AN artisan baker has expanded to new larger premises and opened a cafe just 15 months after it was formed.

Archipelago has taken a £25,000 loan from Royal Bank of Scotland to create the cafe, takeaway and bakery on Dundas Street in Edinburgh.

The business, owned by Caroline Walsh, started up on Queen Street in February last year.

Ms Walsh, a former head baker at Loudons who has also worked overseas, bakes a range of cakes, pastries and breads every day with an emphasis on organic and local ingredients.

She believes the business has established its name with both retail and wholesale customers and now wants to embark on the next stage of growth.

She said: "I've always love the idea of making well-made goods and making sure that my ingredients have provenance.

"Thanks to shifting attitudes amongst the public who are much more knowledgeable about food and who care about what they are eating there is a real market out there for people who want food that tastes great and healthy at the same time."

Ms Walsh plans to have the bakery and cafe open six days a week and plans to create some new jobs.

She also intends to give other local food manufacturers space to sell their products.

Euan Reynolds, business manager at RBS, said: "The food and drink sector is a key industry for Scotland and it has been brilliant to help Caroline realise her ambitions.

"RBS has been able to be there for her to talk her through different aspects of developing her business - something that is crucial when operating as a sole trader."