BLACKBURN-BASED Interlink Foods has announced plans to raise £8million to finance its bid to become the second-biggest cake-maker in Britain.

The company, founded just 10 years ago, supplies cakes and pastry products to most of the big supermarket chains who sell them under their own brand names.

Inter Link - the Company of the Year in the Lancashire Evening Telegraph Business Awards 2003 - now employs more than 1,000 people at its bakeries throughout the UK.

Chairman Alwin Thompson said the company was now targeting the £30million of 'private label' business that was being abandoned by RHM, the company behind Mr Kipling cakes.

RHM, the undisputed market leader for cakes, has already announced that it wants to concentrate on its own brands rather than baking for the big retail groups.

In a statement to the Stock Exchange, the company said there was a limited number of businesses with the capability to supply these products.

"The directors believe that Inter Link Foods is in a strong position to win a large proportion of such business."

Mr Thompson said the company was planning to place additional shares in the business through institutional investors.

"I am delighted by the reception that we have received to our plans to expand Inter Link Foods," he said.

"We have stated our objective of becoming the largest private label cake supplier in the UK and the second largest cake supplier in the UK and we believe this funding will provide us with the increased flexibility to take advantage of the changes that are currently taking place in the market."