Cake Box Holdings PLC Full Year Trading Update (6624W)
April 19 2023 - 2:00AM
UK Regulatory
TIDMCBOX
RNS Number : 6624W
Cake Box Holdings PLC
19 April 2023
19 April 2023
Cake Box Holdings plc
("Cake Box" or the "Company" or the "Group")
Full Year Trading Update
Improved performance in the second half
Cake Box Holdings plc, the specialist retailer of fresh cream
cakes, is pleased to announce a full year trading update for the 12
months ended 31 March 2023.
Second half improvement in sales and margins
The Group expects to report revenues for the year up c.5%
year-on-year (FY 2022: GBP33.0m), with adjusted profit before tax
in line with market expectations. This reflects an improvement in
trading in the second half of the year with further new store
openings and positive like-for-like sales growth despite tough
comparatives from last year, following the easing of pandemic
lockdowns.
The cost of raw materials stabilised during the second half,
primarily due to reduced freight rates, which led to a marginal
improvement in Group margins. Franchisees continued to face
inflationary pressures but introduced measures to mitigate the
impact of increased costs and, with the help of effective marketing
initiatives, sales and margins levels were maintained.
We have been mindful to protect our value proposition with
customers. On this basis, we have been highly selective with
customer price increases and as a result, we have seen increased
customer retention and continued to attract new customers to the
Cake Box brand.
Continued growth in store estate
The Group has continued to open stores despite the challenging
economic climate that has persisted this year. The Group added 10
new franchise stores (H2 2022: 11) in the second half, bringing the
total number of stores opened in the full year to 20 (FY 2022: 24).
At the year end, the total number of Cake Box stores across the
estate stood at 205. New geographical locations opened successfully
in the second half include Oxford, Kettering and Banbury.
Balance sheet
The Group's balance sheet remains strong, with a significant
increase in the Group's net cash position, which stood at GBP6.3m
at period end (FY 2022: GBP5.2m).
Sukh Chamdal, Co-founder and Chief Executive Officer, said:
"Just as during the pandemic, we have faced an unprecedented set
of circumstances this year, with the war in Ukraine causing a rise
in energy and raw material prices and a cost of living crisis
impacting consumer confidence. The business showed resilience
during a difficult first half and, encouragingly, we have seen
sales recover in the second half, with raw material prices
stabilising.
"We continue to strengthen our team and invest in our operations
and processes, and with the dedication, determination and
commitment of our staff and franchisees we continue to grow the
Cake Box customer base and brand."
For further information, please contact:
Cake Box Holdings plc
Sukh Chamdal, CEO +44 (0) 20 8443
Michael Botha, CFO 1113
Shore Capital
Stephane Auton +44 (0) 20 7408
Patrick Castle 4090
Liberum (Joint Broker)
Clayton Bush +44 (0) 20 3100
Edward Thomas 200
MHP +44 (0) 20 3128
Simon Hockridge 8570
Pete Lambie cakebox@mhpgroup.com
* Like-for-like: Stores trading for at least one full financial
year prior to 31 March 2023.
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END
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