REG - Cake Box Holdings - AGM Statement and Board Update

Cake Box HoldingsAnnouncement

22/08/2023 07:00

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RNS Number : 9941J  Cake Box Holdings PLC  22 August 2023

22 August 2023

 

Cake Box Holdings plc

("Cake Box" or the "Company" or the "Group")

 

AGM Statement and Board Update

Notice of Capital Markets Event

 

Cake Box Holdings plc, the specialist retailer of fresh cream cakes, announces
a trading update ahead of the Company's annual general meeting, being held at
11.00 am today.

 

Trading update

 

The Group is pleased to provide an update for the 17 week trading period to 30
July 2023. The positive trading momentum from the second half of the previous
year has continued, with franchisee store like-for-like sales increasing 6.8%
for the first 17 weeks of the new financial year (ending 31 March 2024
(FY24)). This is an increase from 5.4% like-for-like sales growth for the
first 11 weeks of the new financial year reported at the Group's FY23 results
on 26 June 2023.

 

The Group has continued to maintain tight cost control and taken proactive
action to minimise the inflationary impacts on its input and administrative
costs. There have been some improvements in input costs to the Group, with
fresh cream prices decreasing in the first quarter of the year. Cake Box
remains mindful of significant inflationary pressures that still exist on its
franchisees and customers across the country and therefore has passed on part
of this cost reduction to franchisees to help strengthen their margins.

 

The Group continues to have a strong balance sheet and had cash as at close of
business on 30 July 2023 of £7.9m, prior to paying the proposed final
dividend for FY23 of 5.5 pence per share, amounting to an upcoming cash
outflow of £2.2m on 29 August 2023.

 

Strategy in action

 

As announced at the time of our FY23 results, the Group has increased its
investment in marketing in-line with its stated plan. The strengthened
marketing team has focused on growing Cake Box's brand awareness and expand
its digital and e-commerce capabilities. The Company's new website went live
during June 2023, and it is concentrating on leveraging this and the sales
benefits that this new platform provides to its franchisees. The feedback has
been positive and there have been encouraging early results.

 

Cake Box continues to increase its geographic presence, opening a further
seven new franchise stores since the beginning of the new financial year. The
Group now trades out of 212 franchise stores as of 30 July 2023.

 

Board update

 

After more than five years as the Non-Executive Chairman of Cake Box, Nilesh
("Neil") Sachdev has informed the Board of his intention to step down at the
Company's Half Year Results in November 2023 to concentrate on his growing
commitments outside of Cake Box. The Board would like to thank him for the
pivotal role he has played in helping guide the Company since its IPO on AIM
in June 2018. The Board will initiate a recruitment process to appoint Neil's
successor.

 

Neil Sachdev commented: "Cake Box is fantastic business that has grown
significantly since our IPO over five years ago. I am proud of what we have
achieved, building a company that now has over 100 franchisees including a
large number of female franchisees running their own businesses. We have a
strong leadership team who I am confident will continue our growth in the
years to come."

 

Outlook

 

As a result of the above progress on trading and strategy, the Group is on
track to deliver year-on-year revenue growth, in line with market
expectations.

 

Looking further ahead, with a strong balance sheet, underpinned by a highly
cash generative business model, the recent investment in professionalising the
Group's functions and its baking and distribution facilities along with the
strengthened sales and marketing functions, the Group is well positioned to
deliver shareholder value in the short- to mid-term.

 

Notice of Capital Markets Event

 

The Company plans to host a Capital Markets Event for investors and analysts
to provide an update on the Group's strategy on Wednesday 18 October 2023 at
its head offices in Enfield. For further details, please contact MHP at
Cakebox@mhpgroup.com (mailto:Cakebox@mhpgroup.com)

 

For further information, please contact:

 

 Cake Box Holdings plc                   Enquiries via MHP

 Sukh Chamdal, CEO

 Michael Botha, CFO

 Shore Capital (Nomad and Joint Broker)  +44 (0) 20 7408 4090

 Stephane Auton

 Patrick Castle

 Fiona Conroy

 Liberum (Joint Broker)                  +44 (0) 20 3100 200

 Clayton Bush

 Edward Thomas

 MHP                                     +44 (0) 7834 623818

 Charlie Barker                          cakebox@mhpgroup.com

 Robert Collett-Creedy

 

 *Like-for-like: Stores trading for at least twelve months prior to 30 July
2023.

 

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