City File: Brakes applied

Brake Brothers, the high-flying frozen food maker, is being brought down to earth by the deepening losses at London Larder, the fresh produce group it bought 18 months ago.

London Larder lost pounds 1m last year and sources close to the group say this could triple or quadruple this year. In addition, Frank Brake, chief executive of Brake Brothers, admitted that the managing director of London Larder had left the organisation after a disagreement about a bonus payment.

Brake's shares closed on Friday at 502p, 19 times earnings assuming it will make pounds 18m this year. But it will not make pounds 18m this year. Sell.