A cake company started in a couple's one-bedroom flat has been sold - after its turnover reached an estimated £8 million.

The founders of Kate's Cakes, husband-and-wife team Kate Cherkoff and Colin Lloyd, launched their business in their home in Clapham Junction, London, 13 years ago with no baking qualifications or experience.

The company now operates from a 22,000 sq ft industrial unit in Ashington and employs 200 members of staff.

More than 450,000 slices of handmade cake are produced each week and sold to major sandwich shop chains such as Pret Manger.

Best-sellers include carrot cake and chocolate brownies made to Kate's own recipes.

Mr Lloyd, 43, said of his 32-year-old wife: "Kate used to make the cakes in our flat and I used to sell them.

"Neither of us had any baking qualifications whatsoever. We put the company's success down to being innovative and understanding our customers."