REG - Cake Box Holdings - Half Year Results
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RNS Number : 0030J Cake Box Holdings PLC 26 November 2025
26 November 2025
Cake Box Holdings plc
("Cake Box", "the Company" or "the Group")
Unaudited Half Year Results for the 26 weeks ended 28 September 2025
and
Notice of Investor Presentation
Strong first half performance and an encouraging start to the second half of
the year
Cake Box Holdings plc, the UK's largest retailer of fresh cream celebration
cakes, today announces its unaudited half-year results for the twenty-six
weeks ended 28 September 2025.
Financial Highlights
26 weeks ended 28 September 2025 26 weeks ended 30 September 2024 Change*
£m £m %
Group revenue 28.8 18.7 53.5%
Gross profit 15.9 10.1 58.0%
EBITDA** 4.5 3.5 31.0%
Underlying EBITDA*** 4.6 3.5 33.3%
Profit before tax 2.6 2.8 (7.4%)
Underlying profit before tax*** 2.7 2.8 (4.5%)
Basic earnings per share 4.40p 5.18p (15.1%)
Underlying basic earnings per share*** 4.58p 5.18p (11.5%)
Interim dividend per share 3.60p 3.40p 5.9%
*Change % is calculated on the figures included in consolidated statement of
comprehensive income and consolidated statement of financial position
**EBITDA is calculated as operating profit before depreciation and
amortisation
***Underlying EBITDA/profit before tax/basic earnings per share are calculated
excluding the impact of exceptional items. Earnings per share figures reflect
the higher shares in issue following the successful £7.2m equity fundraise in
March 2025.
· Underlying EBITDA*** grew 33.3% to £4.6m as a result of positive
trading in Cake Box and the maiden contribution of Ambala Foods Limited
("Ambala")
· Underlying profit before tax down modestly 4.5% due to the increased
interest costs following the acquisition of Ambala
Operational Highlights
Group revenue increased in H1 FY26 by 53.5% to £28.8m (H1 FY25: £18.7m)
· Significant organic growth* as Cake Box revenues increased by 18.9%
to £22.3m (H1 FY25: £18.7m)
· Contribution from Ambala to Group performance was in line with the
Board's expectations with revenues of £6.5m (H1 FY25: Nil) and underlying
EBITDA of £0.4m (H1 FY25: Nil)
· Total number of stores has increased to 284 at 28 September 2025:
o nine new Cake Box stores were opened during the period (H1 FY25: seven)
with another four opened post period end; and
o two new Ambala franchisee owned stores opened during the period, bringing
the total number of Ambala stores to 24 (19 corporate and 5 franchised)
Significant growth across all digital offering KPIs
· 2.6m website visits for the half year, up 18% year on year
· Subscription database increased 29% to 990k, since the start of the
financial year
· SMS database grew 32% to 390k, since the start of the financial year
· Online sales increased 25.9% year on year, with 134k new customers
online
Cake Box franchise store sales demonstrated another period of strong growth
resulting from investment in marketing and launch of new products
· Franchise total sales including kiosks up 14.6% to £47.6m (H1 FY25:
£41.5m)
· Like-for-like** sales growth of 6.3% compared to the equivalent
period last year (H1 FY25: 2.0%)
· Franchisee online sales increased 25.9% to £11.3m (H1 FY25: £9.0m)
· Number of multi-site franchisees increased to 53 (H1 FY25: 47)
Outlook: Trading remains on track to deliver another year of growth in line
with market expectations
· Trading remains on track to deliver another year of growth in line
with market expectations despite the challenging consumer environment
· H2 FY26 revenues and profits are expected to be higher than H1 FY26,
in line with the Group's normal seasonal trading pattern, resulting from a
strong start to trading in the second half, important celebration events to
come, new store openings and the continued digital growth
· Total Cake Box franchise sales were 13.7% ahead in the first month
since period end with like-for-like sales up 5.0%, compared with the
equivalent period in the prior year
· On track to open 25 new Cake Box franchise stores and 10 new
franchised Ambala stores in FY26
· Ambala integration is progressing well, and the Board expects the
investment made in the first half, and the important celebration events in H2,
to deliver higher revenue and profit in the second half compared to the first
half
· The Board continues to have strong confidence in the Group's growth
strategy and its ability to generate sustainable, cash-backed earnings growth
and long-term dividend progression
* Organic growth includes new Cake Box stores opened during the period.
**Like-for-like: Stores trading for at least one full financial year prior to
30 September 2025.
Sukh Chamdal, Chief Executive Officer, commented: "We are pleased to report a
strong performance in the first half of the year, resulting in a 53.5% revenue
growth and a 33.3% increase in underlying EBITDA. This was driven by sustained
consumer demand for our diverse product portfolio, the successful opening of
nine new Cake Box stores and continuing strategic investments in our digital
platform, which have significantly enhanced our online presence.
"With an encouraging pipeline for further expansion, we are well positioned to
achieve our target of 25 more new Cake Box stores in FY26. In addition, online
sales have been a key growth driver, now accounting for 25.0% of franchise
store sales. This momentum is expected to continue into the second half,
demonstrating the effectiveness of our integrated online and offline customer
experience.
"Additionally, this period marks a maiden contribution from Ambala, following
its acquisition by Cake Box in March 2025. We are pleased to report that the
integration process is progressing smoothly, with a number of operational
efficiencies already implemented. We opened two new franchised Ambala stores
during the period, with a further eight franchised openings planned by year
end, significantly expanding the existing store footprint.
"Looking ahead, the momentum of the first half has continued into the second
half of the year and we are on track to deliver full year performance in line
with our expectations despite the consumer environment remaining challenging."
Notice of Investor Presentation
Cake Box will provide a live presentation relating to the Company's results
via the Investor Meet Company platform on Monday, 1 December 2025 at 14.00
GMT. The presentation is open to all existing and potential shareholders and
registration can be completed via the following link:
https://www.investormeetcompany.com/cake-box-holdings-plc/register-investor
(https://www.investormeetcompany.com/cake-box-holdings-plc/register-investor)
For further information, please contact:
Cake Box Holdings plc
+44 (0) 20 4582 3500
Sukh Chamdal, CEO
Michael Botha, CFO
Shore Capital (Nominated Advisor & Broker)
+44 (0) 20 7408
4090
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
Overview
It has been a good first half for the Group, building on the strong
performance of FY25 and delivering a 53.5% increase in revenue to £28.8m (H1
FY25: £18.7m). Like-for-like growth remained strong throughout H1 FY26,
despite continued challenging market conditions across the retail sector.
Performance was driven by strong organic growth, with Cake Box revenue
increasing 18.9%, and maiden contributions from Ambala, which generated £6.5m
sales and underlying EBITDA of £0.4m for the 26 weeks ended 28 September
2025.
Operational Review
Expansion of the Cake Box franchise store estate
The Group continued to expand the Cake Box store estate, with nine new stores
opened during the period. As a result, the total number of Cake Box stores at
28 September 2025 rose to 260 (H1 FY25: 232). 53 of the Company's 98
franchisees are multi-store franchisees, operating a total of 209 stores out
of the total 260 stores.
Further strengthening Cake Box's national presence, new locations added in the
period include Tonbridge, Dunfermline and Blackpool, where the Company
identified compelling growth opportunities and anticipate strong customer
demand.
Continued strategic progress with marketing initiatives
The Group made further strategic progress in marketing during the first half,
enhancing customer engagement and strengthening brand loyalty. Following the
launch in June 2024, of the Cake Club, a new loyalty programme, 138,000
customers had signed up by 28 September 2025. The Cake Club unlocks offers or
discounts for customers on subsequent transactions as they progress through
the programme.
The Cake Box website has delivered 25.9% year on year increase in online
sales, accounting for 25.0% of total franchise store sales (H1 FY25: 22.9%),
an important strategic milestone in the Group's digital capability. The
website generated £11.3m franchise sales for the 26 weeks, averaging above
£0.4m per week consistently.
The first half saw the successful launch of the extremely popular Dubai
Chocolate range, which created a phenomenal social media frenzy and attracted
a large number of new customers to the Cake Box brand.
Data-led marketing remains central to the Group's strategy. Initiatives driven
by in-house marketing and e-commerce teams have expanded the marketing
database by 29% to 990k, while SMS subscriptions increased 32% to 390k, since
the start of the year.
H1 FY26 saw an increase of 18% in traffic to the website, driven mainly by
clicks from Google and Meta (Facebook and Instagram). Returning customers now
represent 54% of online sales, reflecting strong brand loyalty, while the
Group attracted 134k new customers to the Brand during the period, 13% more
than in H1 FY25.
Ambala integration
The Group completed the acquisition of Ambala shortly before the end of the
FY25 financial year end, on 21 March 2025. Ambala generated maiden sales for
the Group of £6.5m and underlying EBITDA of £0.4m for the 26 weeks ended 28
September 2025, in line with expectations.
The integration of Ambala is progressing well and remains on track to deliver
the operational and strategic benefits anticipated at the time of the
acquisition. In the first half, two new Ambala franchisee owned stores were
opened and two more have opened since the period end with a target to reach 10
new franchised store openings in the full year. This is in line with our
strategy to grow Ambala through franchising.
Operational efficiencies have been achieved through streamlining production
workflows, new machinery and increased automation. Local supplier partnerships
have improved ingredient freshness and commercial terms, while supply chain
integration between Ambala and Cake Box has improved delivery reliability.
Revised management frameworks have strengthened accountability, decision
making and cross departmental collaboration, providing a clearer operational
structure.
Marketing activity, including multi-channel campaigns and community
initiatives, are increasing brand awareness and customer engagement. Refreshed
branding, updated packaging, and improved in-store presentation has improved
the customer experience. In addition, a new website, launched in early October
2025, incorporates click-and-collect capability to improve convenience and
support sales growth.
Financial Review
The Group delivered another period of strong financial performance, with
continued revenue and profit growth and disciplined operational execution.
Total Cake Box franchise store sales increased by 14.6%, with like-for-like
sales up 6.3% compared with the same period in the prior year (H1 FY25: up
2.0%) and compared to 3.8% in H2 FY25. This performance reflects the continued
reliance of the brand, successful execution of strategic initiatives, and
positive consumer demand.
Group gross margin increased to 55.4% (H1 FY25: 53.8%) reflecting continued
commercial discipline and a favourable mix effect, as the Ambala corporate
store margins are higher than the product sales margins for Cake Box. The
Group's margin also benefitted from largely stable input costs throughout the
half, with the Group mindful of passing any increases in ingredient costs to
franchisees and, ultimately, to customers.
Cake Box generated underlying EBITDA of £4.3m, an increase of 23.2% compared
to the first half of the prior financial year (H1 FY25: £3.4m). The Group
underlying EBITDA margin was 16.0% (H1 FY25: 18.4%) with Cake Box underlying
EBITDA margin expanding by 66bps to 19.1% (H1 FY25: 18.4%) offset by Ambala
strategic investments and operational improvements, which are expected to
support improved Ambala contribution margins going forward.
Underlying profit before tax and underlying basic earnings per share were down
4.5% and 11.5% respectively, predominantly due to the increase in interest
costs and the increase in shares in issue following the successful equity
raise in March 2025.
The Group generated positive free cash flow of £0.8m (H1 FY25: £0.9m)
reflecting robust operating cash flows offset by higher corporation tax and
net interest.
Investment for growth opportunities
Following the purchase of the land adjacent to the Group's Bradford depot in
the prior year, Cake Box completed the process of selecting a contractor for
the build phase of the new warehouse in Bradford, during H1 FY26. This will
help support store growth in the north of England and Scotland. Once
commenced, the build will take between 18 to 24 months and is expected to have
a total cost of £5m across FY26 to FY28. The build will be funded from
existing cash resources.
A further £0.4m capital expenditure was spent on IT and e-commerce
capabilities during the half for Cake Box and £0.2m for Ambala. Further
capital spend for Ambala of £0.2m was incurred for new production equipment
and £0.4m for improvements to the infrastructure.
Balance Sheet and cashflow
Cash at the period end was £2.7m (H1 FY25: £6.7m), which is post paying the
final dividend for FY25 of £3.0m in September 2025 and the repayments and
interest of £1.8m for the new loans for the acquisition of Ambala. The
Group's net debt position was £11.6m (H1 FY25: net cash of £5.6m).
Dividend
The Group's progressive dividend policy reflects its cash generation, organic
earnings progression and confidence in the Company's outlook. In line with
this, Cake Box is declaring an interim dividend of 3.6 pence per share
representing an increase of 5.9% from last year. The interim dividend will be
paid on 19 December 2025 to those shareholders on the register at the close of
business on 5 December 2025. The ex-dividend date is therefore 4 December. The
Company's ISIN is GB00BDZWB751 and the TIDM is CBOX.
Outlook
The Group remains on track to deliver year-on-year growth in line with market
expectations, despite the challenging consumer environment. Revenues and
profits for the second half of FY26 are anticipated to be higher than the
first half, aligned with the Group's typical seasonal trading trends. This
outlook is supported by the encouraging start to trading in H2 FY26, the
anticipated benefits of key celebration events, the opening of new stores, and
continued growth in digital sales.
Organic trading has continued positively, underpinned by consistent consumer
demand and the strong appeal of the Group's product offerings. Total franchise
sales in Cake Box grew by 13.7% in the first month following the period end,
with like-for-like sales increasing 5.0% compared to the prior year. Cake Box
online performance also remained encouraging, with sales in October increasing
17.4% compared with the prior year. Since the period end, six new stores have
opened, bringing the total number of openings in FY26 to date to seventeen.
The Group remains on schedule to meet its full-year target of opening 25 new
Cake Box franchise stores and 10 Ambala franchise stores, reflecting the
strength of its franchise model and brand.
The integration of Ambala continues to progress well, and the investments made
during the first half, as well as the important celebration events, Diwali and
Eid in H2, are expected to contribute to higher revenues and profits in H2
FY26 compared to H1 FY26. Diwali and Eid have historically and remain
important to the profitability of Ambala.
The Group remains committed to leveraging its enhanced digital capabilities to
better integrate online and High Street channels, further strengthening
customer engagement and supporting future growth.
CAKE BOX HOLDINGS PLC
UNAUDITED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME FOR THE 26 WEEKS
ENDED 28 SEPTEMBER 2025
26 weeks to 26 weeks to 52 weeks to
28 September
30 September
30 March
2025
2024
2025
(unaudited)
(unaudited)
(restated)
Note £ £ £
Revenue 2 28,759,930 18,734,746 42,780,626
Cost of sales (12,836,993) (8,656,803) (20,323,680)
Gross profit 15,922,937 10,077,943 22,456,946
Administrative expenses before exceptional items (12,538,385) (7,267,596) (15,105,112)
Impairment of receivables - writeback - - 5,000
Exceptional items (80,500) - (1,189,462)
Administrative expenses (12,618,885) (7,267,596) (16,289,574)
Operating profit 3,304,052 2,810,347 6,167,372
Finance income 6,129 105,356 149,395
Finance expense (729,038) (129,395) (433,567)
Profit before income tax 2,581,143 2,786,308 5,883,200
Income tax expense (645,530) (714,510) (1,779,648)
Profit after income tax 1,935,613 2,071,798 4,103,552
Other comprehensive income for the period
Items that will not subsequently be classified to profit or loss:
- Revaluation of freehold property - - 154,907
- Deferred tax on revaluation of freehold property - - (38,727)
Total other comprehensive income for the period - - 116,180
Total comprehensive income for the period 1,935,613 2,071,798 4,219,732
Earnings per share - pence
Basic 5 4.40 5.18 10.23
Diluted 5 4.30 5.04 9.97
CAKE BOX HOLDINGS PLC
UNAUDITED CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 28 SEPTEMBER 2025
26 weeks to 26 weeks to 52 weeks to
28 September
30 September
30 March
2025
2024
2025
(unaudited)
(unaudited)
(restated)
Note £ £ £
Assets
Non-current assets
Goodwill 13,842,934 - 13,842,934
Intangible assets 2,672,675 1,074,451 2,412,202
Property, plant and equipment 21,200,398 12,220,280 20,636,295
Right-of-use assets 6,089,841 2,124,580 5,974,944
Other financial assets 1,624,583 615,563 1,721,900
45,430,431 16,034,874 44,588,275
Current assets
Assets held for sale 174,581 - -
Inventories 3,757,296 2,681,393 3,657,778
Trade and other receivables 6,833,374 3,506,332 5,415,395
Other financial assets 1,322,183 760,818 1,335,998
Cash and cash equivalents 2,716,492 6,696,417 6,325,774
14,803,926 13,644,960 16,734,945
Total Assets 60,234,357 29,679,834 61,323,220
Equity and liabilities
Equity
Issued share capital 4 440,000 400,000 440,000
Capital redemption reserve 40 40 40
Share premium account 6,691,995 - 6,691,995
Share option reserve 565,404 172,829 365,479
Revaluation reserve 3,733,218 3,617,038 3,733,218
Retained earnings 14,435,510 14,820,143 15,491,897
Equity attributable to the owners of the parent company 25,866,167 19,010,050 26,722,629
Current liabilities
Trade and other payables 9,517,812 3,907,739 8,895,847
Lease liabilities 706,868 285,724 688,363
Short-term borrowings 2,090,333 180,019 2,053,091
Current tax payable 987,869 1,364,190 953,949
Provisions 351,361 - 335,864
13,654,243 5,737,672 12,927,114
Non-current liabilities
Lease liabilities 5,652,902 2,005,214 5,461,384
Borrowings 12,230,547 888,134 13,293,581
Deferred tax liabilities 2,830,498 2,038,764 2,918,512
20,713,947 4,932,112 21,673,477
Total Equity & Liabilities 60,234,357 29,679,834 61,323,220
CAKE BOX HOLDINGS PLC
UNAUDITED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE 26 WEEKS ENDED
28 SEPTEMBER 2025
Share Capital Share premium account Share option reserve Revaluation Retained Total
capital
redemption
reserve
earnings
reserve
£ £ £ £ £ £ £
At 1 April 2024 400,000 40 - 95,266 3,617,038 15,188,345 19,300,689
Total comprehensive income for the period - - - - - 2,071,798 2,071,798
Transactions with the owners in their capacity as owners
Share-based payments - - - 59,927 - - 59,927
Deferred tax on share-based payments - - - 17,636 - - 17,636
Dividends paid - - - - - (2,440,000) (2,440,000)
At 30 September 2024 400,000 40 - 172,829 3,617,038 14,820,143 19,010,050
Total comprehensive income for the period - - - - - 2,301,494 2,301,494
Revaluation of freehold property - - - - 154,907 - 154,907
Deferred tax on revaluation of freehold property - - - - (38,727) - (38,727)
Total comprehensive income for the period - - - - 116,180 2,301,494 2,417,674
Prior year adjustment - - - - - (269,740) (269,740)
Transactions with the owners in their capacity as owners
Share-based payments - - - 155,454 - - 155,454
Deferred tax on share-based payments - - - 37,196 - - 37,196
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 - - - - - (1,360,000) (1,360,000)
At 30 March 2025 (restated) 440,000 40 6,691,995 365,479 3,733,218 15,491,897 26,722,629
Total comprehensive income for the period - - - - - 1,935,613 1,935,613
Transactions with the owners in their capacity as owners
Share-based payments - - - 149,320 - - 149,320
Deferred tax on share-based payments - - - 50,605 - - 50,605
Dividends paid - - - - - (2,992,000) (2,992,000)
At 28 September 2025 440,000 40 6,691,995 565,404 3,733,218 14,435,510 25,866,167
CAKE BOX HOLDINGS PLC
UNAUDITED CONSOLIDATED CASH FLOW STATEMENT FOR THE 26 WEEKS ENDED 28 SEPTEMBER
2025
26 weeks to 26 weeks to 52 weeks to
28 September
30 September
30 March
2025
2024
2025
(unaudited)
(unaudited)
(restated)
£ £ £
Cash flows from operating activities
Profit before income tax 2,581,143 2,786,308 5,883,200
Adjusted for:
Depreciation of property, plant, and equipment 653,423 447,691 939,499
Amortisation of intangible assets 107,644 42,361 136,621
Depreciation of right-of-use assets 454,516 149,970 299,940
Impairment of website costs - - 176,935
Profit on disposal of tangible fixed assets (23,281) (1,150) (21,390)
Share based payment expense 149,320 77,566 215,381
Finance income (6,129) (105,356) (149,395)
Finance expense 729,038 129,395 433,567
(Increase)/decrease in inventories (99,518) (88,555) 296,596
(Increase)/decrease in trade and other receivables (1,417,979) 647,852 (192,348)
Increase/(decrease) in trade and other payables 621,965 (984,489) 1,948,711
Decrease/(increase) in other financial assets 111,132 (324,195) (2,005,711)
Increase in provisions 15,497 - -
Cash generated from operations 3,876,771 2,777,398 7,961,606
Taxation paid (649,017) (281,208) (1,791,721)
Net cash inflow from operating activities 3,227,754 2,496,190 6,169,885
Cash flows from investing activities
Acquisition of subsidiary net of cash acquired - - (15,508,574)
Purchase of new subsidiary freehold - - (6,319,860)
Proceeds from sale of property, plant and equipment 23,281 1,150 25,031
Purchase of property, plant and equipment (1,228,213) (501,413) (1,004,971)
Purchase of assets under construction (166,651) (686,365) (1,052,175)
Additions to intangible assets (365,362) (389,029) (1,008,303)
Finance income 6,129 105,356 149,395
Net cash outflow from investing activities (1,730,816) (1,470,301) (24,719,457)
Cash flows from financing activities
New share issue - - 7,200,000
Costs directly attributable to share issue - - (468,005)
Repayment of finance leases (359,390) (138,900) (280,425)
Repayment of borrowings (1,025,792) (75,442) (740,788)
New borrowings - - 14,943,866
Dividends paid (2,992,000) (2,440,000) (3,800,000)
Finance expense (729,038) (129,395) (433,567)
Net cash outflow from financing activities (5,106,220) (2,783,737) 16,421,081
Net decrease in cash and cash equivalents (3,609,282) (1,757,848) (2,128,491)
Cash and cash equivalents brought forward 6,325,774 8,454,265 8,454,265
Cash and cash equivalents carried forward 2,716,492 6,696,417 6,325,774
CAKE BOX HOLDINGS PLC
NOTES TO THE INTERIM ACCOUNTS FOR THE 26 WEEKS ENDED 28 SEPTEMBER 2025
1.Notes to the Interim Report
Basis of preparation
The consolidated half-yearly financial statements do not constitute statutory
accounts within the meaning of Section 434 of the Companies Act 2006. The
statutory accounts for the 52 weeks ended 30 March 2025 have been filed with
the Registrar of Companies at Companies House. The auditor's report on the
statutory accounts for the 52 weeks ended 30 March 2025 was unqualified, did
not include any matters to which the auditor drew attention by way of emphasis
and did not contain any statements under Section 498 (2) or (3) of the
Companies Act 2006.
The published financial statements for the 52 weeks ended 30 March 2025 were
prepared in accordance with UK adopted International Financial Reporting
Standards ("UK adopted IFRS").
The consolidated annual financial statements of Cake Box Holdings Plc for the
52 weeks ended 29 March 2026 will also be prepared in accordance with UK
adopted IFRS. Accordingly, these interim financial statements have been
prepared using accounting policies consistent with those which will be adopted
by the Group in the financial statements for the 52 weeks ended 29 March 2026,
but do not contain all the information necessary for full compliance with UK
adopted IFRS.
The consolidated interim financial statements for the 26 weeks to 28 September
2025 have not been audited.
Going concern
The consolidated interim financial statements have been prepared under the
going concern assumption and historical cost convention as modified by fair
value for property, plant and equipment.
This is considered appropriate, given the financial resources of the Group
including the current position of £2.7m of cash and cash equivalents,
together with long term contracts with its franchisees and long-standing
relationships with its key suppliers.
The Directors of the Group have performed an assessment of the overall
position and future forecasts (including the 12-month period from the date of
this report) for the purpose of going concern. The overall Group has seen a
pleasing performance in the first half of the financial year.
Basis of consolidation
The Group consolidated interim financial statements consolidates the company
and its subsidiaries. All intra-group transactions, balances, income and
expenses are eliminated on consolidation.
Prior-period restatement
In accordance with IAS 8 Accounting Policies, Changes in Accounting Estimates
and Errors, management has identified and corrected errors in the acquisition
accounting for Ambala Foods Limited, together with an unadjusted error carried
forward from the FY25 audit.
(a) Nature of the prior-period errors:
· Professional and legal fees of £269,740 that were directly
attributable to the Ambala acquisition were previously capitalised within
goodwill. These have now been recognised within administrative expenses in
accordance with IFRS 3:53, which requires such costs to be expensed as
incurred. This has resulted in a decrease in goodwill and a corresponding
increase in administrative expenses. This was an uncorrected and immaterial
error in the FY25 audit.
· Deferred consideration:
The completion-statement process completed post year end, confirmed that no
further payment was due in respect of the £250,000 holdback retained under
the Share Purchase Agreement. As the relevant information was available at the
FY25 reporting date, the amount of £156,744 previously recognised as a
liability has been released, with a corresponding reduction in goodwill.
· Section 458 CTA 2010 obligation under the Share Purchase Agreement
('SPA'):
Under Clause 4.4 of the SPA, the Group is required to pay the former Ambala
shareholders an amount equal to any corporation-tax refund received by Ambala
relating to loans previously taxed under Section 455 CTA 2010. Ambala
recognised a £506,276 corporation-tax receivable at completion; however, the
corresponding obligation for Cake Box Holdings plc to pass this amount to the
sellers was not recorded. This correction increases goodwill and recognises
the related liability within accruals. This item is individually material and
therefore the prior-year figures have been restated.
(b) Amount of the corrections for the Statement of Financial Position for the
prior financial period ending 30 March 2025
Financial-statement line item Previously reported Adjustment Restated
£ £ £
Goodwill 13,763,142 79,792 13,842,934
Trade and other payables 8,546,315 349,532 8,895,847
Administrative expenses (16,019,834) (269,740) (16,289,574)
Retained earnings 15,761,637 (269,740) 15,491,897
(c) Amount of the corrections for the Cash flow Statement for the prior financial period ending 30 March 2025
Cash Flow statement line item Previously reported Adjustment Restated
£ £ £
Profit before income tax 6,152,940 (269,740) 5,883,200
Increase/(decrease) in trade and other payables 2,105,455 (156,744) 1,948,711
Acquisition of subsidiary (15,935,058) 426,484 (15,508,574)
Explanation of movements:
· Profit before income tax: Reflects the prior-year uncorrected error
now corrected through profit or loss. Acquisition-related costs were
previously capitalised in goodwill but have now been expensed.
· Increase/(decrease) in trade and other payables: Removal of the
deferred-consideration liability following finalisation of the Settlement
Agreement. The liability was non-cash and has been derecognised, reducing
accruals.
· Acquisition of subsidiary (net of cash acquired): Combined impact of
the above two adjustments, which were previously included within this line.
(d) Earnings per share - IAS 33
The correction to administrative expenses reduces prior-year basic and diluted
EPS by 0.67 pence
(e) Correction at the beginning of the earliest period presented
The cumulative effect of the corrections on equity at 31 March 2024 (the
opening balance of the earliest comparative period presented) was £nil, as
the Ambala acquisition occurred after that date.
2.Segment reporting
Following the acquisition of Ambala Foods Limited, cash generating units
reported to the chief operating decision maker, the Board of Directors, 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. The
majority of sales occurred in the United Kingdom for both segments and
financial periods.
26 weeks ended 28 September 2025 (unaudited) 26 weeks ended 30 September 2024 (unaudited) 52 weeks ended 30 March 2025 (restated)
Cake Box Ambala Total Cake Box Ambala Total Cake Box Ambala Total
£ £ £ £ £ £ £ £ £
Segment assets
Segment current assets 11,569,060 3,234,866 14,803,926 13,644,960 - 13,644,960 13,143,397 3,591,548 16,734,945
Segment non-current assets 38,986,758 6,443,673 445,430,431 16,034,874 - 16,034,874 39,027,532 5,560,743 44,588,275
Total assets 50,555,818 9,678,539 60,234,357 29,679,834 - 29,679,834 52,170,929 9,152,291 61,323,220
Segment liabilities
Segment current liabilities 10,815,297 2,838,946 13,654,243 5,737,672 - 5,737,672 9,256,186 3,321,396 12,577,582
Segment non-current liabilities 16,239,211 4,474,736 20,713,947 4,932,112 - 4,932,112 17,553,718 4,119,759 21,673,477
Total liabilities 27,054,508 7,313,682 34,368,190 10,669,784 - 10,669,784 26,809,904 7,441,155 34,251,059
2.Segment reporting (continued)
26 weeks ended 28 September 2025 (unaudited) 26 weeks ended 30 September 2024 (unaudited) 52 weeks ended 30 March 2025 (restated)
Cake Box Ambala Total Cake Box Ambala Total Cake Box Ambala Total
£ £ £ £ £ £ £ £ £
Segment Revenue 22,284,723 6,475,207 28,759,930 18,734,746 - 18,734,746 41,939,913 840,713 42,780,626
Segment results
Underlying result 3,488,595 (104,043) 3,384,552 2,810,347 - 2,810,347 7,268,975 87,859 7,356,834
Exceptional items (80,500) - (80,500) - - - (1,189,462) - (1,189,462)
Profit before income tax 3,408,095 (104,043) 3,304,052 2,810,347 - 2,810,347 6,079,513 87,859 6,167,372
Net finance costs (557,268) (165,641) (722,909) (24,039) (24,039) (284,172) - (284,172)
Profit before income tax 2,850,827 (269,684) 2,581,143 2,786,308 - 2,786,308 5,795,341 87,859 5,883,200
Income tax expense (712,951) 67,421 (645,530) (714,510) (714,510) (1,726,006) (53,642) (1,779,648)
Profit after income tax 2,137,876 (202,263) 1,935,613 2,071,798 - 2,071,798 4,069,335 34,217 4,103,552
Effective tax rate 25.0% 25.0% 25.0% 25.6% - 25.6% 28.5% 61.1% 28.9%
Other segment information:
- Depreciation 660,007 447,932 1,107,939 597,661 - 597,661 1,232,520 6,919 1,239,439
- Amortisation 102,468 5,176 107,644 42,361 - 42,361 136,621 - 136,621
Total depreciation and amortisation 762,475 453,108 1,215,583 640,022 - 640,022 1,369,141 6,919 1,376,060
EBITDA 4,170,570 349,065 4,519,635 3,450,369 - 3,450,369 7,448,654 94,778 7,543,432
Underlying EBITDA 4,251,070 349,065 4,600,135 3,450,369 - 3,450,369 8,638,116 94,778 8,732,894
Revenue disclosures
Sales of sponge 9,026,986 - 9,026,986 7,495,650 - 7,495,650 17,699,493 - 17,699,493
Sales of food 4,587,273 - 4,587,273 3,357,468 - 3,357,468 7,436,112 - 7,436,112
Sales of fresh cream 2,285,938 - 2,285,938 2,049,968 - 2,049,968 4,223,739 - 4,223,739
Sales of other goods 4,495,648 - 4,495,648 3,790,335 - 3,790,335 8,745,817 - 8,745,817
Franchise packages 1,888,878 320,000 2,208,878 912,713 - 912,713 3,834,752 - 3,834,752
Online sales commission - - - 585,760 - 585,760 - - -
Marketing levy - - - 542,852 - 542,852 - - -
Sales from Corporate Stores - 5,474,505 5,474,505 - - - - 785,157 785,157
Online sales direct to customers - 325,964 325,964 - - - - 31,760 31,760
Wholesale sales - 354,738 354,738 - - - - 23,796 23,796
Total segment revenue 22,284,723 6,475,207 28,759,930 18,734,746 - 18,734,746 41,939,913 840,713 42,780,626
3.Dividends
26 weeks to 26 weeks to 52 weeks to
28 September
30 September
30 March
2025
2024
2025
(unaudited)
(unaudited)
(audited)
£ £ £
Dividends paid 2,992,000 2,440,000 3,800,000
4.Share Capital
26 weeks to 26 weeks to 52 weeks to
28 September
30 September
30 March
2025
2024
2025
(unaudited)
(unaudited)
(audited)
£ £ £
44,000,000 Ordinary Shares of £0.01 440,000 400,000 440,000
5.Earnings per share
The basic earnings per share is calculated by dividing the earnings
attributable to equity shareholders by the weighted average number of shares
in issue. In calculating the diluted earnings per share, share options
outstanding have been taken into account where the impact of these is
dilutive.
26 weeks to 26 weeks to 52 weeks to
28 September
30 September
30 March
2025
2024
2025
(unaudited)
(unaudited)
(restated)
Pence Pence Pence
Statutory earnings per share
Basic earnings per share 4.40 5.18 10.23
Diluted earnings per share 4.30 5.04 9.97
Underlying earnings per share
Basic earnings per share 4.58 5.18 13.18
Diluted earnings per share 4.48 5.04 12.85
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