Shares tumble as Hovis owner’s chief quits after just 18 months

The departure took the market by surprise, sending the group’s shares down 12 per cent to 106p.

Mr Clarke spearheaded the sale of brands such as Sarson’s vinegar and Branston pickle to bring down £1.3bn of borrowing which was built up before the financial crisis.

He will be replaced by Gavin Darby, most recently chief executive of Cable and Wireless Worldwide, but he has agreed to be available until the middle of the year to ensure a smooth handover.

Analysts said they were concerned that Mr Clarke’s departure could derail progress at Premier Foods, which has been trying to focus on core brands like Mr Kipling cakes and Sharwood’s curry products to boost revenue and make its debts more manageable.

The group, which has bakeries in Bradford and Barnsley and a flour mill in Selby, secured a debt refinancing last year.

In November it cut 900 jobs at its bread unit, which accounts for nearly 40 per cent of revenues. The division had lost a £75m contract, reported to be with the Co-Op.

“We see the surprise change of leadership as unhelpful to Premier’s stability and organic growth prospects,” said analyst Martin Deboo at Investec.