Cake Box sees full-year revenue up 30%
Cake Box, a specialist retailer of egg-free cream cakes, said on Tuesday that it expects to report a 30% jump in full-year revenue, while profits should be in line with current market expectations after strong trading.
Cake Box Holdings
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In an update for the full year to 31 March 2019, the group said it expects to post revenue of £17.1m. During the period, it saw like-for-like sales growth of 6.5% in franchise stores, down from 15% the year before, as its offering "continues to resonate with new and existing customers".
Meanwhile, average sales per store continued to grow and Cake Box opened a record 28 new stores, including Harlow, Bury and Croydon. It ended the year with 114 franchise stores.
Chief executive officer Sukh Chamdal said: "Our first year as a public company has been an exciting one. We've achieved record revenues, opened a record number of stores and continue to see strong appetite for our unique customer offer.
"As we continue to grow our presence for customers across the UK, we have invested in new facilities to support expansion, including two new warehouse and distribution centres in Bradford and Coventry.
"We believe the group ideally positioned to deliver profitable growth and enter our new financial year with confidence."
Shore Capital said openings were a little better than the 110 it had pencilled in and the update is "very positive".
The broker, which has Cake Box as a house stock, left its FY2019 forecasts unchanged at CPTP of £4.0m and EPS of 8.1p.
At 0900 BST, the shares were up 2.2% to 160p.