, Inter Link said it remained confident that 2007/08 would be "materially better than the current year".
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