REG - Cake Box Holdings - Full Year Trading Update

Cake Box HoldingsAnnouncement

19/04/2023 07:00

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RNS Number : 6624W  Cake Box Holdings PLC  19 April 2023

19 April 2023

 

Cake Box Holdings plc

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

 

Full Year Trading Update

 

Improved performance in the second half

 

Cake Box Holdings plc, the specialist retailer of fresh cream cakes, is
pleased to announce a full year trading update for the 12 months ended 31
March 2023.

 

Second half improvement in sales and margins

 

The Group expects to report revenues for the year up c.5% year-on-year (FY
2022: £33.0m), with adjusted profit before tax in line with market
expectations. This reflects an improvement in trading in the second half of
the year with further new store openings and positive like-for-like sales
growth despite tough comparatives from last year, following the easing of
pandemic lockdowns.

 

The cost of raw materials stabilised during the second half, primarily due to
reduced freight rates, which led to a marginal improvement in Group margins.
Franchisees continued to face inflationary pressures but introduced measures
to mitigate the impact of increased costs and, with the help of effective
marketing initiatives, sales and margins levels were maintained.

 

We have been mindful to protect our value proposition with customers. On this
basis, we have been highly selective with customer price increases and as a
result, we have seen increased customer retention and continued to attract new
customers to the Cake Box brand.

 

Continued growth in store estate

 

The Group has continued to open stores despite the challenging economic
climate that has persisted this year. The Group added 10 new franchise stores
(H2 2022: 11) in the second half, bringing the total number of stores opened
in the full year to 20 (FY 2022: 24). At the year end, the total number of
Cake Box stores across the estate stood at 205. New geographical locations
opened successfully in the second half include Oxford, Kettering and Banbury.

 

Balance sheet

 

The Group's balance sheet remains strong, with a significant increase in the
Group's net cash position, which stood at £6.3m at period end (FY 2022:
£5.2m).

 

Sukh Chamdal, Co-founder and Chief Executive Officer, said:

 

"Just as during the pandemic, we have faced an unprecedented set of
circumstances this year, with the war in Ukraine causing a rise in energy and
raw material prices and a cost of living crisis impacting consumer confidence.
The business showed resilience during a difficult first half and,
encouragingly, we have seen sales recover in the second half, with raw
material prices stabilising.

 

"We continue to strengthen our team and invest in our operations and
processes, and with the dedication, determination and commitment of our staff
and franchisees we continue to grow the Cake Box customer base and brand."

 

 

For further information, please contact:

 

 Cake Box Holdings plc   +44 (0) 20 8443 1113

 Sukh Chamdal, CEO

 Michael Botha, CFO

 Shore Capital           +44 (0) 20 7408 4090

 Stephane Auton

 Patrick Castle

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

 Clayton Bush

 Edward Thomas

 MHP                     +44 (0) 20 3128 8570

 Simon Hockridge         cakebox@mhpgroup.com

 Pete Lambie

 *Like-for-like: Stores trading for at least one full financial year prior to
31 March 2023.

 

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