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Preheat the oven to 180C/160fan/350F/Gas mark 4. Grease and line a 450g (1lb) loaf tin.
Sift the flour and salt into a large mixing bowl. Stir in the caster sugar and rub in the butter until the mixture resembles fine breadcrumbs.
Beat the egg and milk together in a small jug or bowl. Toss the cherries with the coconut. Add both to the dry ingredients and fold in gently until the batter is smooth. It will be a fairly thick batter.
Spoon into the prepared loaf tin, smooth out the top with the back of a spoon (so the cake rises evenly) and sprinkle with the demerara sugar. Bake for 45-50 minutes or until a skewer inserted in the middle of the cake emerges clean. Leave to cool in the tin for about 10 minutes before turning out to cool completely on a wire rack.