REG - Cake Box Holdings - Final Results
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RNS Number : 0394R Cake Box Holdings PLC 15 July 2025
15 July 2025
Cake Box Holdings plc
("Cake Box" the "Company" or the "Group")
Audited Full Year Results for the 52 weeks ended 30 March 2025
Increases in revenue and underlying EBITDA ahead of expectations as Cake Box
continues to expand its store estate which now surpasses 250 stores
Cake Box Holdings plc, the UK's largest retailer of fresh cream celebration
cakes, announces its audited full year results for the 52 weeks ended 30 March
2025.
Financial Highlights
52 weeks ended
30 March 2025
2024 Change***
Group revenue £42.78m £37.84m 13.0%
Gross profit £22.46m £19.94m 12.6%
EBITDA* £7.81m £7.70m 1.5%
Underlying EBITDA** £8.73m £7.46m 17.1%
Profit before tax £6.16m £6.27m (1.8%)
Underlying profit before tax** £7.08m £6.03m 17.4%
Underlying basic earnings per share 13.18p 11.04p 19.4%
Final dividend recommended 6.80p 6.10p 11.5%
* EBITDA is calculated as operating profit before depreciation and
amortisation
** Underlying EBITDA and pre-and post-tax profits are after adjusting for
exceptional items
*** % change is based on amounts in the Consolidated Statement of
Comprehensive Income
· Gross margin decreased marginally to 52.5% (2024: 52.7%), as the
Group absorbed certain input price increases through the financial period
· Underlying EBITDA** increased 17.1% to £8.73m (2024: £7.46m)
· Group's net debt position was £9.0m (2024: net cash of £7.3m)
following £22m acquisition of Ambala Foods Limited ("Ambala")
· Full year dividend per share increased 13.3% to 10.2p (2024: 9.0p)
Operational Highlights
· Successful acquisition of Ambala, a leading manufacturer and retailer
of Asian sweets (Mithai) in the UK since 1965, currently operating 19
corporate stores and three franchised stores, for a total consideration of
£22m
· Total number of Cake Box franchise stores across the UK increased to
251 (2024: 225), entering new locations such as Belfast, Hastings and Worthing
· 19.0% growth in online sales to £19.1m (2024: £16.1m) following
increased investment in digital marketing and e-commerce capabilities
· Launched a number of new products to capture latest trends, including
an exclusive partnership with Ferrero UK to launch a Nutella range, and the
popular Dubai Chocolate range, with lines specifically for Valentine's Day,
Mother's Day and Eid
· The Board has been strengthened by the appointments of Malar
Velaigam, Catherine Nunn, and Andrew Boteler, all joining as Non-Executive
Directors
Franchisee Highlights
· Franchisee total turnover increased 9.5% to £86.3m (2024: £78.8m)
· Like-for-like(1) sales growth of 3.0% in franchise stores (2024:
4.4%)
· Number of multi-site franchisees increased to 54 (2024: 47)
Current Trading and Outlook
· Trading in the 2026 financial year has started positively and in line
with market expectations, supported by continued momentum in franchise store
performance and growing online sales
· The integration of the Ambala acquisition is progressing well and on
track to achieve identified cost savings and efficiencies
· Whilst it remains a challenging consumer environment, the Group is
well positioned for continued growth, with an expanding store estate, growing
customer loyalty and increasing online sales
(1) Like-for-like: Stores trading for at least one full financial year prior
to 30 March 2025.
Sukh Chamdal, Chief Executive Officer, said: "In the past year, we achieved
significant operational growth and are pleased to report growing sales and
underlying EBITDA ahead of market expectations. This success was due to strong
franchise store performance, expansion of our store network, and the
effectiveness of our multi-channel sales strategy. Notably, we celebrated the
opening of our 250th store in Hastings, progressing toward our target of 400
locations.
"Our strategic acquisition of Ambala Foods in March 2025 enhances our product
portfolio and diversifies revenue streams, focusing on celebratory and
indulgent treats. Ambala's rich heritage and popular products align seamlessly
with our brand, creating opportunities for synergies, accelerated organic
growth in new regions and reaching new customers.
"Looking ahead, we have entered the new financial year with positive trading
momentum and are making good progress in integrating Ambala. We remain
dedicated to growth, innovation, and solidifying our position as the UK's
leading retailer of fresh cream celebration cakes."
For further information, please contact:
Cake Box Holdings plc c/o +44 (0) 20 4582 3500
Sukh Chamdal, CEO
Michael Botha, CFO
Shore Capital +44 (0) 20 7408 4050
Stephane Auton
Patrick Castle
George Payne
Fiona Conroy - Corporate Broking
Gracechurch Group +44 (0) 20 4582 3500
Harry Chathli cakebox@gracechurchpr.com
Alexis Gore
Rebecca Scott
Operational Review
It has been another excellent year of strong growth for Cake Box with
increases in revenue and underlying EBITDA ahead of expectations. The
strategic initiatives implemented by management, including an expanding store
estate, revamped e-commerce platform, and successful brand refresh, alongside
the acquisition of Ambala, provides an excellent platform for further growth.
These initiatives have collectively strengthened the Group's operational
platform and extended Cake Box's market presence. The combination of the
enhanced online performance and growing high street presence positions Cake
Box for sustained growth.
Delivering on the Group's Growth Ambitions
Expanding store estate
The Group's success is driven by its franchisees. Cake Box opened 26 new
stores during 2025, exceeding managements target at the start of the year,
taking the total to 251 Cake Box stores as of 30 March 2025. The Group saw a
9.5% increase in total franchise store sales and like-for-like sales increase
of 3.0%, reflecting successful store openings and strong customer demand.
In addition, 19 corporate and three franchised Ambala stores were added to the
store estate following the acquisition in March 2025. As part of the Group's
expanding footprint, Cake Box reached new regions including Northern Ireland,
and in the first half of the 2026 financial year, the Group opened its first
international store in Paris.
Cake Box is focused on growing its store estate, with a target to reach 400
locations and there remains strong demand for new stores both within the
franchisee base and from new potential franchisees. As of 30 March 2025, Cake
Box has 109 franchisees of which 54 operate more than one Cake Box store.
The Group continued to work closely with external property consultants to
identify and secure high-potential locations, which led to the successful
identification of additional areas suitable for either new Cake Box stores or
to strengthen the Group's presence in existing regions. Encouraging progress
continues as the Group builds towards its long-term expansion goals.
The positive downward trends for utility costs combined with the stabilisation
of food costs has had a positive impact of franchisee margins and
profitability.
Marketing and multi-channel approach driving growth
The Group's enhanced marketing strategy continues to deliver strong results,
further increasing brand awareness, driving customer acquisition and loyalty.
Investment in digital marketing and e-commerce capabilities remains central to
the Group's growth strategy, with online sales increasing by 19.0%
year-on-year, and online transactions now accounting for 23.5% of franchise
store sales for the 52 weeks ended 30 March 2025, with some weeks exceeding
25.0% of franchise sales.
The launch of a customer loyalty programme, Cake Club, in June 2024 has been
well received, and has reached the landmark of surpassing 100,000 members. In
addition, there has been a significant uplift in the marketing database, a
100% increase to 768k subscribers and SMS database growth of 78% to 348k.
These developments allow for more personalised and impactful customer
engagement.
Website performance has remained strong, with total visits reaching five
million in 2025, a 39.4% increase year-on-year, with over 250,000 new online
customers.
The increasing online sales also reflect Cake Box's online 'click-and-collect'
feature, which allows customers to order personalised, fresh cream cakes for
collection within the hour, and continues to grow in popularity.
The annual central marketing fund with the franchisees is designed to increase
digital and social media reach, grow the brand and attract new customers. All
the new stores opened during the financial year have the new refreshed
branding and 78 of the total estate now carry the new look, which continues to
be rolled out across the business.
Strategic acquisition of Ambala to expand product range and market reach
In March 2025, Cake Box completed the acquisition of Ambala, a
well-established manufacturer and retailer of traditional Asian sweets and
snacks, for a total of £22.0m, which included £16.0m for Ambala and £6.0m
for Ambala's industrial freehold building located in Welwyn Garden City.
Ambala broadens the Group's product portfolio and diversifies its revenue
streams while remaining aligned with Cake Box's core focus on celebratory and
indulgent treats.
The Board has identified cost savings and efficiency benefits of at least £1m
in both the near and medium term. These benefits are expected to be delivered
over the next 18 to 24 months, through a number of efficiency initiatives.
Operational efficiencies will be achieved through greater automation and
improved utilisation at Ambala's manufacturing facility, reducing production
costs and enhanced productivity. The Group is also streamlining head office
functions by merging certain Group functions to reduce overhead costs and
enhance administrative efficiency.
Further savings are expected from economies of scale as consolidation of the
supply chain enables better pricing on materials and packaging. By leveraging
Cake Box's scale and supplier relationships, the Group aims to significantly
reduce input costs. In addition, integrating Ambala's logistics into Cake
Box's existing delivery network will unlock routing efficiencies and reduce
transportation costs.
These operational synergies form part of a comprehensive integration plan.
This plan is progressing well, with initial focus on aligning systems and
leveraging the significant operational efficiencies and cost savings while
enhancing the Group's opportunities to accelerate revenue growth.
The acquisition was supported by a successful £7.2m equity fundraise,
underlining strong shareholder support for the Group's growth strategy with
both the institutional placing and retail offer substantially oversubscribed.
Continuing to invest in growth
In the first half, Cake Box completed the purchase of land adjacent to its
Bradford depot for £0.7m. This is to support new store growth in the north of
England and Scotland. Cake Box also improved its IT and e-commerce
capabilities to capitalise on its significant growth opportunities, with a
total capex spend of £1.0m, and a further £1.0m was spent on depots during
the period.
Board changes
During the period, Cake Box was pleased to welcome several highly capable
individuals to the Board. Malar Velaigam joined as a Non-Executive Director
and Chair of the Remuneration Committee, Catherine Nunn as a Non-Executive
Director and Chair of the ESG Committee, and Andrew Boteler as a Non-Executive
Director and Chair of the Audit Committee.
These appointments reflect the Group's continued commitment to strong
governance and experienced leadership, aligned with Cake Box's long-term
strategic objectives. Each brings valuable expertise and perspective that will
be instrumental as the Group enters its next phase of growth.
Financial review
52 weeks ended 30 March 2025* 2024 Change***
£m £m
Group Revenue 42.78 37.84 13.0%
Gross Profit 22.46 19.94 12.6%
Operating expenses before exceptional items (15.10) (13.76) (9.7%)
Exceptional items (0.92) 0.24
Operating profit 6.44 6.42 0.2%
Net finance cost (0.28) (0.15) (80.2%)
Profit before tax 6.16 6.27 (1.8%)
Underlying profit before tax** 7.08 6.03 17.4%
Taxation (1.78) (1.61) (10.8%)
Profit for the period 4.38 4.66 (6.1%)
Underlying profit for the period** 5.30 4.42 19.8%
Revaluation of freehold property 0.15 0.22
Deferred taxation on revaluation (0.04) (0.06)
Total comprehensive income for the year 4.49 4.82 (6.9%)
EBITDA 7.81 7.70 1.5%
Underlying EBITDA** 8.73 7.46 17.1%
* EBITDA is calculated as operating profit before depreciation and
amortisation
** Underlying EBITDA and pre-and post-tax profits are after adjusting for
exceptional items
*** % change is based on amounts in the Consolidated Statement of
Comprehensive Income
Acquisition of Ambala Foods Limited
The Group completed the acquisition of Ambala on 21 March 2025. Ambala has
been a leading manufacturer and retailer of Asian sweets, also known as
Mithai, since 1965 in the UK, establishing itself as a prestigious, well-known
brand within UK Asian communities.
Ambala provides significant growth opportunities, both through store estate,
with Ambala currently operating 19 corporate stores, three franchised stores,
and a diversified product range. The Group plans to expand the Ambala brand in
the future through franchising.
The acquisition comprised £16.0m for the business and £6.0m for the
industrial freehold property of Ambala. The acquisition was funded through a
new £15.2m term loan facility and £7.2m new equity raise.
Ambala's balance sheet as at 30 March 2025 is consolidated in the Group's
Consolidated Statement of Financial Position for the 52 weeks ended 30 March
2025, as well as the trading from the date of acquisition, 21 March 2025,
until the end of the financial period, 30 March 2025.
Cake Box Franchise Sales
A key metric for measuring the revenue performance of the Group is franchise
sales. This is the sales of finished products to the customers of the
franchisees. These sales are either generated instore or online through Cake
Box's e-commerce platform. Total franchise sales increased by 9.5% to £86.3m
(2024: £78.8m). The increase was a result of a 3.0% increase in franchise
store like-for-like sales, additional sales from stores opened during 2024 and
sales from the 26 new stores opened during 2025 (2024: 20).
Reported Group Revenue
Group revenue consists of products and ingredients sold to franchisees,
revenue invoiced for new store builds, recharges to franchisees and sales of
Asian confectionary and savoury products through the Ambala corporately owned
stores.
Reported Group revenue (including Ambala) for the 52 weeks ended 30 March 2025
increased by 13.0% to £42.8m (2024: £37.8m). This was due to the increase in
franchise store sales as well as the addition of 26 new franchise stores
opening in the period. This positive outcome was achieved despite the
continued challenging economic and consumer environment, with consumer's
disposable income impacted by high interest rates, utility costs and
inflation. Excluding the sales contribution from the Ambala stores of £0.8m,
Group revenue increased by 10.8%.
Gross Profit
Gross profit as a percentage of Group revenue at 52.5%, 0.2% below 2024.
Product margins, for food and non-food items sold to franchisees, marginally
decreased to 53.2% (2024: 53.5%), as the Group absorbed certain input price
increases through the financial period. Overall, raw material costs were
stable during the year, as the Group benefitted from having multiple suppliers
for its main ingredients, which enabled it to maintain competitive pricing
amongst its suppliers.
Maintaining its cost basis enabled the Group to minimise the increase in
pricing to its franchisee partners, which in turn benefited the margins of the
franchisees, as they were able to maximise price increases to customers.
Pricing increases to customers were carefully reviewed to ensure Cake Box
remained competitive in the continued challenging and tough economic climate
throughout the year. The Group benefits through increased volumes from new
customers drawn to the brand, which in turn increases the operational gearing
of the depots.
Underlying EBITDA
Underlying EBITDA increased 17.1% to £8.7m (2024: £7.46m) as a result of the
increased operational gearing of the Group during the period, as well as
£0.1m EBITDA from Ambala for the period since completion of the acquisition.
This was due to the increase in overheads for the Group of 9.7%, being well
below the increase in Group revenues of 13.0% and gross profit of 12.6%.
Overheads excluding Ambala were up 5.8%, compared to revenue up 10.8%
(excluding Ambala).
Reported EBITDA was £7.8m compared to £7.7m for 2024. The difference between
Reported and Underlying EBITDA is due to the exceptional items reported in
both periods. The Group incurred £0.7m of one-off costs relating to the
acquisition of Ambala in March 2025 and £0.2m impairment of historical
website development costs, which have been classified as exceptional items.
The exceptional item in 2024 related to the reversal of a £0.2m provision
created in prior years for a website data breach.
52 weeks ended 30 March 2025 2024 Change
£m £m
Reported operating profit 6.44 6.42 0.2%
Depreciation & Amortisation 1.37 1.28
Reported Group EBITDA 7.81 7.70 1.5%
Exceptional items 0.92 (0.24)
Underlying Group EBITDA 8.73 7.46 17.1%
Underlying Group EBITDA attributable to:
Cake Box 8.64 7.46 15.8%
Ambala Foods Limited 0.09 -
Underlying Group EBITDA 8.73 7.46 17.1%
Although the Group only acquired Ambala on 21 March 2025, Ambala generated
£0.1m of EBITDA for the short period from acquisition until the end of the
financial period. This was due to Ramadan falling during March 2025, with Eid
at the end of the financial period, on 30 March 2025. The celebration of Eid
is one of the most profitable periods for Ambala.
Exceptional items
The exceptional item of £0.9m for the period, relates to £0.7m of
professional fees, due diligence and other fees incurred in relation to the
acquisition of Ambala, which completed on 21 March 2025 and £0.2m for the
impairment of historical website costs.
The exceptional item for 2024 comprised solely of a £0.2m provision made in
FY21 following a website data breach. During 2024, the Information
Commissioner's Office ("ICO") informed the Group that it would not be pursuing
any enforcement action relating to the case and considered the case closed. As
a result, the Group released this provision in line with the treatment of the
original provision.
Balance sheet
The Group's net assets have grown from £19.3m to £27.0m, mainly due to the
impact of the acquisition of Ambala. Non-current assets have increased from
£15.0m to £44.5m, due to the Goodwill of £13.8m from the acquisition, the
£4.0m increase in the Right-of-Use assets from Ambala store leases and £6.3m
purchase of the Ambala industrial freehold (including stamp duty).
The non-current liabilities have increased from £5.2m to £21.7m, as a result
of the £15.2m new term loan to partly finance the purchase of Ambala and
£4.0m lease liabilities in Ambala.
Cash balances of £6.3m at 30 March 2025 are £2.2m lower than prior period
(31 March 2024: £8.5m). The Group's net debt of £9.0m (2024: net cash of
£7.3m) at 30 March 2025, was 1.03x underlying EBITDA.
As the Group operates a franchise model, it has relatively low capital
expenditure requirements and a flexible cost base.
The Board is confident that the Group's cash levels, and liquidity are
sufficient for the operational requirements of the Group, despite the
continued tough macroeconomic climate.
Property
At each year end, surveyors are instructed to value the Company's three
freehold depots, Enfield, Bradford and Coventry, to ensure a consistent value
base. The new valuation has resulted in a further uplift of £0.2m in the
reported values of the three sites for the consolidated report and accounts.
In addition to a professional valuation at the financial period end, the
industrial freehold for Ambala was valued as part of the acquisition due
diligence as well as in conjunction with the term loan facility provided by
banks.
Taxation
The effective rate of taxation was 28.9% (2024: 25.6%). The effective tax rate
was higher than the statutory rate due to expenses not allowable for tax
purposes and adjustments relating to prior periods.
Earnings per share ("EPS")
Reported basic and diluted earnings per share were 6.4% and 7.1% below the
prior financial period respectively, at 10.90p (2024: 11.65p) and 10.63p
(2024: 11.44p). Reported profit after tax was 6.1% below the prior year.
Underlying basic and diluted earnings per share was 13.18p (2024: 11.04p) and
12.85p (2024: 10.84p), 19.4% and 18.6% ahead of the prior financial period
respectively. This is after the adjustment for the exceptional items of £0.9m
in the current financial period, compared to an exceptional income item of
£0.2m, in the prior period.
The number of shares in issue as at 30 March 2025, was 44,000,000. This is
4,000,000 above the Company's IPO in June 2018, due to the share issue to
partly fund the acquisition of Ambala in March 2025.
Dividend
As a result of the significant profit growth and cash generation reported for
the 2025 financial period, the Board is pleased to recommend a final dividend
of 6.8p per share (2024: 6.1p). The proposed total dividend for the year will
total 10.2p (2024: 9.0p), a 13.3% increase year on year, continuing the
progressive dividend policy employed by the Board. The dividend cover is 1.29x
(2024: 1.23x) based on underlying basic earnings per share.
If approved by the shareholders at the Company's AGM on 29 August 2025, the
final dividend of 6.8p will be paid on 5 September 2025. The record date for
shareholders on the register will be 8 August 2025, with an ex-dividend date
of 7 August 2025. The Group's ISIN and TIDM are GB00BDZWB751 and CBOX,
respectively.
Cash position
52 weeks ended 30 March 2025 2024
£m £m
EBITDA 7.81 7.70
Exceptional items (see Note 10) 0.92 (0.24)
Underlying EBITDA 8.73 7.46
Add back:
Working capital 0.19 (0.44)
Share-based charge 0.22 0.09
Net interest (0.28) (0.16)
Corporation tax (1.79) (0.83)
Free cash flow 7.07 6.12
Capex (3.07) (1.35)
Proceeds on sale of assets 0.02 0.05
Ambala freehold (6.32) -
Acquisition of subsidiary - Ambala (15.94) -
Acquisition costs (0.74)
New share issue 7.20 -
Costs directly attributable to share issue (0.47)
Dividends (3.80) (3.36)
Repayment of finance leases (0.28) (0.27)
Movement in net surplus cash (16.33) 1.19
Opening net surplus cash 7.31 6.12
Closing net (debt)/ surplus cash (9.02) 7.31
Underlying EBITDA of £8.7m was £1.3m above the prior financial period (2024:
£7.46m). Free cash flow was impacted by an increase of £1.0m in corporation
tax paid, offset by £0.6m improvement in working capital.
Free cash flow generated was £7.1m (2024: £6.1m), this was offset by £3.1m
of capital expenditure (2024: £1.4m), which included £1.1m for the new
Bradford warehouse, classified under assets-under-construction, and returns to
shareholders through dividends of £3.8m (2024: £3.4m).
The Group had £6.3m of cash and cash equivalents at year end, a £2.2m
decrease on the prior financial period (2024: £8.5m). The Group's net debt
position was £9.0m (2024: net cash of £7.3m), a £16.3m decrease on the
prior financial period. This decrease is primarily due to the acquisition of
Ambala which was partly funded through a new £15.2m term loan facility from
banks.
Net cash position is calculated by taking the cash and cash equivalents less
the outstanding mortgage debt relating to the Group's freehold properties and
term loans from banks.
Capital employed and balance sheet
52 weeks ended 30 March 2025 2024
£m £m
Goodwill 13.76 -
Intangible assets 2.41 0.73
Property, plant and equipment 20.64 11.48
Right-of-use-assets 5.97 2.27
Other financial assets 3.06 1.05
Lease liabilities (6.15) (2.43)
Provisions (0.34) -
Working capital 0.53 1.85
Net (debt)/surplus cash (9.02) 7.31
Tax (3.87) (2.96)
Net assets 26.99 19.30
Goodwill addition in the financial period relates to the Ambala acquisition.
Intangible assets have increased by £1.7m on the prior financial period, due
to the capitalisation of costs relating to the new ERP system and website
development and the Brand intangible asset identified as part of the Ambala
acquisition. Property, plant and equipment has increased by £9.2m, due to
additions of £1.1m for assets under construction, £6.3m for the Ambala
industrial freehold as part of the acquisition and a further £0.2m increase
in the valuations of the Group's three freehold properties, offset by £0.9m
of depreciation charged for the year. Right-of-use assets has increased by
£3.7m, as a result of the £4.0m additional Ambala store leases, marginally
offset by the amortisation charge for the year.
Loans to franchisees increased by £2.0m during the year, predominantly due to
short term bridging loans to franchisees for new store openings until their
bank finance is approved and funds released by their banks.
Provisions relate to the dilapidation provision in Ambala, for future
dilapidation charges under the store lease agreements.
Working capital decreased by £1.3m, due to an increase of £1.1m in
inventories, £1.2m in accounts receivable, offset by an increase of £3.6m in
accounts payable, predominantly due to the consolidation of Ambala.
Outlook and current trading
Trading to date in the new financial year has been positive, with total
franchise sales and like-for-like sales increasing compared with the same
period in FY25, and the Group is well positioned to meet market expectations
for FY26.
Cake Box operates as a cash-generative, asset-light business, with a strong
balance sheet. The Group continues to invest in marketing initiatives aimed at
boosting customer engagement, while the store expansion strategy remains on
track with a strong pipeline of new openings ahead.
The integration of an improved digital infrastructure with the Group's growing
high street estate positions Cake Box well for continued growth. Management
believes the acquisition of Ambala strengthens the Group's position as a
multi-brand, multi-channel food business with further potential to grow both
organically and through carefully considered strategic opportunities.
The Board remain focused on building long-term value through disciplined
execution and strategic investment, reinforcing the Group's market position
and supporting sustainable future performance.
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE 52 WEEKS ENDED 30 MARCH 2025
Company Registration No. 08777765
Note 52 weeks ended 30 March 2025 2024
£ £
Revenue 3 42,780,626 37,844,963
Cost of sales (20,323,680) (17,905,058)
Gross profit 22,456,946 19,939,905
Administrative expenses before exceptional items (15,105,112) (13,947,694)
Impairment of receivables - writeback/(charge) 4 5,000 187,856
Exceptional items 4 (919,722) 243,100
Administrative expenses 4 (16,019,834) (13,516,738)
Operating profit 6,437,112 6,423,167
Finance income 6 149,395 153,145
Finance expense 6 (433,567) (310,885)
Profit before income tax 6,152,940 6,265,427
Income tax expense 11 (1,779,648) (1,606,742)
Profit after income tax 4,373,292 4,658,685
Other comprehensive income for the year
Items that will not be subsequently reclassified to profit or loss:
Revaluation of freehold property 13 154,907 223,178
Deferred tax on revaluation of freehold property 12 (38,727) (55,795)
Total other comprehensive income for the year 116,180 167,383
Total comprehensive income for the year 4,489,472 4,826,068
Attributable to:
Equity holders of the parent 4,489,472 4,826,068
Earnings per share
Basic - pence 34 10.90 11.65
Diluted - pence 34 10.63 11.44
The notes on form an integral part of these financial statements.
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 MARCH 2025
Note As at 30 March 2025 As at 31 March 2024
£ £
Assets
Non-current assets
Goodwill 14 13,763,142 -
Intangible assets 14 2,412,202 727,783
Property, plant and equipment 13 20,636,295 11,480,193
Right-of-use-assets 15 5,974,944 2,274,550
Other financial assets 18 1,721,900 564,535
44,508,483 15,047,061
Current assets
Inventories 16 3,657,778 2,592,838
Trade and other receivables 17 5,328,345 4,154,184
Other financial assets 18 1,335,998 487,652
Cash and cash equivalents 32 6,325,774 8,454,265
16,734,945 15,688,939
Total Assets 61,243,428 30,736,000
Equity and liabilities
Equity
Issued share capital 19 440,000 400,000
Capital redemption reserve 20 40 40
Share premium account 20 6,691,995 -
Share option reserve 20 365,479 95,266
Revaluation reserve 20 3,733,218 3,617,038
Retained earnings 20 15,761,637 15,188,345
Equity attributable to the owners of the parent company 26,992,369 19,300,689
Current liabilities
Trade and other payables 24 8,546,315 4,892,228
Lease liabilities 15 688,363 280,425
Short-term borrowings 23 2,053,091 146,544
Current tax payable 953,949 948,523
Provisions 25 335,864 -
12,577,582 6,267,720
Non-current liabilities
Lease liabilities 15 5,461,384 2,149,413
Borrowings 23 13,293,581 997,050
Deferred tax liabilities 12 2,918,512 2,021,128
21,673,477 5,167,591
Total Equity and liabilities 61,243,428 30,736,000
The notes form an integral part of these financial statements.
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE 52 WEEKS ENDED 30 MARCH 2025
Note 52 weeks ended 30 March 2025 2024
£ £
Cash flows from operating activities
Profit before income tax 6,152,940 6,265,427
Adjusted for:
Depreciation of property, plant, and equipment 4 & 13 939,499 856,282
Amortisation of intangible assets 4 & 14 136,621 106,810
Depreciation of right-of-use assets 4& 15 299,940 299,940
Impairment of website costs 176,935
-
(Profit)/Loss on disposal of property, plant, and equipment (21,390) 13,606
Share based payment expense 215,381 93,445
Finance income (149,395) (153,145)
Finance costs 433,567 310,885
Decrease/(increase) in inventories 296,596 197,886
(Increase)/decrease in trade and other receivables (192,348) (1,470,563)
(Increase)/decrease in other financial assets (2,005,711) (297,775)
Increase/(decrease) in trade and other payables 2,105,455 1,125,815
(Decrease)/increase in provisions - (243,100)
Cash generated from operations 8,388,090 7,105,513
Taxation paid (1,791,721) (829,251)
Net cash inflow from operating activities 6,596,369 6,276,262
Cash flows from investing activities
Acquisition of subsidiary net of cash acquired 21 (15,935,058)
-
Net assets on acquisition (1,788,044) -
Goodwill on acquisition (13,763,142) -
Intangible assets on acquisition (742,254) -
Acquisition subsidiary - cash balance 358,382 -
Purchase of new subsidiary freehold 13 (6,319,860)
-
Purchases of property, plant and equipment 13 (1,004,971) (892,226)
Additions in intangible assets 14 (1,008,303) (453,920)
Purchase of assets under construction 13 (1,052,175)
-
Proceeds from sale of property, plant and equipment 25,031 51,620
Finance income 149,395 153,145
Net cash outflow from investing activities (25,145,941) (1,141,381)
Cash flows from financing activities
New share issue 7,200,000
-
Costs directly attributable to share issue (468,005)
Repayment of finance leases (280,425) (270,118)
Repayment of borrowings (740,788) (93,196)
New borrowings 14,943,866
-
Dividends paid 8 (3,800,000) (3,360,000)
Finance cost (433,567) (310,885)
Net cash inflow / (outflow) from financing activities 16,421,081 (4,034,199)
Net (decrease) / increase in cash and cash equivalents (2,128,491) 1,100,682
Cash and cash equivalents at 1 April 2024 8,454,265 7,353,583
Cash and cash equivalents at 30 March 2025 32 6,325,774 8,454,265
The notes form an integral part of these financial statements.
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE 52 WEEKS ENDED 30 MARCH 2025
Attributable to the owners of the Parent Company
Share capital Capital redemption reserve Share premium account Share option reserve Revaluation reserve Retained earnings Total
£ £ £ £ £ £ £
At 31 March 2023 400,000 40 - - 3,449,655 13,889,660 17,739,355
Profit for the year - - - - - 4,658,685 4,658,685
Revaluation of freehold property - - - - 223,178 - 223,178
Deferred tax on revaluation of freehold property - - - - (55,795) - (55,795)
Total comprehensive income for the year - - - - 167,383 4,658,685 4,826,068
Transactions with the owners in their capacity as owners
Share-based payments - - - 93,445 - - 93,445
Deferred tax on share-based payments - - - 1,821 - - 1,821
Dividends paid - - - - - (3,360,000) (3,360,000)
At 31 March 2024 400,000 40 - 95,266 3,617,038 15,188,345 19,300,689
Profit for the year - - - - 4,373,292 4,373,292
Revaluation of freehold property - - - - 154,907 - 154,907
Deferred tax on revaluation of freehold property - - - - (38,727) - (38,727)
Total comprehensive income for the year 0 - - - 116,180 4,373,292 4,489,472
Transactions with the owners in their capacity as owners
Share-based payments - - - 215,381 - - 215,381
Deferred tax on share-based payments - - - 54,832 - - 54,832
Shares issued during the financial period 40,000 - 7,160,000 - - - 7,200,000
Costs directly attributable to share issue - - (468,005) - - - (468,005)
Dividends paid - - - - - (3,800,000) (3,800,000)
At 30 March 2025 440,000 40 6,691,995 365,479 3,733,218 15,761,637 26,992,369
The notes form an integral part of these financial statements.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE 52 WEEKS ENDED 30 MARCH
2025
1. General information
Cake Box Holdings Plc is a listed company limited by shares, incorporated in
England and Wales, with company number 08777765 and domiciled in the United
Kingdom. Its registered office is 20 - 22 Jute Lane, Enfield, Middlesex, EN3
7PJ.
The financial statements cover Cake Box Holdings Plc ('Company') and the
entities it controlled at the end of, or during, the financial year (referred
to as the 'Group').
The principal activity of the Group is a specialist retailer of fresh cream
cakes, Asian confectionary and savoury products and franchise operator.
2. Material accounting policy information
2.1 Basis of preparation of financial
statements
The financial information set out in this statement does not constitute
statutory accounts as defined in section 435 of the Companies Act 2006. This
set of financial results was approved by the Board on 14 July 2025. The
financial information for the 52 weeks ended 30 March 2025 and the year ended
31 March 2024 have been extracted from the statutory accounts for each year.
The auditor's report on the 2025 statutory accounts was (i) unqualified, (ii)
did not include references to any matters to which the auditor drew attention
by way emphasis without qualifying its reports and (iii) did not contain
statements under section S498(2) or S498(3) of the Companies Act 2006.
While the financial information included in this preliminary announcement
has been prepared in accordance with the recognition and measurement criteria
of International Financial Reporting Standards, this announcement does not
itself contain sufficient information to comply with those standards. The
Company expects to publish full financial statements that comply with
International Financial Reporting Standards in August 2025.
The consolidated financial statements for the 52 weeks ended 30 March 2025
have been prepared in accordance with United Kingdom adopted International
Financial Reporting Standards (UK adopted IFRS) and those parts of the
Companies Act 2006 that are applicable to companies which apply UK adopted
IFRS.
The consolidated financial statements have been prepared under the historical
cost convention, other than freehold land and buildings which are measured at
fair value.
The numbers presented in the financial statements have been rounded to the
nearest pound (£) unless otherwise stated.
Acquisition costs that are directly attributable to the business combination
are expensed in the income statement.
Goodwill and other intangible assets arising from business combinations
Goodwill arising on consolidation represents the excess of the fair value of
the consideration given over the fair value of the identifiable net assets
acquired. Goodwill is capitalised on the balance sheet and subject to an
annual impairment test, or more frequently if there are indicators of
impairment. Impairments to goodwill are charged to the income statement in the
period in which they arise.
Business combinations are accounted for using the acquisition method as at the
acquisition date, which is the date on which control is transferred to the
Group. The Group determines whether a particular set of activities and assets
is a business by assessing whether the set of assets and activities acquired
includes, at a minimum, an input and substantive process and whether the
acquired set has the ability to produce outputs.
The carrying amounts of the Group's non-financial assets, other than deferred
tax assets, are reviewed at each reporting date to determine whether there is
any indication of impairment. If any such indication exists, then the asset's
recoverable amount is estimated. For goodwill, the recoverable amount is
estimated each period end at the same time.
Acquisition costs that are directly attributable to the business combination
are expensed in the income statement.
The recoverable amount of an asset or cash-generating unit is the greater of
its value in use and its fair value less costs to sell. In assessing value in
use, the estimated future cash flows are discounted to their present value
using a pre-tax discount rate that reflects current market assessments of the
time value of money and the risks specific to the asset. For the purpose of
impairment testing, assets that cannot be tested individually are grouped
together into the smallest group of assets that generates cash inflows from
continuing use that are largely independent of the cash inflows of other
assets or groups of assets (the "cash-generating unit"). The goodwill acquired
in a business combination, for the purpose of impairment testing, is allocated
to cash-generating units, or ("CGU"). Subject to an operating segment ceiling
test, for the purposes of goodwill impairment testing, CGUs to which goodwill
has been allocated are aggregated so that the level at which impairment is
tested reflects the lowest.
An impairment loss is recognised if the carrying amount of an asset or its CGU
exceeds its estimated recoverable amount. Impairment losses are recognised in
profit or loss. Impairment losses recognised in respect of CGUs are allocated
first to reduce the carrying amount of any goodwill allocated to the units,
and then to reduce the carrying amounts of the other assets in the unit (group
of units) on a pro rata basis.
An impairment loss in respect of goodwill is not reversed. In respect of other
assets, impairment losses recognised in prior periods are assessed at each
reporting date for any indications that the loss has decreased or no longer
exists. An impairment loss is reversed if there has been a change in the
estimates used to determine the recoverable amount. An impairment loss is
reversed only to the extent that the asset's carrying amount does not exceed
the carrying amount that would have been determined, net of depreciation or
amortisation, if no impairment loss had been recognised.
Judgements
The preparation of financial statements under IFRS requires management to make
judgements, estimates and assumptions that affect the application of
accounting policies and reported amounts of assets, liabilities, income and
expenses. The estimates and associated assumptions are based on historical
experience and factors that are believed to be reasonable under the
circumstances, the results of which form the basis of making judgements about
carrying values of assets and liabilities that are not readily apparent from
other sources. Actual results may differ from these estimates. Estimates and
assumptions are reviewed on an ongoing basis and any revision to estimates or
assumptions are recognised in the period in which they are revised and in
future periods affected.
Expected Credit Loss Allowance
The Group exercises judgement in relation to the
calculation of expected credit losses on trade receivables and franchisee
loans. This includes ascertaining what constitutes a significant increase in
credit risk, what is defined as loan default and how forward-looking
information has been incorporated into the simplified approach for trade
receivables. Please see Note 28 for further details.
Key areas of estimation uncertainty
The following areas of estimation uncertainty which have had the most
significant effect on amounts recognised in the financial statements:
Provisions
The Group had previously recognised provisions following a data breach which
impacted the Group's website payment system. The provision related to the fine
received by the merchant service provider, and estimated costs associated
including potential fines from the ICO in respect of GDPR breaches and
associated legal and professional fees. Management used judgement in respect
of potential fees and fines and estimates to calculate the quantum of costs.
Freehold property
Freehold properties are held at valuation. When measuring the fair value of an
asset or liability, the Group uses observable market data as far as possible.
Fair values are categorised into different levels in a fair value hierarchy
based on the inputs used in the valuation techniques as follows:
· Level 1: quoted prices (unadjusted) in active markets for
identical assets or liabilities.
· Level 2: inputs other than quoted prices included in Level 1 that
are observable for the asset or liability, either directly (i.e.as prices) or
indirectly (i.e. derived from prices).
· Level 3: inputs for the asset or liability that are not based on
observable market data (unobservable inputs).
The fair value of investment property was determined by external, independent
property valuers, having appropriate recognised professional qualifications
and recent experience in the location and category of the property being
valued. The independent valuers provide the fair value of the Group's
investment property portfolio every 12 months.
Goodwill and other intangible assets arising from business combinations
On 21 March 2025 the Group acquired 100% of the voting equity instruments of
Ambala Food Limited. Accounting for the acquisitions has required management
to exercise judgement and make estimations in several areas as set out below.
When the Group obtains control of a business, the business combination is
accounted for using the acquisition method of accounting. By applying this
method all assets acquired, and liabilities assumed are to be measured at fair
value at acquisition date. The excess of the purchase consideration over the
fair value of the identifiable assets, liabilities and contingent liabilities
acquired (if any) is recognised as goodwill.
Goodwill is initially recognised as an asset at cost and is subsequently
measured at cost less any accumulated impairment losses. Goodwill is not
amortised but is tested annually for impairment, or more frequently if events
or changes in circumstances indicate that it might be impaired. For the
purpose of impairment testing, goodwill is allocated to each of the Group's
cash-generating units (CGUs) that are expected to benefit from the
combination.
Impairment is determined by comparing the recoverable amount of a CGU with the
carrying amount, including goodwill. If the recoverable amount is less than
the carrying amount, an impairment loss is recognised immediately in the
income statement and is not reversed in subsequent periods. If the fair values
of the net assets and liabilities assumed are more than the purchase
consideration, the excess is recognised as a bargain purchase gain immediately
in profit or loss.
The process followed involved:
· Purchase price allocation - the allocation of the purchase
considerations across group operations, which involves estimation as to the
value of each of the acquired group's operations, considering longer term
growth forecasts for each significant element of the business. This allocation
also involves performing cross-checks to ensure the integrity of the valuation
as a whole.
· Identifying the assets and liabilities acquired- identifying those
assets, both tangible and intangible, that existed at the time of the
transaction.
· Valuing individual assets and liabilities - depending on the nature
of the assets and liabilities, different valuation techniques were adopted to
value each in turn.
The most significant area where management have exercised judgement and made
estimations was in valuing the acquired brand and intellectual property. A
relief from royalty method was used taking account of an appropriate royalty
rate, UEL and discount rate, as well as cashflows from existing customers and
expected future growth.
2.2 Functional and presentation currency
The currency of the primary economic environment in which the Parent and its
subsidiaries operate (the functional currency) is Pound Sterling ("GBP or £")
which is also the presentation currency.
2.3 Basis of consolidation
Subsidiaries
Subsidiaries are entities controlled by the Group. The Group 'controls' an
entity when it is exposed to, or has rights to, variable returns from its
involvement with the entity and has the ability to affect those returns
through its power over the entity. The financial statements of subsidiaries
are included in the consolidated financial statements from the date on which
control commences until the date on which control ceases.
Changes in the Group's interest in a subsidiary that do not result in a loss
of control are accounted for as equity transactions.
Transactions eliminated on consolidation
Intra-group balances and transactions, and any unrealised income and expenses
arising from intra-group transactions, are eliminated.
A list of the significant investments in subsidiaries, including the name,
country of incorporation and proportion of ownership interest is given in Note
30 to the Company's separate financial statements.
2.4 Application of New and Revised IFRS's
At the date of authorisation of these financial statements the following
Standards and Interpretations were in issue and have been applied in these
financial statements. There has not been a material impact on the Group
following their application:
Effective Date
IAS 1 Amendments clarify how conditions with which an entity must comply within 1 January 2024
twelve months after the reporting period affect the classification of a
liability.
IAS 16 Amendments include requirements for sale and leaseback transactions in IFRS 16 1 January 2024
to explain how an entity accounts for a sale and leaseback after the date of
the transaction.
At the date of authorisation of these financial statements the following
Standards and Interpretations which have not been applied in these financial
statements were in issue but not yet effective and are not expected to have a
material impact on the Group:
Effective Date
IAS 21 Amendments include requirements for sale and leaseback transactions in IFRS 16 1 January 2025
to explain how an entity accounts for a sale and leaseback after the date of
the transaction.
IFRS 18 IFRS 18 is the future standard that replaces IAS 1 in its entirety and will 1 January 2027
thus deal with presentation of primary statements and notes. Some key impacts
are as follows:
· Improving structure of the statement of profit or loss by
requiring information to be classified in either operating, investing,
financing, taxation, or discontinued categories.
· Improving the requirements over the level of aggregation and
disaggregation of line items and the information in notes in order to provide
more useful information.
· Providing specific requirements over the reporting of additional
sub-totals, line items, and other aspects of presentation that relate to
alternative performance measures (for example non-IFRS measures).
IFRS 19 is a new standard that enables reduced disclosures in the IFRS
accounts of subsidiaries that do not have public accountability. IFRS 19 is
not relevant at this level of the Group as the Company is a parent and not a
subsidiary.
IFRS 19 1 January 2027
2.5 Segment reporting
Operating segments are reported in a manner consistent with the internal
reporting provided to the chief operating decision-maker ('CODM'). The CODM,
who is responsible for allocating resources and assessing performance of the
operating segments, has been identified as the executive directors that make
strategic decisions. Whilst the Group's trading has numerous components,
following the acquisition of Ambala, the CODM is of the opinion that there are
two operating segments. This is in line with internal reporting provided to
the executive directors.
2.6 Going concern
The Directors pay careful attention to the cost base of the Group ensuring not
only that it is kept at a level to satisfy the commercial requirements but
also that it remains appropriate to the level of activity of the Group and the
financial resources available to it.
The current cash balance was as at 30 March 2025 £6.3m (FY24: £8.5m), and
the Group continues to be cash generative.
Based on the current working capital forecast, there is no need to raise
additional funds as the Group considers that it is in a position where the
scenario of not meeting liabilities is remote. After making enquiries and
considering the assumptions upon which the forecasts have been based, the
directors have a reasonable expectation that the Group has adequate resources
to continue in operational existence for the period of at least twelve months
from the date of approval of these financial statements. For these reasons,
they continue to adopt the going concern basis of accounting in preparing the
annual financial statements.
2.7 Revenue recognition
The Group recognises revenue from the following major sources:
· Sale of sponges, fresh cream and other foods and goods to
franchisees
· Online commission on the sales of cakes and related products to
customers
· Franchise packages
· National marketing levy
· Sales of Asian confectionary and savoury products
Sale of sponges and related ingredients to franchisees
For sales of goods to franchisees, revenue is recognised when control of the
goods has transferred, being at the point at which the goods are dispatched
and delivered, which occurs on the same day. Payment of the transaction price
is due within seven days after statements are forwarded to franchisees. The
Group actively works with its franchisees to ensure credit terms are met and
if terms are required to be extended a suitable debt recovery plan is
agreed.
Online commission on the sales of cakes and related products to customers
Online sales which include click and collect sales, where the franchisee has
the primary responsibility for the fulfilment of the order and the Group is
collecting the consideration paid by the customers on behalf of the franchisee
as agent, are not recognised as revenue of the Group. Only the net commission
amount is recognised. Revenue is recognised at the date of order and payment
is taken at this point.
Franchise packages
The franchise packages consist of revenues which relate
to pre- and post-opening costs mainly for store fit-out; and initial set up
costs for pre-opening support, and franchisee and staff training.
The pre- and post-opening costs are required to get the
new franchisee trading and are therefore recognised at a point in time which
is at the end of the month in which trading commences. Each package is
tailored to a specific franchisee's needs and elements can be added or removed
as appropriate which will affect the price. The performance obligation of the
Group is met, when the store is handed over to the franchisee and he/she
accepts it and commences trading. The franchisee is then obligated to settle
the invoices raised by the Group for the costs incurred by the Group in
getting the store in a position where it can start trading. Included in the
franchise packages, is a franchise fee, the amount of which will depend on
whether it is a new or existing franchisee opening the new store.
Holding deposits received from franchisees for new stores are not treated as
revenue when received. The deposits are held under 'Other Payables' in the
Group's financial statements. If the new store is completed and the franchisee
accepts it and commences trading, the deposit is allocated against the costs
associated with the new store and recognised as revenue at this point. If the
new store does not proceed, the deposit is refunded to the franchisee.
National marketing Levy
Franchisees contribute a percentage of their franchise sales to the National
Marketing Fund managed by the Group. The purpose of the fund is to build
franchise sales through increased awareness of the Cake Box brand and the
website. For the funds received, the Group provides national marketing
initiatives and services. These performance obligations are considered to
constitute a revenue stream, and the contributions received by the Group are
therefore recognised as revenue. Revenue recognition is measured on an input
basis as the costs of providing the services are incurred. The Group provides
the services on a break-even basis, such that the fund does not retain a
long-term surplus or deficit. As such, the level of revenue and costs
recognised in respect of fulfilling the national marketing obligations are
equal. Any timing difference between contributions received and costs incurred
are held as a contract asset or liability on the Consolidated Statement of
Financial Position.
Sales of Asian confectionary and savoury products
For sales of Asian confectionary and savoury products, revenue is recognised
in the Point-Of-Sale software in stores, when payment (cash or credit/debit
card) is received from the customer. Online sales are recognised when payment
is received via credit and debit cards from customers. For wholesale sales to
stockists, sales are recognised when invoiced to third parties.
2.8 Current and deferred taxation
Current tax liabilities
Current tax for the current and prior periods is, to the extent unpaid,
recognised as a liability. If the amount already paid in respect of the
current and prior periods exceeds the amount due for those periods, the excess
is recognised as an asset, limited to the extent that it is probable that
taxable profits will be available against which those deductible temporary
differences can be utilised.
A provision is recognised for those matters for which the tax determination is
uncertain, but it is considered probable that there will be a future outflow
of funds to a tax authority. The provisions are measured at the best estimate
of the amount expected to become payable.
No material uncertain tax positions exist as at 30 March 2025. This assessment
relies on estimates and assumptions and may involve a series of complex
judgements about future events. To the extent that the final tax outcome of
these matters is different from the amounts recorded, such differences will
impact income tax expense in the period in which such determination is made.
Current taxes are calculated using tax rates and laws that are enacted or
substantively enacted at the reporting date.
Deferred Tax
Deferred tax is recognised on differences between the carrying amounts of
assets and liabilities in the financial statements and their corresponding tax
bases (known as temporary differences). Deferred tax liabilities are
recognised for all temporary differences that are expected to increase taxable
profit in the future. Deferred tax assets are recognised for all temporary
differences that are expected to reduce taxable profit in the future, and any
unused tax losses or unused tax credits, limited to the extent that it is
probable that taxable profits will be available against which those deductible
temporary differences can be utilised.
The net carrying amount of deferred tax assets is reviewed at each reporting
date and is adjusted to reflect the current assessment of future taxable
profits. Deferred tax is calculated at the tax rates that are expected to
apply to the taxable profit (tax loss) of the periods in which the Company
expects the deferred tax asset to be realised or the deferred tax liability to
be settled.
Deferred taxes are calculated using tax rates and laws that are enacted or
substantively enacted at the reporting date that are expected to apply as or
when the temporary differences reverses.
A deferred tax asset is recognised in respect of share-based payments to the
extent that the tax deduction is probable, and it relates to services already
received.
The asset is measured based on the expected future tax deduction under the
applicable tax rules (e.g. intrinsic value of share options at exercise), even
if the expense is recognised in equity for accounting purposes. Any excess
between the tax deduction and accounting expense is recognised in equity.
In a business combination, deferred tax is recognised on identifiable assets
acquired and liabilities assumed, where there is a difference between the fair
value and tax base at acquisition. For example, deferred tax liabilities have
been recognised on acquired intangible assets where the fair value uplift
exceeds their tax base. These liabilities are recognised as part of the
business combination accounting and increase the net identifiable liabilities,
which in turn increases the amount of goodwill recognised.
Deferred tax is not recognised on:
· the initial recognition of goodwill, because goodwill is a
residual and not an identifiable temporary difference
· temporary differences arising on the initial recognition of
assets or liabilities in a transaction that is not a business combination and
that affects neither accounting profit nor taxable profit
Deferred tax assets and liabilities are offset only where there is a legally
enforceable right to offset current tax assets against current tax
liabilities, and they relate to income taxes levied by the same taxation
authority on the same taxable entity.
Tax Expense
Income tax expense represents the sum of the tax currently payable and
deferred tax movement for the current period. The tax currently payable is
based on taxable profit for the year.
Income taxes are recognised in profit or loss unless they relate to items
recognised in other comprehensive income or equity, in which case the income
tax is recognised in other comprehensive income or equity respectively.
2.9 Property, Plant and Equipment - held at cost
Property, plant and equipment, other than freehold properties, are stated at
historical cost less accumulated depreciation and any accumulated impairment
losses. Historical cost includes expenditure that is directly attributable to
bringing the asset to the location and condition necessary for it to be
capable of operating in the manner intended by management.
Land is not depreciated. Depreciation on other assets is charged to allocate
the cost of assets less their residual value over their estimated useful
lives, using the straight‑line method.
Depreciation is provided on the following annual basis:
Freehold buildings - Over 40 to 50 years
Freehold property improvements - Over 4 to 30 years
Plant & machinery - Over 4 - 15 years
Motor vehicles - 4 years
Fixtures & fittings - Over 4 to 12 years
Assets under construction - Not depreciated
Assets under the course of construction are carried at cost less any
recognised impairment loss. Depreciation of these assets commences when the
assets become available for use.
The assets' residual values, useful lives and depreciation methods are
reviewed, and adjusted prospectively if appropriate, or if there is an
indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with
the carrying amount and are recognised in the profit or loss.
2.10 Property, plant and equipment - held at valuation
Individual freehold properties are carried at fair value at the date of the
revaluation less any subsequent accumulated depreciation and subsequent
impairment losses. Revaluations are undertaken with sufficient regularity to
ensure the carrying amount does not differ materially from that which would be
determined using fair value at each Consolidated Statement of Financial
Position date.
Fair values are determined by an independent valuer and updated by the
Directors from market-based evidence.
Revaluation gains are recognised in Other Comprehensive Income. Revaluation
losses are recognised in the profit and loss, unless the losses relate to
previously recognised gains, in which case it will be recognised in Other
Comprehensive Income. Any excess losses are recognised in the profit or loss.
2.11 Inventories
Inventories are stated at the lower of cost and net realisable value, being
the estimated selling price less costs to complete and sell. Cost is based on
the cost of purchase on a first in, first out basis.
2.12 Financial instruments
Recognition of Financial Instruments
Financial assets and financial liabilities are recognised when the Group
becomes party to the contractual provisions of the instrument.
Trade and other receivables
Trade and other receivables without a significant financing component are
initially measured at transaction price which approximates fair value at the
transaction date. All sales are made on the basis of normal credit terms, and
the receivables do not bear interest. Where credit is extended beyond normal
credit terms, receivables are measured at amortised cost using the effective
interest method. All trade receivables are subsequently measured at amortised
cost. At the end of each reporting period, the carrying amounts of trade and
other receivables are reviewed. Impairment allowance for current and
non-current trade receivables are recognised based on the simplified approach
within IFRS 9 using a provision matrix in the determination of the lifetime
expected credit losses. During this process the probability of the non-payment
of the trade receivables is assessed. This probability is then multiplied by
the amount of the expected loss arising from default to determine the lifetime
expected credit loss for the trade receivables. For trade receivables, which
are reported net, such allowances are recorded in a separate allowance account
with the loss being recognised in the statement of profit or loss. On
confirmation that the trade receivable will not be collectable, the gross
carrying value of the asset is written off against the associated provision.
Other financial assets
Included in other financial assets are loans to
franchisees. These loans are interest free, however include an arrangement
fee, at the discretion of the Group, which is spread over the term of the
loan. These loans have been discounted to fair value using a market rate. The
impact of this discounting has been recognised in finance costs. At the end of
each reporting period, the carrying amounts of other financial assets are
reviewed on an individual balance basis and appropriate impairments are made
if losses are anticipated. If a previously impaired balance is subsequently
received, the impairment is reversed through the profit and loss. See notes 27
and 28 for further details.
Trade and other payables
Trade and other payables are initially measured at fair value and subsequently
at amortised cost. Trade payables are obligations on the basis of normal
credit terms and do not bear interest. Trade payables denominated in a foreign
currency are translated into Sterling using the exchange rate at the reporting
date. Foreign exchange gains or losses are included in other income or other
expenses.
2.13 Financial instruments
Bank loans and overdrafts
All borrowings are initially recorded at fair value, net of transaction costs.
Borrowings are subsequently carried at amortised cost under the effective
interest method (EIR). The EIR method amortises transaction costs and spreads
interest expense over the relevant period, so that the interest expense in
each period represents a constant rate on the carrying amount of the
liability. Interest expense on the term loan is recognized in profit or loss
within finance costs using the EIR.
Borrowings are classified as current liabilities unless the Group has an
unconditional right to defer settlement of the liability for at least 12
months after the reporting date.
2.14 Finance costs and income
Finance costs are charged to the profit and loss over the term of the debt
using the effective interest method so that the amount charged is at a
constant rate on the carrying amount. Transaction costs are deducted from the
amount of the borrowing at initial recognition and are part of the effective
interest recognised in profit or loss.
Finance income is charged to the profit and loss on receipt or accrued if
there is a signed agreement in place.
2.15 Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and deposits with maturities
of three months or less from inception, and other short-term highly liquid
investments that are readily convertible to a known amount of cash and are
subject to an insignificant risk of changes in value.
Cash in transit, such as deposits sent to the bank, but not yet cleared or
settled at the reporting date, is included in cash and cash equivalents where
the Group retains the risks and rewards of ownership.
2.16 Dividends
Equity dividends are recognised when they become legally payable. Interim
equity dividends are recognised when paid. Final equity dividends are
recognised when approved by the shareholders at an Annual General Meeting.
2.17 Leases
The Group assesses whether a contract is, or contains, a lease, at inception
of the contract. The Group recognises a right-of-use asset and a corresponding
lease liability with respect to all lease arrangements in which it is the
lessee, except for short-term leases (defined as leases with a lease term of
12 months or less) and leases of low value assets (such as tablets and
personal computers, small items of office furniture and telephones). For these
leases, the Group recognises the lease payments as an operating expense on a
straight-line basis over the term of the lease unless another systematic basis
is more representative of the time pattern in which economic benefits from the
leased assets are consumed.
The lease liability is initially measured at the present value of the lease
payments that are not paid at the commencement date, discounted by using the
Group's incremental borrowing rate.
Lease payments included in the measurement of the lease liability comprise:
· fixed lease payments (including in-substance fixed payments), less
any lease incentives receivable;
· variable lease payments that depend on an index or rate, initially
measured using the index or rate at the commencement date;
· the amount expected to be payable by the lessee under residual
value guarantees;
· the exercise price of purchase options if the lessee is
reasonably certain to exercise the options; and
· payments of penalties for terminating the lease, if the lease term
reflects the exercise of an option to terminate the lease.
The lease liability is presented as a separate line in the Consolidated
Statement of Financial Position.
The lease liability is subsequently measured by increasing the carrying amount
to reflect interest on the lease liability (at a constant rate) and by
reducing the carrying amount to reflect the lease payments made.
The Group remeasures the lease liability (and makes a corresponding adjustment
to the related right-of-use asset) whenever:
· The lease term has changed or there is a significant event or
change in circumstances resulting in a change in the assessment of exercise of
a purchase option, in which case the lease liability is remeasured by
discounting the revised lease payments using a revised discount rate
· The lease payments change due to changes in an index or rate or a
change in expected payment under a guaranteed residual value, in which cases
the lease liability is remeasured by discounting the revised lease payments
using a revised discount rate (unless the lease payments change is due to a
change in a floating interest rate, in which case a revised discount rate is
used)
· A lease contract is modified, and the lease modification is not
accounted for as a separate lease, in which case the lease liability is
remeasured based on the lease term of the modified lease by discounting the
revised lease payments using a revised discount rate at the effective date of
the modification
The Group did not make any such adjustments during the periods presented.
The right-of-use assets comprise the initial measurement of the corresponding
lease liability, lease payments made at or before the commencement day, less
any lease incentives received and any initial direct costs. They are
subsequently measured at cost less accumulated depreciation and impairment
losses.
Whenever the Group incurs an obligation for costs to dismantle and remove a
leased asset, restore the site on which it is located or restore the
underlying asset to the condition required by the terms and conditions of the
lease, a provision is recognised and measured under IAS 37. To the extent that
the costs relate to a right-of-use asset, the costs are included in the
related right-of-use asset, unless those costs are incurred to produce
inventories.
Right-of-use assets are depreciated over the shorter period of lease term and
useful life of the right-of-use asset. Right-of-use assets currently in use
are depreciated over 10 years, which is the term of the lease.
If a lease transfers ownership of the underlying asset or the cost of the
right-of-use asset reflects that the Group expects to exercise a purchase
option, the related right-of-use asset is depreciated over the useful life of
the underlying asset. The depreciation starts at the commencement date of the
lease.
The right-of-use assets are presented as a separate line in the consolidated
statement of financial position. The Group applies IAS 36 to determine whether
a right-of-use asset is impaired and accounts for any identified impairment
loss as described in the 'Property, Plant and Equipment' policy.
2.18 Employee benefits
Short Term Employee Benefits
The cost of short-term employee benefits, (those payable within 12 months
after the service is rendered, such as leave pay and sick leave, bonuses, and
non-monetary benefits such as medical care), are recognised in the period in
which the service is rendered and are not discounted.
Defined contribution pension plan
The Group operates a defined contribution plan for its staff. A defined
contribution plan is a pension plan under which the Group pays fixed
contributions into a separate entity. Once the contributions have been paid
the Group has no further payment obligations.
The contributions are recognised as an expense in the profit or loss when they
fall due. Amounts not paid are shown in accruals as a liability in the
Consolidated Statement of Financial Position. The assets of the plan are held
separately from the Group in independently administered funds.
Termination benefits
The entity recognises the expense and corresponding liability for termination
benefits when it is demonstrably committed to either of the following
scenarios:
a. The termination of the employment of an employee or group of staff
before the normal retirement age, or
b. The provision of termination benefits in relation to an offer made
to encourage voluntary redundancy.
The value of such benefit is measured at the best estimate of the expenditure
required to settle the obligation at the reporting date.
2.19 Provisions and contingencies
Provisions are recognised when the Group has an obligation at the reporting
date as a result of a past event; it is probable that the Group will be
required to transfer economic benefits in settlement; and the amount of the
obligation can be estimated reliably.
Provisions are measured at the present value of the amount expected to be
required to settle the obligation using a pre-tax rate that reflects current
market assessments of the time value of money and the risks to a specific
obligation. The increase in the provision due to the passage of time is
recognised as interest expense.
Provisions are not recognised for future operating losses.
Contingent liabilities are not recognised in the consolidated financial
statements. They are disclosed if the possibility of an outflow of resources
embodying economic benefit is remote. A contingent asset is not recognised
in the consolidated financial statements but disclosed when an inflow of
economic benefit is probable.
2.20 Share capital
Ordinary shares are classified as equity. Equity instruments are measured at
the fair value of the cash or other resources received or receivable, net of
the direct costs of issuing the equity instruments. If payment is deferred and
the time value of money is material, the initial measurement is on a present
value basis.
2.21 Research and development
Research and development expenditure is charged to the Consolidated Statement
of Comprehensive Income in the year in which it is incurred. The expenditure
does not meet the definition of 'Development' under IAS 38.
2.22 Fair value measurement
When an asset or liability, financial or non-financial, is measured at fair
value for recognition or disclosure purposes, the fair value is based on the
price that would be received to sell an asset or paid to transfer a liability
in an orderly transaction between market participants at the measurement date;
and assumes that the transaction will take place either: in the principal
market; or in the absence of a principal market, in the most advantageous
market.
Fair value is measured using the assumptions that market participants would
use when pricing the asset or liability, assuming they act in their economic
best interests. For non-financial assets, the fair value measurement is based
on its highest and best use. Valuation techniques that are appropriate in the
circumstances and for which sufficient data are available to measure fair
value, are used, maximising the use of relevant observable inputs and
minimising the use of unobservable inputs.
Assets and liabilities measured at fair value are classified into three
levels, using a fair value hierarchy that reflects the significance of the
inputs used in making the measurements. Classifications are reviewed at each
reporting date and transfers between levels are determined based on a
reassessment of the lowest level of input that is significant to the fair
value measurement.
For recurring and non-recurring fair value measurements, external valuers may
be used when internal expertise is either not available or when the valuation
is deemed to be significant. External valuers are selected based on market
knowledge and reputation. Where there is a significant change in fair value of
an asset or liability from one period to another, an analysis is undertaken,
which includes a verification of the major inputs applied in the latest
valuation and a comparison, where applicable, with external sources of data.
2.23 Share-based payments
Where share options are awarded to staff, the fair value of the options
(measured using the Black-Scholes model) at the date of grant is charged to
the profit and loss over the vesting period. Non-market vesting conditions are
considered by adjusting the number of equity instruments expected to vest at
each reporting date so that, ultimately, the cumulative amount recognised over
the vesting period is based on the number of options that eventually vest.
Market vesting conditions are factored into the fair value of the options
granted. The cumulative expense is not adjusted for failure to achieve a
market vesting condition.
The fair value of the award also considers non-vesting conditions. These are
either factors beyond the control of either party or factors which are within
the control of one or another of the parties. Where the terms and conditions
of options are modified before they vest, the increase in the fair value of
the options, measured immediately before and after the modification, is also
charged to profit or loss over the remaining vesting period.
Lapsed share options are derecognised as soon as it is known that vesting
conditions will not be met. Previous charges to the Statement of Comprehensive
Income are credited back to this statement.
2.24 Exceptional items
Exceptional items are transactions that fall within the ordinary activities of
the Group but are presented separately due to their size or incidence.
2.25 Impairment of non-financial assets
Non-financial assets
At each reporting date, the Group reviews the carrying amounts of its
non-financial assets to determine whether there is any indication of
impairment. If any such indication exists, then the asset's recoverable
amount is estimated. For impairment testing, assets are grouped together into
the smallest group of assets that generates cash inflows from continuing use
that are largely independent of the cash inflows or other assets of CGUs.
The recoverable amount of an asset or CGU is the greater of its value in use
and its fair value less costs of disposal. Value in use is based on the
estimated future cash flows, discounted to their present value using a pre-tax
discount rate that reflects current market assessments of the time value of
money and the risks specific to the asset or CGU. An impairment loss is
recognised if the carrying amount of an asset or CGU exceeds its recoverable
amount. Impairment losses are recognised in profit or loss. They are
allocated first to reduce the carrying amount of any goodwill allocated to the
CGU, and then to reduce the carrying amounts of the other asset in the CGU on
a pro rate basis. An impairment loss is reversed only to the extent that the
asset's carrying amount does not exceed the carrying amount that would have
been determined, net of depreciation or amortisation, if no impairment loss
had been recognised.
2.26 Intangible assets
Intangible Assets Policy
Intangible assets acquired separately are measured on initial recognition at
cost. The cost of intangible assets acquired in a business combination is the
fair value at the date of acquisition. Following initial recognition,
intangible assets are carried at cost less any accumulated amortisation and
accumulated impairment losses. Internally generated intangibles, excluding
capitalised development costs, are not capitalised and the related expenditure
is reflected in profit or loss in the period in which the expenditure is
incurred.
2.26.1. Recognition and Initial Measurement:
a. Goodwill
Goodwill is initially measured at cost, being the excess of the aggregate of
the acquisition-date fair value of the consideration transferred over the net
identifiable amounts of the assets acquired and the liabilities assumed in
exchange for the business combination.
b. Externally acquired Brand and Intellectual Property
Brands and intellectual property (including trademarks, patents, copyrights,
and proprietary technologies) acquired separately or through a business
combination are recognised as intangible assets when they meet the recognition
criteria: identifiability, control over the asset, and the existence of future
economic benefits. The fair value is derived based on discounted cash flows
from estimated recurring revenue streams. The carrying value is stated at fair
value at acquisition less accumulated amortisation and impairment losses.
c. Website Costs
Expenditures related to developing or acquiring a website should be
capitalised when they meet the following criteria:
- It is probable that the future economic benefits associated with
the website will flow to the organisation.
- The costs of the website can be reliably measured.
- Website costs should be amortised over their estimated useful life
or expensed if they have a short useful life.
d. Software
Software costs should be capitalised if they meet the following
criteria:
- The software is intended for internal use.
- It is probable that the organisation will derive future economic
benefits from the software.
- The costs of the software can be reliably measured.
- Capitalised software costs should be amortised over their
estimated useful life or expensed if they have a short useful life.
e. ERP Systems
The costs related to acquiring, implementing, and customising an Enterprise
Resource Planning (ERP) system should be capitalised if they meet the
following criteria:
- The ERP system is intended for internal use.
- It is probable that the organisation will derive future economic
benefits from the ERP system.
- The costs of the ERP system can be reliably measured.
- Capitalised ERP system costs should be amortised over their
estimated useful life or expensed if they have a short useful life.
2.26.2. Subsequent Expenditure
Subsequent expenditures related to intangible assets, such as enhancements,
upgrades, or additions, should be evaluated to determine if they meet the
criteria for capitalisation. If the subsequent expenditure enhances the future
economic benefits or extends the useful life of the asset, it should be
capitalised and added to the carrying amount of the asset. Otherwise, the
expenditure should be expensed as incurred.
2.26.3. Amortisation
Intangible assets subject to amortisation are amortised over their estimated
useful lives. The amortisation method is applied consistently and reflects the
pattern in which the asset's economic benefits are consumed or utilised. The
amortisation expense is recorded in the organisation's financial statements.
The estimated useful lives for current and comparative periods
are as follows:
-
Goodwill
- not amortised, tested annually for impairment
-
Brand
- 20 years
- Intellectual
Property - 20 years
-
Website
- 4 years
-
Software
- 4 years
-
ERP
- 4 years
2.26.4. Monitoring and Impairment Testing
a. Regular Reviews:
Periodic reviews are conducted to assess the ongoing value and useful life of
intangible assets. Changes in market conditions, technology advancements, or
other factors are considered during these reviews.
b. Impairment Testing:
If indicators of impairment exist, such as a significant decline in the
asset's market value or changes in the asset's usefulness, an impairment test
is performed. If an impairment is identified, the asset's carrying amount is
reduced to its recoverable amount, and an impairment loss is recognised in the
financial statements.
3. Segment reporting
Following the acquisition of Ambala Foods Limited, cash generating units
reported to the CODM are separately identifiable and as such the Group
considers there to be two reporting segments, Cake Box and Ambala. These are
considered the Group's operating segments as the information provided to the
Board, is based on these two business units. Revenue included in each segment
includes all sales made to franchise stores and by corporate stores located in
that segment. All sales occurred in the United Kingdom for both segments and
financial periods. The Group was not reliant upon any major customer during
2025 or 2024.
Segment assets and liabilities
At 30 March 2025 At 31 March 2024
Cake Box Ambala Total Cake Box Ambala Total
£ £ £ £ £ £
Segment assets
Segment current assets 13,143,397 3,591,548 16,734,945 15,688,939 - 15,688,939
Segment non-current assets 38,947,740 5,560,743 44,508,483 15,047,061 - 15,047,061
Total assets 52,091,137 9,152,291 61,243,428 30,736,000 - 30,736,000
Segment liabilities
Segment current liabilities 9,256,186 3,321,396 12,577,582 6,267,720 - 6,267,720
Segment non-current liabilities 17,553,718 4,119,759 21,673,477 5,167,591 - 5,167,591
Total liabilities 26,809,904 7,441,155 34,251,059 11,435,311 - 11,435,311
Segment performance
52 weeks ended 30 March 2025 2024
Cake Box Ambala Total Cake Box Ambala Total
£ £ £ £ £ £
Segment Revenue 41,939,913 840,713 42,780,626 37,844,963 - 37,844,963
Results
Underlying result 7,268,975 87,859 7,356,834 6,180,067 - 6,180,067
Exceptional items (919,722) - (919,722) 243,100 - 243,100
Profit before income tax 6,349,253 87,859 6,437,112 6,423,167 - 6,423,167
Net finance costs (284,172) - (284,172) (157,740) (157,740)
Profit before income tax 6,065,081 87,859 6,152,940 6,265,427 - 6,265,427
Income tax expense (1,726,006) (53,642) (1,779,648) (1,606,742) - (1,606,742)
Profit after income tax 4,339,075 34,217 4,373,292 4,658,685 - 4,658,685
Effective tax rate 28.5% 61.1% 28.9% 25.6% - 25.6%
Other segment information:
- Depreciation 1,232,520 6,919 1,239,439 1,156,222 - 1,156,222
- Amortisation 136,621 - 136,621 106,810 - 106,810
Total depreciation and amortisation 1,369,141 6,919 1,376,060 1,263,032 - 1,263,032
EBITDA 7,718,394 94,778 7,813,172 7,686,199 - 7,686,199
Underlying EBITDA 8,638,116 94,778 8,732,894 7,443,099 - 7,443,099
Revenue disclosures
Sales of sponge 17,699,493 - 17,699,493 14,983,166 - 14,983,166
Sales of food 7,436,112 - 7,436,112 6,700,487 - 6,700,487
Sales of fresh cream 4,223,739 - 4,223,739 4,082,584 - 4,082,584
Sales of other goods 8,745,817 - 8,745,817 7,824,308 - 7,824,308
Franchise packages 3,834,752 - 3,834,752 2,484,043 - 2,484,043
Online sales commission - - - 1,100,711 - 1,100,711
Marketing levy - - - 669,664 - 669,664
Sales from Corporate Stores - 785,157 785,157 - - -
Online sales direct to customers - 31,760 31,760 - - -
Wholesale sales - 23,796 23,796 - - -
Total segment revenue 41,939,913 840,713 42,780,626 37,844,963 - 37,844,963
4. Expenses by nature
The Administrative expenses have been arrived at after charging/(crediting):
52 weeks ended 30 March 2025 2024
£ £
Wages and salaries 8,454,223 7,609,081
Travel and entertaining costs 635,387 613,284
Supplies costs 819,764 801,291
Professional costs 1,019,830 1,236,911
Depreciation of property, plant, and equipment 939,499 856,282
Amortisation of intangible assets 136,621 106,810
Depreciation of right-of-use assets 299,940 299,940
Rates and utilities costs 590,256 657,601
Property maintenance costs 317,398 328,279
Advertising costs 1,824,621 1,377,584
Other costs 67,573 60,631
15,105,112 13,947,694
Impairment of receivables (see Note 27) (5,000) (187,856)
Exceptional items (see Note 10) 919,722 (243,100)
16,019,834 13,516,738
5. Operating profit
The operating profit is stated after charging/(crediting):
52 weeks ended 30 March 2025 2024
£ £
Depreciation of property, plant, and equipment 939,499 856,282
Amortisation of intangible assets 136,621 106,810
Depreciation of right-of-use assets 299,940 299,940
Inventory recognised as an expense 20,323,680 17,905,058
Loss/(Profit) on disposal of property, plant & equipment (21,390) 13,606
Fees payable to the Group's auditor and its associates for the audit of the 200,000 105,000
Group's annual financial statements
Fees payable to the Group's auditor and its associates for the audit of the - 17,600
Group's prior year annual financial statements
Fees payable to the Group's auditor and its associates for the audit of the 13,000 13,000
Group's interim financial statements
Share based payment expense 215,381 93,445
6. Net finance costs
52 weeks ended 30 March 2025 2024
£ £
Finance expenses
Bank loan interest 110,170 82,050
Finance lease interest 84,575 94,881
Other interest paid 36,092 14,704
Finance cost of discounted other financial assets 202,730 119,250
433,567 310,885
Finance income
Bank interest receivable (148,802) (153,145)
Other interest receivable (593) -
(149,395) (153,145)
Net finance costs 284,172 157,740
7. Staff costs
Staff costs, including directors' remuneration, were as follows:
52 weeks ended 30 March 2025 2024
£ £
Wages and salaries 7,253,015 6,638,952
Social security costs 750,003 670,237
Pension costs 98,970 84,208
Private health 136,854 122,239
8,238,842 7,515,636
Share-based payment expense 215,381 93,445
8,454,223 7,609,081
The average monthly number of staff, including directors, for the year was 185
(2024:173).
The breakdown by department is as follows:
52 weeks ended 30 March 2025 2024
Directors 7 7
Administration 47 42
Maintenance 19 20
Production & Logistics 112 104
185 173
8. Dividends
52 weeks ended 30 March 2025 2024
£ £
Interim dividend of 3.4p per ordinary share 1,360,000 -
Final dividend of 6.1p per ordinary share proposed and paid during the year 2,440,000 -
relating to the previous year's results
Interim dividend of 2.9p per ordinary share - 1,160,000
Final dividend of 5.5p per ordinary share proposed and paid during the year - 2,200,000
relating to the previous year's results
3,800,000 3,360,000
9. Directors' remuneration and key management personnel
The Directors' remuneration is disclosed within the Directors' Remuneration
Report. The Executive Directors and Non-Executive directors are considered key
management personnel. Employers NIC paid on Directors' remuneration in the
year was £165,384 (2024: £110,431).
10. Exceptional items
52 weeks ended 30 March 2025 2024
£ £
Reversal of provision relating to website data breach - (243,100)
Impairment of website costs 176,935 -
Professional fees and costs relating to the acquisition of Ambala Foods 742,787 -
Limited
919,722 (243,100)
During the period, the Group acquired 100% of the share capital of Ambala
Foods Limited, a producer and retailer of Asian confectionary and savoury
products. As part of the process, the Group incurred one-off professional fees
and costs relating to the transaction.
As a result of the Group launching its new website during the period, a
one-off impairment of the costs to develop the previous website has been
accounted for.
The prior year exceptional item relates to a provision for estimated costs and
fines with regards to a website data breach during 2021. During the 2024
financial year, based on the information submitted to the Information
Commissioner's Office ("ICO") regarding the Group's security measures in place
to prevent similar breaches, the ICO informed the Company that it would not be
pursuing enforcement action in this case and consider the case closed.
11. Taxation
52 weeks ended 30 March 2025 2024
£ £
Corporation tax
Current tax on profits for the year 1,615,776 1,483,512
Adjustments in respect of previous periods 14,466 -
Deferred tax
Arising from origination and reversal of temporary differences 259,814 62,065
Adjustments in respect of previous periods (110,408) 61,165
Taxation on profit on ordinary activities 1,779,648 1,606,742
Factors affecting tax charge for the year
The effective tax rate for the financial period is 29.8% (2024: 25.6%), which
is higher than the standard rate of corporation tax in the UK of 25.0% (2024:
25.0%). The differences are explained below:
52 weeks ended 30 March 2025 2024
£ £
Profit on ordinary activities before tax 6,152,940 6,265,427
Profit on ordinary activities multiplied by standard rate of corporation tax 1,538,235 1,566,357
in the UK of 25% (FY24: 25%)
Effects of:
Expenses not deductible for tax purposes, other than goodwill amortisation and 390,451 35,882
impairment
Income not taxable - (56,662)
Share options (53,096) -
Adjustments to tax in respect of prior periods (95,942) 61,165
Total tax charge for the year 1,779,648 1,606,742
12. Deferred taxation
52 weeks ended 30 March 2025 2024
£ £
Balance brought forward 2,021,128 1,843,924
Charged to other comprehensive income:
Deferred tax on revalued freehold property 38,727 55,795
On acquisition of subsidiary
Accelerated capital allowances 516,665
-
Intangible asset 247,418
-
Charged directly to reserves:
Employee benefits (including share-based payments) (54,832) (1,821)
Charged to profit and loss:
Accelerated capital allowances 311,042 82,681
Tax rate changes - -
Share-based payments (53,096) (23,361)
Adjustments in respect of prior periods (110,408) 64,734
Other short-term timing differences 1,868 (824)
Balance carried forward 2,918,512 2,021,128
52 weeks ended 30 March 2025 2024
£ £
Deferred tax liabilities
Accelerated capital allowances 1,439,006 717,772
Acquisition of subsidiary - intangible asset (note 21) 247,418 -
Other short-term timing differences (7,118) (5,052)
Share-based payments (133,111) (25,182)
Property valuations (including indexation) 1,372,317 1,333,590
2,918,512 2,021,128
Movements in deferred tax in direct relation to freehold property revaluation
are recognised immediately in the Consolidated Statement of Comprehensive
Income, under other comprehensive income for the year.
13. Property, plant, and equipment
Assets under construction Freehold Land and Buildings Freehold improvements Plant & machinery Motor vehicles Fixtures & fittings Total
£ £ £ £ £ £ £
Cost or valuation
At 1 April 2023 - 9,214,099 788,130 943,386 1,402,416 2,399,519 14,747,550
Additions - - 193,672 91,101 251,422 356,031 892,226
Disposals - - - (53,492) (105,585) - (159,077)
Revaluations - (339,099) - - - - (339,099)
At 31 March 2024 - 8,875,000 981,802 980,995 1,548,253 2,755,550 15,141,600
Depreciation
At 1 April 2023 - 499,099 121,132 841,936 699,881 1,317,719 3,479,767
Charge for the year - 63,178 168,109 56,801 305,705 262,489 856,282
Disposals - - - (25,896) (86,469) - (112,365)
Revaluations - (562,277) - - - - (562,277)
At 31 March 2024 - - 289,241 872,841 919,117 1,580,208 3,661,407
Net book value
At 31 March 2024 - 8,875,000 692,561 108,154 629,136 1,175,342 11,480,193
Assets under construction Freehold Land and Building Freehold improvements Plant & machinery Motor vehicles Fixtures & fittings Total
£ £ £ £ £ £ £
Cost or valuation
At 1 April 2024 - 8,875,000 981,802 980,995 1,548,253 2,755,550 15,141,600
Additions 1,052,175 6,319,860 198,894 39,715 347,889 418,473 8,377,006
Acquisition of subsidiary - - 331,802 2,910,477 161,079 - 3,403,358
Disposals - - - - (130,515) - (130,515)
Revaluations - 154,907 - - - - 154,907
At 30 March 2025 1,052,175 15,349,767 1,512,498 3,931,187 1,926,706 3,174,023 26,946,356
Depreciation
At 1 April 2024 - - 289,241 872,841 919,117 1,580,208 3,661,407
Charge for the year - 69,907 177,745 65,230 328,437 298,180 939,499
Acquisition of subsidiary - - 19,736 1,735,898 80,396 - 1,836,030
Disposals - - - - (126,875) - (126,875)
At 30 March 2025 - 69,907 486,722 2,673,969 1,201,075 1,878,388 6,310,061
Net book value
At 30 March 2025 1,052,175 15,279,860 1,025,776 1,257,218 725,631 1,295,635 20,636,295
The Freehold Land and Building column in the above note has been disclosed on
a net basis as this gives a clearer understanding of the revaluation effect on
the asset class in the year and for the future periods.
As at 30 March 2025, all freehold property was valued by independent third
party qualified valuers, in accordance with the RICS Valuation - Global
Standards 2017 (the Red Book). During their valuation, the valuers have
considered the various geographical areas the properties are located in and
the market values of similar properties in the same areas. The Directors
believe these valuations to be representative of the fair value as at 30 March
2025.
The fair value of freehold property is categorised as a level 3 recurring fair
value measurement.
The following table summarises the quantitative information about the
significant unobservable inputs used in recurring level 3 fair value
measurements:
Fair value at 30 March 2025 Valuation technique Sq ft Rate per sq ft - average
£
Property
Enfield 7,050,000 Vacant possession 39,121 180
Coventry 1,285,000 Vacant possession 13,000
92
Bradford 625,000 Vacant possession 9,358
67
Welwyn Garden City 6,319,860 Vacant possession 41,975 150
Total 15,279,860
If the Freehold properties had been accounted for under the historic cost
accounting rules, the properties would have been measured as follows:
52 weeks ended 30 March 2025 2024
£ £
Historic cost
As at 01 April 2024 and 01 April 2023 3,433,746 3,433,746
Additions 6,319,860 -
As at 30 March 2025 and 31 March 2024 9,753,606 3,433,746
14. Intangible assets
Goodwill Brand Website Software ERP system Total
£ £ £ £ £ £
Cost
At 1 April 2023 - - 434,102 78,628 121,498 634,228
External design work - - 133,881 111,000 209,039 453,920
Disposals - - (22,215) - - (22,215)
At 31 March 2024 - - 545,768 189,628 330,537 1,065,933
Amortisation
At 1 April 2023 - - 136,572 59,101 39,369 235,042
Charge for the year - - 83,293 9,201 14,316 106,810
Impairments - - (3,702) - - (3,702)
At 31 March 2024 - - 216,163 68,302 53,685 338,150
Balance at 31 March 2024 - - 329,605 121,326 276,852 727,783
Goodwill Brand Website Software ERP system Total
£ £ £ £ £ £
Cost
At 1 April 2024 - - 545,768 189,628 330,537 1,065,933
External design work - - 577,193 115,221 315,889 1,008,303
Acquisition of subsidiary 13,763,142 989,672 - - - 14,752,814
Impairments - - (327,561) - - (327,561)
At 30 March 2025 13,763,142 989,672 795,400 304,849 646,426 16,499,489
Amortisation
At 1 April 2024 - - 216,163 68,302 53,685 338,150
Charge for the year - - 108,422 24,620 3,579 136,621
Impairments - - (150,626) - - (150,626)
At 30 March 2025 - - 173,959 92,922 57,264 324,145
At 30 March 2025 13,763,142 989,672 621,441 211,927 589,162 16,175,344
For the purpose of impairment testing, assets that cannot be tested
individually are grouped together into the smallest group of assets that
generate cash inflows from continuing use that are largely independent of the
cash inflows of other assets or groups of assets (the "cash-generating unit").
The goodwill acquired in a business combination is allocated to
cash-generating units, or ("CGU"). Subject to an operating segment ceiling
test, for the purposes of goodwill impairment testing, CGUs, to which goodwill
has been allocated are aggregated so that the level at which impairment is
tested reflects the lowest level at which goodwill is monitored for internal
reporting purposes. Goodwill acquired in a business combination is allocated
to groups of CGUs that are expected to benefit from the synergies of the
combination.
The Group completed the acquisition of 100% of the shareholding in Ambala
Foods Limited on 21 March 2025, resulting in the recognition of goodwill of
£12,385,721. The goodwill is attributable to the expected synergies,
workforce and future growth potential of Ambala.
As the acquisition occurred close to the financial period end, a full detailed
impairment testing of goodwill has not been completed as at 30 March 2025. The
Board considers this a reasonable approach given the proximity of the
acquisition to the financial period end reporting date. A detailed purchase
price allocation ('PPA') was completed, and goodwill has been allocated to the
Ambala CGU.
As the acquisition occurred shortly before the financial period reporting
date, no impairment indicators were identified. The Group will perform tis
first formal impairment test of the goodwill no later than the end of the
following financial period, ending on 29 March 2026.
When performed, the impairment review will be based on value-in-use
calculations derived from management-approved forecasts. Key assumptions will
include:
· Discount rate - 22.2%, based on the Group's internal weight of
return adjusted for CGU-specific risks.
· Growth rate - 2.3%, reflecting long-term market growth
expectations.
· Forecast period - 5 years, consistent with internal strategic
plans.
· Revenue growth assumptions - based on past performance and future
expectations specific to the CGU/market.
The assumptions are subject to change as more detailed forecasts and
integration planning are completed.
At the time of reporting, the sensitivity analysis has not been conducted as
the impairment test was not yet performed. Upon completion of the impairment
review, sensitivity analysis will be disclosed, including:
· The impact of a +/- 1% change in the discount rate.
· The impact of a +/- 1% change in the growth rate.
· The headroom under the base-case assumptions.
· The amount by which key assumptions must change for goodwill
impairment to occur.
This analysis will be included in the following annual report for the
financial period ending on 29 March 2026.
There have been no events after the reporting date that indicate impairment of
goodwill is likely.
15. Leases
The Consolidated Statement of Financial Position shows the following amounts
in relation to leases:
Properties
£
Cost
At 1 April 2024 2,999,405
Additions - Acquisition of subsidiary 4,000,334
At 30 March 2025 6,999,739
Depreciation
At 1 April 2024 724,855
Charge for the year 299,940
At 30 March 2025 1,024,795
Net book value
At 31 March 2024 2,274,550
At 30 March 2025 5,974,944
52 weeks ended 30 March 2025 2024
£ £
Lease liabilities
Current 688,363 280,425
Non-Current 5,461,384 2,149,413
6,149,747 2,429,838
The Group's obligations are secured by the lessor's title to the leased assets
for such leases.
Amounts recognised in the Consolidated Statement of Comprehensive Income are
as follows:
52 weeks ended 30 March 2025 2024
£ £
Amortisation expense of right-of-use assets 299,940 299,940
Interest expense on lease liabilities 84,575 94,881
The total cash outflow for leases amount to £365,000 (2024: £365,000).
16. Inventories
52 weeks ended 30 March 2025 2024
£ £
Raw materials 1,152,318 361,842
Goods held for resale 2,505,460 2,230,996
3,657,778 2,592,838
Inventories are charged to cost of sales in the Consolidated Statement of
Comprehensive Income. Inventories have been disclosed between raw materials
for production purposes and goods held for resale.
17. Trade and other receivables
52 weeks ended 30 March 2025 2024
£ £
Trade receivables 2,572,825 3,532,253
Impairment allowance (87,569) (92,569)
Trade receivables net of impairment allowance 2,485,256 3,439,684
Other receivables 894,393 266,508
3,379,649 3,706,192
Current tax receivable 506,276 -
Prepayments 1,529,470 447,992
5,415,395 4,154,184
The fair value of those trade and other receivables classified as financial
assets at amortised cost are disclosed in the financial instruments note
(note 27).
The Group's exposure to credit and market risks, including impairments and
allowances for credit losses, relating to trade and other receivables, is
disclosed in the financial risk management and impairment of financial assets
note (note 28).
Trade receivables are non-interest bearing, are generally on 14-day terms and
are shown net of impairment allowance. Management's assessment is that a loss
allowance of £87,569 (FY24: £92,569) is required against some receivables
from franchisees.
The age profile of the trade receivables is shown in note 27.
18. Other financial assets
52 weeks ended 30 March 2025 2024
£ £
Current 1,335,998 487,652
Non-current 1,721,900 564,535
3,057,898 1,052,187
52 weeks ended 30 March 2025 2024
£ £
Total loans to franchisees 3,057,898 1,052,187
Other financial assets consist of loans to franchisees. Loans are interest
free and payable in equal monthly instalments. All non-current assets are due
within five years of the statement of financial position date. The carrying
amount of the loans are valued at fair value at market rates. See note 27
(Financial Instruments) and 28 (Financial Risk Management) for further
information regarding the impairment of Other Financial Assets.
19. Share capital
52 weeks ended 30 March 2025 2024
Number £ Number £
Ordinary shares of £0.01 each
At 01 April 2024 and 01 April 2023 40,000,000 400,000 40,000,000 400,000
Share issue during the period 4,000,000 40,000 - -
At 30 March 2025 and 31 March 2024 44,000,000 440,000 40,000,000 400,000
During the financial period, the Company issued 4,000,000 new shares of
£0.01p each, for a total consideration of £7,200,000, for the purpose of
part funding the acquisition of Ambala Foods Limited. The excess of
£7,160,000 above the par value of the shares issued, has been reflected in
the share premium account.
All of the ordinary shares of £0.01 each carry voting rights, the right to
participate in dividends, and entitle the shareholders to a pro-rata share of
assets on a winding up.
20. Reserves
The following describes the nature and purpose of each reserve within equity:
Capital redemption reserve
Amounts transferred from share capital on redemption of issued shares. Balance
as at 30 March 2025 £40 (2024: £40).
Share premium account
The share premium account arose during the financial period in connection with
the acquisition of Ambala Foods Limited, a wholly owned subsidiary acquired
partly through the issue of 4,000,000 new equity shares at £1.80 each. Costs
of £468,005, directly attributable to the new equity issue have been offset
against the share premium account. Balance as at 30 March 2025 £6,691,995
(2024: £NIL).
Revaluation reserve
Gain/(losses) arising on the revaluation of the Group's properties (other than
investment property). Balance as at 30 March 2025 £3,733,218 (2024:
£3,617,038).
Retained earnings
All other net gains and losses and transactions with owners (e.g. dividends,
fair value movements of investment property) not recognised elsewhere. Balance
as at 30 March 2025 £15,761,637 (2024; £15,188,345).
Share option reserve
The share option reserve represents the movement in cost of equity-settled
transactions in relation to the long-term incentive plans. See note 22 for
more information. Balance as at 30 March 2025 £365,479 (2024: £95,266).
21. Business combinations
On 21 March 2025 the Group acquired 100% of the voting equity instruments of
Ambala Food Limited, a company whose principal activity is the production and
sale of Asian confectionery and savoury brands.
Recognisable amounts of identifiable assets acquired, and liabilities assumed:
Book value IFRS 16 leases Other fair value adjustments Fair value
£ £ £ £
Property, plant and equipment 2,775,797 - (1,208,470) 1,567,327
Right-of-use-assets - 4,000,334 - 4,000,334
Brand - - 989,672 989,672
Inventories 1,227,026 - 134,510 1,361,536
Accounts receivables 3,916,152 - (1,986,917) 1,929,235
Cash and cash equivalents 358,382 - - 358,382
Accounts payables (1,559,755) - - (1,559,755)
Corporation tax (166,904) - - (166,904)
Provisions (335,864) - - (335,864)
Lease liabilities - (4,000,334) - (4,000,334)
Deferred tax liability (516,665) - (247,418) (764,083)
Total net assets 5,698,169 - (2,318,623) 3,379,546
Consideration: £
Cash consideration 9,672,948
Equity instruments (4,000,000 shares) 7,200,000
Directly attributable costs 269,740
17,142,688
Goodwill (note 14) 13,763,142
On acquisition Ambala held trade receivables with a book and fair value
£50,902, which are expected to be fully recovered.
The fair value of the ordinary shares issued was based on the listed share
price of the Company on 18 March 2025 of £1.80 per share.
Goodwill arises as a result of the surplus of consideration over the fair
value of the separately identifiable assets acquired. The main reason leading
to the recognition of Goodwill is the future economic benefits arising from
assets which are not capable of being individually identified and separately
recognised, this includes the value of the workforce acquired and expected
synergies to be obtained by the Group following the acquisition. The goodwill
is not expected to generate tax deductions.
The acquisition took place very close to the end of the financial year and the
results of the acquired entity were fully in line with the expectations
supporting the purchase price hence management were satisfied that there was
no impairment of goodwill at the end of the reporting period. The goodwill
arising will continue to be reviewed at least annually for impairment using
value in use calculations.
Since the acquisition, Ambala has contributed £0.8m of Group revenue and
profit before tax of £0.2m.
Measurement of fair values
Assets acquired Valuation technique
Property, plant and equipment Market comparison technique and cost technique: The valuation model considers
market prices for similar items when they are available, and depreciated
replacement cost when appropriate. Depreciated replacement cost reflects
adjustments for physical deterioration as well as functional and economic
obsolescence.
Intangible assets Relief-from-royalty method and multi-period excess earnings method: The
relief-from-royalty method considers the discounted estimated royalty payments
that are expected to be avoided as a result o the patents being owned. The
multi-period excess earnings method considers the present value of net cash
flows expected to be generated by the customer relationships, by excluding any
cash flows related to contributory assets.
Inventories Market comparison technique: The fair value is determined based on the
estimated selling price in the ordinary course of business less the estimated
costs of completion and sale, and a reasonable profit margin based on the
effort required to complete and sell the inventories.
22. Share-based payments
The expense recognised for share-based payments in respect of employee
services received during the financial period ended 30 March 2025 was
£215,381 (2024: £93,445).
Long Term Incentive Plan ('LTIP')
All employees and full-time Executive Directors of the Group are eligible to
participate in the LTIP at the discretion of the Remuneration Committee. Share
awards may be granted subject to objective performance conditions and vest
over a vesting period determined by the Remuneration Committee at the time of
grant.
During the financial period ended 30 March 2025 the Remuneration Committee
approved the grant of the following share options under the LTIP scheme. All
grants are in the form of equity settled share options.
Enterprise Management Incentive Scheme ('EMI')
It was proposed and agreed by the Remuneration Committee to issue a total of
61,086 share options under the EMI scheme to one Executive Director. These
options are capable of vesting on the third anniversary of the grant of the
options, based on the following performance criteria being met:
- 25% of the option vests if an aggregate Earnings Per Share of 16.15p
is achieved over the three financial yeas starting from the financial year in
which the date of the grant occurs in.
- An additional 0.1% of the option vests for every 0.0033p achieved
above an aggregate EPS of 16.15p, up to a maximum of 100% of the option held.
- In full if an aggregate EPS of 18.65p is achieved over the three
financial years starting from the financial year in which the date of grant
occurs in.
The options may not be exercised later than on the tenth anniversary of the
date of grant.
Unapproved Share Option Scheme
It was proposed and agreed by the Remuneration Committee to issue a total of
313,200 share options under the EMI scheme to three Executive Directors. These
options are capable of vesting on the third anniversary of the grant of the
options, based on the following performance criteria being met:
- 25% of the option vests if an aggregate Earnings Per Share of 16.15p
is achieved over the three financial years starting from the financial year in
which the date of the grant occurs in.
- An additional 0.1% of the option vests for every 0.0033p achieved
above an aggregate EPS of 16.15p, up to a maximum of 100% of the option held.
- In full if an aggregate EPS of 18.65p is achieved over the three
financial years starting from the financial year in which the date of grant
occurs in.
The options may not be exercised later than on the tenth anniversary of the
date of grant.
Exercise price Outstanding at 31 March 2024 Granted during the period Exercised during the period Forfeited during the period Outstanding at 30 March 2025 Weighted average remaining life Exercisable at 31 March 2024
Number Number Number Number Number Years Number
EMI Scheme
2024 LTIP - granted 20/11/2023 1p 242,653 - - - 242,653 8.6 -
2024 LTIP - granted 30/01/2024 162p 292,189 - - 69,444 222,745 8.8 -
2025 LTIP - granted 30/07/2024 1p - 61,086 - - 61,086 9.3 -
534,842 61,086 - 69,444 526,484 8.8 -
Unapproved share option scheme
2024 LTIP - granted 20/11/2023 1p 199,876 - - - 199,876 8.6 -
2025 LTIP - granted 30/07/2024 1p - 313,200 - - 313,200 9.3 -
199,876 313,200 - - 513,076 9.1 -
Total 734,718 374,286 - 69,444 1,039,560 8.9 -
Weighted average exercise price 65.0p 1.0p - 162p 37.7p -
The following table summarises the inputs used in the fair value models for
grants made in the financial period ended 30 March 2025, together with the
fair values calculated by those models:
EMI Scheme Unapproved share option scheme
Weighted average fair value - pence 103.0 103.0
Weighted average share price at grant - pence 180.0 180.0
Weighted average exercise price - pence 1.0 1.0
Number of periods to exercise - years 10.0 10.0
Dividend yield - % 5.5 5.5
Risk-free rates - % 4.1 4.1
Expected volatility - % 40.3 40.3
For options granted the volatility reflects the historical volatility based on
share transactions since listing. Daily closing share prices from since 27
June 2018 to the grant dates were reviewed and the standard deviation of the
percentage movements in share price calculated and utilised in determining the
expected volatility.
The risk-free rate is the interest rate on a debt instrument that has zero
risk, specifically default and reinvestment risk. The interest rate on
zero-coupon government securities, such as Treasury bills, notes, and bonds in
the UK, is treated as a proxy for the risk-free rate. The interest rate on a
10-year government bond on the date of grant has been used in the fair value
calculations of the options.
23. Borrowings
52 weeks ended 30 March 2025 2024
£ £
Current borrowings
Bank loans 2,053,091 146,544
Non-current borrowings
Bank loans 13,293,581 997,050
Total borrowings 15,346,672 1,143,594
52 weeks ended 30 March 2025 2024
£ £
Bank loans
At 01 April 2024 and 01 April 2023 1,143,594 1,236,790
Repayment of bank loans (740,788) (93,196)
402,806 1,143,594
New bank loans 15,200,000
Less: costs directly attributable to the new loans (256,134) -
14,943,866 -
At 30 March 2025 and 31 March 2024 15,346,672 1,143,594
At the start of the financial period, the Group had two existing term loans
outstanding. As part of the terms for the new £15,200,000 term loan with our
Corporate bankers, one of the existing loans was repaid in full, without any
penalties. The remaining loan has fixed charges over the property to which it
relates and interest of 2.15% above Bank of England base rate is charged on
the loan. The loan is repayable in monthly instalments with final payment due
on May 2029.
The new term loan taken out to part fund the acquisition of Ambala Foods
Limited, is split into two facilities:
- Facility A - £11,200,000 for payment towards the purchase
price of the acquisition, acquisition costs and/or refinancing of certain
indebtedness of the Group.
- Facility B - £4,000,000 for the acquisition of the freehold
property and any costs relating to the acquisition of the freehold property.
Both Facility A and B loans are charged interest of 2.75% above SONIA.
£256,134 of costs directly attributable to the new term loans, have been
deducted from the loan proceeds on initial recognition and are amortised over
the loan term using the EIR method. Facility A loan is repayable in equal
quarterly payments over a period of seven years, and the Facility B loan is
repayable in equal quarterly payments over a period of 10 years. The loans are
secured by fixed and floating charges over the properties and assets of the
Group.
24. Trade and other payables
52 weeks ended 30 March 2025 2024
£ £
Trade payables 4,927,614 2,953,202
Other taxation and social security 1,151,717 246,417
Other payables 284,578 399,605
6,363,909 3,599,224
Accruals 2,182,406 1,293,004
8,546,315 4,892,228
The fair value of the trade and other payables classified as financial
instruments are disclosed in the financial instruments (note 27).
The Group's exposure to market and liquidity risks related to trade and other
payables is disclosed in the financial risk management and impairment of
financial assets note (note 28). The Group pays its trade payables on terms
and as such trade payables are not yet due at the statement of financial
position dates.
25. Provisions
52 weeks ended 30 March 2025 2024
£ £
At 01 April 2024 and 01 April 2023 - 243,100
Released during the period - (243,100)
Acquisition of subsidiary 335,864 -
At 30 March 2025 and 31 March 2024 335,864 -
52 weeks ended 30 March 2025 2024
£ £
Website data breach
Balance brought forward - 243,100
Released during the period - (243,100)
- -
Dilapidation provision
Acquisition of subsidiary 335,864 -
During the financial period ending 30 March 2025, the Group acquired 100% of
the share capital of Ambala Foods Limited. Ambala Foods Limited has made
provision for dilapidations under the leases it has for its nineteen trading
stores.
During FY21 the Group made a provision with regards to an estimation of costs
and potential fines relating to a website data breach. During the 2024
financial year, based on the information submitted to the ICO regarding the
Group's security measures in place to prevent similar breaches, the ICO
informed the Company that it would not be pursuing enforcement action in this
case and consider the case closed, and the Company therefore released the
balance of the provision (see Note 10 Exceptional items).
26. Pension commitments
The Group operates a defined contribution pension scheme. The assets of the
scheme are held separately from those of the Group in an independently
administered fund. The pension cost charge represents contributions payable by
the Group to the fund and amounted to £96,858 (2024: £84,208). Contributions
totalling £53,557 (2024: £20,206) were payable to the fund at the statement
of financial position date and are included in other payables (see note 23).
27. Related party transactions
Transactions between the Company and its subsidiaries, which are related
parties, have been eliminated on consolidation. Related party transactions are
considered to be at arms-length.
Key management personnel are only the Executive and Non-Executive Directors
and details of the amounts paid to them are included within note 9 and the
Directors Remuneration Report.
Key management personnel had an interest in dividends as follows:
52 weeks ended 30 March 2025 2024
£ £
Sukh Chamdal 965,477 853,685
Dr Jaswir Singh 59,478 52,591
Neil Sachdev (resigned 31 October 2023) 3,183 2,815
Alison Green (resigned 31 December 2024) 570 504
Martin Blair 1,900 1,680
1,030,608 911,275
During the financial period the Group made sales to companies under the
control of the Directors. All sales were made on an arms-length basis. These
are detailed as follows with Director shareholding % shown in brackets:
52 weeks ended 30 March 2025 2024
Mr. Sukh Chamdal Sales Balance Sales Balance
£ £ £ £
Cake Box (Crawley) Limited (0%)** - - 142,210 37,671
Cake Box CT Limited (0%)* 248,381 38,816 280,758 20,985
Cake Box (Strood) Limited (0%)* 128,453 (1,217) 133,116 19,449
376,834 37,599 556,084 78,105
*100% owned by Mr Chamdal's daughter
**Store sold in January 2024
52 weeks ended 30 March 2025 2024
Dr Jaswir Singh Sales Balance Sales Balance
£ £ £ £
Luton Cake Box Limited (10%) 406,315 2,637 445,802 18,618
Peterborough Cake Box Limited (30%) 234,478 1,629 230,447 9,827
Cream Cake Limited (30%) 270,074 14,766 285,131 13,574
MK Cakes Limited (0%)*** 222,711 3,251 222,777 9,258
Bedford Cake Box Limited (0%)*** 236,353 (295) 230,995 9,523
Ilford Cakes Limited (50%) 181,147 8,048 186,387 9,520
Eggless Cake Company Limited (50%) 178,481 5,902 193,378 7,610
1,729,559 35,938 1,794,917 77,930
*** 100% owned by Dr Singh's son or wife
28. Financial instruments
The Group is exposed to risks that arise from its use of financial
instruments. This note describes the Group's objectives, policies, and
processes for managing those risks and the methods used to measure them.
Further quantitative information in respect of these risks is presented
throughout these financial statements.
The material accounting policies regarding financial instruments are disclosed
in note 2.
There have been no substantive changes in the Group's exposure to financial
instrument risks, its objectives, policies and processes for managing those
risks or the methods used to measure them from previous years unless otherwise
stated in this note (note 28).
The principal financial instruments used by the Group, from which financial
instrument risk arises, are as follows:
Financial assets
Held at amortised cost
52 weeks ended 30 March 2025 2024
£ £
Cash and cash equivalents 6,325,774 8,454,265
Trade and other receivables 3,467,218 3,798,761
Impairment of trade receivables (87,569) (92,569)
3,379,649 3,706,192
Other financial assets 3,057,898 1,052,187
12,763,321 13,212,644
Financial liabilities
Held at amortised cost
52 weeks ended 30 March 2025 2024
£ £
Trade and other payables 6,363,909 3,599,224
Secured borrowings 15,346,672 1,143,594
21,710,581 4,742,818
29. Financial risk management
The Board has overall responsibility for the determination of the Group's risk
management objectives and policies and, while retaining ultimate
responsibility for them, it has delegated the authority for designing and
operating processes that ensure the effective implementation of the objectives
and policies to the Group's finance function. The Board receives regular
reports from the Chief Financial Officer through which it reviews the
effectiveness of processes put in place and the appropriateness of the
objectives and policies it sets.
The overall objective of the Board is to set policies that seek to reduce risk
as far as possible without unduly affecting the Group's competitiveness and
flexibility. Further details regarding these policies are set out below:
Credit risk and impairment
Credit risk arises principally from the Group's trade and other receivables
and its other financial assets (which includes loans to franchisees). It is
the risk that the counter party fails to discharge its obligation in respect
of the instrument. The maximum exposure to credit risk equals the carrying
value of these items in the financial statements as the Group has the power to
stop supplying the customer until payment is received in full.
Definition of default
The loss allowance on all financial assets is measured
by considering the probability of default.
Receivables are considered to be in default when the principal or any interest
is more than 90 days past due, based on an assessment of past payment
practices and the likelihood of such overdue amounts being recovered.
Determination of credit-impaired financial assets
The Group considers financial assets to be 'credit-impaired' when the
following events, or combinations of several events, have occurred before the
year-end:
• significant financial difficulty of the counterparty
arising from significant downturns in operating results and/or significant
unavoidable cash requirements when the counterparty has insufficient finance
from internal working capital resources, external funding and/or group
support;
• a breach of contract, including receipts being more
than 240 days past due; and
• it becoming probable that the counterparty will enter
bankruptcy or liquidation.
Write-off policy
Receivables and other financial assets are written off by the Company when
there is no reasonable expectation of recovery, such as when the counterparty
is known to be going bankrupt, or into liquidation or administration.
Receivables will also be written off when the amount is more than 300 days
past due and is not covered by security over the assets of the counterparty or
a guarantee.
Impairment of trade receivables and other financial
assets
The Group calculates lifetime expected credit losses for trade receivables and
other financial assets using a portfolio approach. All items are grouped based
on the credit terms offered and the type of product sold. The probability of
default is determined at the year-end based on the aging of the receivables
and historical data about default rates on the same basis. That data is
adjusted if the Group determines that historical data is not reflective of
expected future conditions due to changes in the nature of its customers and
how they are affected by external factors such as economic and market
conditions.
The age profile of the trade receivables and expected credit loss is shown in
the table below:
Expected loss rate 52 weeks ended 30 March 2025 2024
£ £
0 - 30 days 0.1% 1,837,690 2,370,195
30 - 60 days 0.2% 244,447 623,834
60 - 90 days 0.5% 99,128 132,591
More than 90 days 1.0% 391,560 405,633
2,572,825 3,532,253
Impairment provision (87,569) (92,569)
2,485,256 3,439,684
The Group applies the IFRS 9 simplified approach to measure credit losses
using an expected credit loss provision for trade receivables.
The Group provides loans to franchisees as part of their financing for new
store openings. The loans are interest free with an upfront arrangement fee
included in the loan. The loans are unsecured however if loan repayment
schedules are not adhered to, supply of product and ingredients are put on
hold and franchisees are in breach of their franchise agreement. As a result,
the Group has the option to resell the franchise to another interested party
with the purchase price being used to first repay the loan and any outstanding
trade receivables, with any excess going to the original franchisee. The loan
periods are for periods of one or five years.
The Group uses three categories for loans which reflect their credit risk and
how the loan loss provision is determined for each of those categories. A
summary of the assumptions underpinning the Group's expected credit loss model
is as follows:
Category Group definition of category Basis for recognition of expected credit loss provision
Performing Loans whose credit risk is in line with original expectations. 12 month expected losses. Where the expected lifetime of an asset is less than
12 months, expected losses are measured at its expected lifetime (stage 1).
Underperforming Loans for which a significant increase in credit risk has occurred compared to Lifetime expected losses (stage 2).
original expectations; a significant increase in credit risk is presumed if
interest and/or principal repayments are 30 days past due (see above in more
detail).
Non-performing (credit impaired) Interest and/or principal repayments are 60 days past due, or it becomes Lifetime expected losses (stage 3).
probable a customer will enter bankruptcy.
Write-off Interest and/or principal repayments are 120 days past due and there is no Asset is written off.
reasonable expectation of recovery.
Over the term of the loans, the group accounts for its credit risk by
appropriately providing for expected credit losses on a timely basis. In
calculating the expected credit loss rates, the Group considers historical
loss rates and adjusts for forward-looking macroeconomic data. The Group
provides for credit losses against loans to franchisees as follows:
Group internal credit rating as at 31 March 2024 Expected credit loss Gross carrying amount (stage 1) Gross carrying amount (stage 2) Gross carrying amount (stage 3)
£ £ £
High 0.1% 1,052,187 - -
Medium 10.0% - - -
Low 20.0% - - -
Group internal credit rating as at 30 March 2025 Expected credit loss Gross carrying amount (stage 1) Gross carrying amount (stage 2) Gross carrying amount (stage 3)
£ £ £
High 0.1% 3,057,898 - -
Medium 10.0% - - -
Low 20.0% - -
-
Performing Under-performing Non-performing Total
As at 31 March 2024 £ £ £ £
Individual financial assets transferred to underperforming (lifetime expected - - - -
credit losses)
Performing Under-performing Non-performing Total
As at 30 March 2025 £ £ £ £
Individual financial assets transferred to underperforming (lifetime expected - - - -
credit losses)
No significant changes to estimation techniques or assumptions were made
during the reporting period. The Group has assessed the default risk as very
low on franchisee loans as these loans are made to franchisees rather than a
traditional third party. No expected credit loss has been recognised for Stage
1 loans in line with management's assessment.
The loss allowance for loans to franchisees as at 31 March 2024 and 30 March
2025 reconciles to the opening loss allowance for that provision as follows:
Out of the total impairment provision of £87,569 (2024: £92,569), £87,569
(2024: £92,569) relates to specifically impaired trade receivable debt and
£NIL (2024: £NIL) relates to franchisee loans.
Liquidity risk
The Group's policy is to ensure that it will always have sufficient cash to
allow it to meet its liabilities when they become due.
The Board receives cash flow projections on a regular basis which are
monitored regularly. The Board will not commit to material expenditure in
respect of its ongoing development programme prior to being satisfied that
sufficient funding is available to the Group to finance the planned
programmes.
The following table sets out the contractual maturities (representing
undiscounted contractual cash-flows) of financial liabilities:
52 weeks ended 30 March 2025 2024
£ £
Borrowings - due within one year 2,053,091 146,544
Borrowings - due within one to two years 2,059,042 158,337
Borrowings - due after more than two years 11,234,539 838,713
15,346,672 1,143,594
Right-of-use assets - due within one year 688,363 280,425
Right-of-use assets - due within one to two years 718,225 291,123
Right-of-use assets - due within two - five years 2,262,302 941,720
Right-of-use assets - due after more than five years 2,480,858 916,570
6,149,748 2,429,838
Trade and other payables
52 weeks ended 30 March 2025 2024
£ £
0 - 30 days 7,084,651 3,603,819
30 - 60 days 1,375,914 1,265,251
60 - 90 days 11,411 19,914
90 to 120 days 74,429 3,244
8,546,315 4,892,228
Interest rate risk
The Group is exposed to interest rate risk due to entities in the Group
borrowing funds at both fixed and floating interest rates. The risk is managed
by the Group by maintaining good relationships with banks and other lending
providers and by ensuring cash reserves are high enough to cover the debt.
Where possible fixed terms of interest will be sought.
The Group analyses the interest rate exposure on a regular basis. A
sensitivity analysis is performed by applying a simulation technique to the
liabilities that represent major interest-bearing positions. Various scenarios
are run taking into consideration refinancing, renewal of the existing
positions, alternative financing and hedging. Based on the simulations
performed, the impact on profit or loss and net assets of a 100 basis-point
shift (2024:100 basis-point shift) would be a change of £148,421 (2024:
£11,436).
Capital risk management
The Group considers its equity capital to comprise its ordinary share capital
and retained profits. In managing its capital, the Group's primary objective
is to provide return for its equity shareholders through capital growth and
future dividend income. The Group's policy is to seek to maintain a gearing
ratio that balances risks and returns at an acceptable level and also to
maintain a sufficient funding base to enable the Group to meet its working
capital and strategic investment needs. In making decisions to adjust its
capital structure to achieve these aims, either through new share issues or
the issue of debt, the Group considers not only its short-term position but
also its long-term operational and strategic objectives.
Details of the Group's capital is disclosed in the Consolidated Statement of
Changes in Equity.
There have been no other significant changes to the Group's management
objectives, policies and procedures in the financial period nor has there been
any change in what the Group considers to be capital.
Currency risk
The Group is not exposed to any significant currency risk. The Group manages
any currency exposure by retaining a small holding in US Dollars and Euro's
however, all other cash balances are held in Sterling.
30. Events after the reporting period
Final dividend
Post year end the directors have recommended a final dividend of 6.8p per
share (2024:6.1p per share).
31. Subsidiary undertakings
Name Country of incorporation Class of shares Holding Principal activity
Eggfree Cake Box Limited United Kingdom Ordinary 100% Franchisor of specialist cake stores
Chaz Limited United Kingdom Ordinary 100% Property rental company
Ambala Foods Limited United Kingdom Ordinary 100% Retail of Asian confectionary and savoury products
32. Note supporting statement of cashflows
52 weeks ended 30 March 2025 2024
£ £
Cash at bank available on demand 6,314,614 8,453,865
Cash on hand 11,160 400
6,325,774 8,454,265
There were no significant non-cash transactions from financing activities
(2024: none).
Non-cash transactions from financing activities are shown in the
reconciliation of liabilities from financing transactions below:
Non-current lease liabilities Current lease liabilities Non-current borrowings Current borrowings Total
£ £ £ £ £
As at 31 March 2023 2,429,838 270,119 1,132,292 104,498 3,936,747
Cash flows
Repayments - (365,000) - (175,246) (540,246)
Non-cash flows
Interest - 94,881 11,302 70,748 176,931
Non-current liabilities becoming current during the year (280,425) 280,425 (146,544) 146,544 -
As at 31 March 2024 2,149,413 280,425 997,050 146,544 3,573,432
Cash flows
Repayments - (365,000) (594,244) (256,714) (1,215,958)
Additions during the period 4,000,334 - 14,943,866 - 18,944,200
Non-cash flows
Interest - 84,575 - 110,170 194,745
Non-current liabilities becoming current during the period (688,363) 688,363 (2,053,091) 2,053,091 -
As at 30 March 2025 5,461,384 688,363 13,293,581 2,053,091 21,496,419
33. Ultimate controlling party
The Group considers there is no ultimate controlling party.
34. Earnings per share
52 weeks ended 30 March 2025 2024
£ £
Profit after tax attributable to the owners of Cake Box Holdings plc 4,373,292 4,658,685
Non-underlying items 914,722 (243,100)
Underlying profit after tax attributable to the owners of Cake Box Holdings 5,288,014 4,415,585
plc
Number of ordinary shares in issue Number Number
Beginning of the period 40,000,000 40,000,000
Ordinary shares issued during the period 4,000,000 -
End of the period 44,000,000 40,000,000
Weighted average number shares
Number Number
Weighted average number of ordinary shares 40,109,890 40,000,000
Dilutive effect of share options 1,039,560 734,718
Diluted weighted average number of ordinary shares 41,149,450 40,734,718
Earnings per share
Pence Pence
Statutory earnings per share
Basic earnings per share 10.90 11.65
Diluted earnings per share 10.63 11.44
Underlying earnings per share
Basic earnings per share 13.18 11.04
Diluted earnings per share 12.85 10.84
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