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RNS Number : 4451Q Cake Box Holdings PLC 18 October 2023
18 October 2023
Cake Box Holdings plc
("Cake Box" or the "Company" or the "Group")
Half Year Trading Update and Capital Markets Event
Continued improvement in sales year-on-year and cost pressures starting to
ease
Trading in the first half of the financial year (six months ended 30 September
2023) has been in line with the Board's expectations. The Group expects to
report revenues up c.6% year-on-year, with adjusted profits ahead of H1 2023.
This performance reflects continued strong like-for-like franchise store sales
growth and further new store openings.
Franchisee store like-for-like* sales increased 6.2% for the half year, a
significant improvement on the negative 1.6% reported for the same period in
the prior financial year.
The cost of raw materials has remained stable since the second half of the
prior financial year (ended 31 March 2023). Franchisees have seen some relief
from inflationary pressures with an easing in utility and fuel prices during
the period.
We remain mindful of the continued pressures on our customers in the current
environment and have not increased pricing during the period, which has helped
with customer retention whilst ensuring our proposition is attractive to new
customers.
Store estate growth continues
Franchisees demand for stores remains strong, with a further nine stores
opening in the half (H1 FY23: 11, FY 23: 20), despite the significant increase
in interest rates implemented by the Bank of England since the start of the
2022 calendar year. As at 30 September 2023 the franchise store estate stood
at 214 stores (H1 FY23: 196, FY23: 205).
Strong balance sheet maintained
The Group's cash position remains strong, with cash and cash equivalents of
£7.1m after paying the final dividend of £2.2m for the 2023 financial year
(as at 30 September 2022: £5.5m, as at 31 March 2023 £7.4m). Capex spend was
considerably down on the prior year, due to the substantial investment in the
Group's facilities in the preceding years.
Sukh Chamdal, Chief Executive Officer, said:
"We are pleased with our first half performance, delivering a recovery in
sales and margins as raw material and input prices have stabilised. Our brand
continues to grow and we have made further strides with our marketing
initiatives, with the successful launch of our new website in June 2023
already boosting our online sales channel.
We enter the second half of the year with good momentum and remain confident
in our growth prospects following the investment in our operations and our
enlarged and enhanced operational team. Together with the continued dedication
and enthusiasm from our franchisees, we look forward to continuing to grow our
customer base and brand."
*Like-for-like: Franchise stores trading for at least one full year prior to
30 September 2023
Capital Markets Event
The Company is today hosting a Capital Markets Event for investors and
analysts at its Head Office in Enfield.
The event is intended to provide further detail on the Group's strategy and
opportunities for future growth.
A copy of the presentation will be available under the investor relations
section of the Cake Box website later today:
https://investors.eggfreecake.co.uk/ (https://investors.eggfreecake.co.uk/)
No new material trading information will be disclosed.
For further information, please contact:
Cake Box Holdings plc Enquiries via MHP
Sukh Chamdal, CEO
Michael Botha, CFO
Shore Capital +44 (0) 20 7408 4090
Stephane Auton
Patrick Castle
Liberum (Joint Broker) +44 (0) 20 3100 2000
Edward Thomas
Dru Danford
MHP +44 (0) 7834 623818
Charlie Barker cakebox@mhpgroup.com (mailto:cakebox@mhpgroup.com)
Robert Collett-Creedy
Hugo Harris
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