AN investment guru has bought a £300,000 slice of a Blackburn cake firm.

Jim Slater, well known for choosing companies that have special growth potential, has bought 253,300 shares in Inter Link Foods.

Mr Slater now owns just over five per cent of the Blackburn-based company which runs Crossfield Foods in the town.

The bakery manufactures cakes such as mini apple pies for major supermarket firms. London-based Mr Slater, who has a following of thousands of private investors, is said to be an avid fan of the firm's cherry bakewells!

Inter Link's shares have increased in recent weeks to 122p - the highest price since the firm floated last year and valuing the firm at more than £5.7 million.

Inter Link is the latest East Lancashire stock market firm to have a major stake bought in it by a high profile private investor. Blackburn-based Crown Eyeglass and French Group, which owns pillow and quilt manufacturer Northern Textiles in Burnley, have also been targeted.

Many city experts believe shares in a number of smaller firms are undervalued on the stock market.

"We are very pleased to welcome Mr Slater as a shareholder," said Alwin Thompson, joint managing director of the firm.

"It is most pleasing to have such a well known investor among our shareholder base."

Mr Slater said he had invested in the company because he said it had strong cash flow and forecasts for high levels of growth.

Inter Link foods was set up five years ago to buy out struggling Crossfield Foods in the town five years ago.

At the time it was making losses of £350,000 on £1.4 million turnover and the jobs of its workforce were at risk.

Today the business employs 200 people and makes a profit of £340,000 on a £5 million turnover. Its next profit figures are due out on July 1.

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