REG - Cake Box Holdings - Trading Update

Cake Box HoldingsAnnouncement

19/04/2022 07:00

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RNS Number : 4874I  Cake Box Holdings PLC  19 April 2022

19 April 2022

 

Cake Box Holdings plc

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

 

Full Year Trading Update

 

Continued sustainable growth with an exceptional year for store openings

 

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 2022.

 

Continued sustainable growth

 

Trading during the second half has continued to be strong across the Group's
store estate and online delivery channels. Accordingly, the Group expects to
report revenues for the year as up c.50% year-on-year, with adjusted profit
before tax in line with market expectations.

 

Revenues for the ten months to 31 March 2022, excluding the impact of the
March 2020 lockdown and associated store closures from the comparative period,
are expected to have increased c.32%, with total franchisee sales increasing
12% on a like-for-like* basis.

 

Our online delivery and Click & Collect options continue to expand the
Group's customer base, and franchisee online sales increased c.41% during the
year and c.27% on a ten-month basis.

 

 

An exceptional year for store openings

 

The Group opened 11 new franchise stores in the second half (excluding kiosk
openings), bringing the total number of stores opened in the full year to 31
(FY 2021: 24), and leaving the total number of Cake Box stores at period end
at 185. New locations opened in the second half include Tottenham, Plymouth
and Sunderland.

 

There continues to be a high level of interest in Cake Box's differentiated
franchise proposition, with both strong demand for new stores from existing
franchisees and a pipeline of new franchisee applicants representing 53
holding deposits held at the period end.

 

The successful trial of Cake Box kiosks with Asda has continued to expand,
with ten new kiosks opened during the year, taking the total number of Asda
kiosks to 15 in addition to the Group's 20 shopping centre kiosks.

 

Balance sheet

 

The Group's balance sheet remains strong, with a significant increase in the
Group's net cash position, which stands at £5.2m at period end (FY 2021:
£3.6m).

 

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

 

"We have delivered another record performance for the year, demonstrating the
continuing appeal of our customer and franchisee proposition. Our strategy to
reach customers across the UK is starting to deliver. This is thanks to the
dedication, determination and commitment of the exceptional entrepreneurs in
our Cake Box Family, which continues to grow, providing opportunities for
entrepreneurs, creating jobs and providing delicious, fresh cream cakes up and
down the country.

 

"With a strengthened team and investment in our operations and processes, we
have all the right ingredients to continue to sustainably grow the Cake Box
customer base, brand and Family."

 

For further information, please contact:

 

 Cake Box Holdings plc             Enquiries via MHP Communications

 Sukh Chamdal, CEO

 David Forth, CFO

 Shore Capital                     +44 (0) 20 7408 4090

 Stephane Auton

 Patrick Castle

 Fiona Conroy -Corporate Broking

 MHP Communications                +44 (0) 20 3128 8570

 Simon Hockridge                   cakebox@mhpc.com

 Pete Lambie

 *Like-for-like: Stores trading for at least one full financial year prior to
31 March 2022.

 

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