Thomas Egan died from anaphylactic shock

Jigsaw Day Nurseries Ltd was sentenced at Aylesbury Crown Court on Thursday.

The firm running the nursery in Browns Wood, Milton Keynes, had earlier pleaded guilty to a series of failures under the Health and Safety at Work Act 1974.

Thomas Egan, who was five months old, was found to be allergic to all dairy products shortly after his birth in October 2001.

But a nurse at the Jigsaw Day Nursery fed Thomas a breakfast cereal, not realising it contained milk.

The baby turned blue, struggled to breathe, and died from massive anaphylactic shock - a severe allergic reaction.

Nursery admitted failure

The firm had pleaded guilty at Milton Keynes Magistrates Court in August this year but the case was referred to Aylesbury Crown Court.

The company admitted a failure in its duty to ensure that children were not exposed to risks to their health.

Early last year, Thomas' mother Wendy Egan, of Old Farm Park, Milton Keynes, sought out a day nursery for her son and, during meetings with staff at Jigsaw Day Nursery, told them of her son's allergy.

But on 11 April last year, Thomas was fed Farley's Sunrise Breakfast Cereal.

The nursery nurse who fed him had not checked the label, and the ingredients contained dried milk.