SHARES in Blackburn bakery group Inter Link Foods have soared by more than 25 per cent in the past month, valuing the business at more than £25 million.

The steep rise to £3.65 per share has taken company bosses by surprise and managing director Alwin Thompson admitted he was mystified.

"We have had no major developments and there have been no announcements," he said.

"Our shares have been tipped in a couple of specialist investor magazines and we do seem to be attracting a lot of interest from private investors."

Inter Link was floated on the Alternative Investment Market of the Stock Exchange in 1998 at an entry price of £1.10p per share.

Even after tripling in price, Mr Thompson believes they still represent good value.

The company's brokers, Brewin Dolphin Securities, are predicting a rise in pre-tax profits to £1.7 million when the annual results are announced in July.

And for the following year, they are forecasting a pre-tax total of £3.3 million. Based at Crossfield Street, Inter Link employs more than 350 people making cakes and pies for the major supermarket chains such as ASDA, Morrisons and Tesco.

Over the past 12 months, the company has gone through a major expansion programme, buying a number of bakeries in Oldham and Dewsbury.

The takeover spree came to an end in March with the £3.75 million acquisition of Nicholas & Harris which brought with it the rights to TV characters such as The Simpsons, Pokemon, Bob the Builder and Bagpuss.

Mr Thompson said the new businesses were trading well now that they had been integrated into the group.