Bread price warning from Premier

Premier has already increased bread prices this month

Premier Foods has warned that "unprecedented" wheat costs could force it to raise bread prices again.

Premier bought RHM for £1.2bn in March, a deal which brought it brands such as Hovis and Mothers Pride bread, McDougalls flour and Mr Kipling cakes.

Any price rises would come on top of the increases the firm implemented at the beginning of this month.

Premier's recent acquisitions were reflected in a 112% rise in six-month trading profits to £96.8m.

Profits before tax from continuing operations, which exclude the businesses it has bought, fell 49.6% to £13.9m.

As well as RHM, Premier bought the UK arm of Campbell's soups in August 2006.

The acquisition spree has led to a big rise in Premier Food's debts, which has weighed on its share price amid the current problems in the debt markets.

Premier is one of the few companies claiming to have benefited from the wet summer.

It says that since June, "cooler weather has helped to drive sales growth".