Cake Box interim profits, revenue dip after lockdown
Specialist cake retailer Cake Box reported a dip in interim profit and revenue on Monday after its stores were forced to close due to Covid-19 restrictions.
In the six months to 30 September, pre-tax profit edged down 4% to £1.66m on revenue of £8.59m, down 2% on the same period a year ago. Earnings per share fell 6% but the company upped its interim dividend by 15% to 1.85p a share, which it said reflected strong cash generation.
Online sales during the half increased 51% after the company launched a new home delivery proposition via Uber Eats, Just Eat and Deliveroo.
The interim period included six weeks during which Cake Box’s stores were forced to close due to the Covid-19 lockdown, but the group said trading recovered strongly as its store estate began to reopen from mid-May.
This led to revenue growth of 30% to £8.6m in the 20 weeks to 30 September, while store like-for-like sales rose 12.1%.
Chief executive officer Sukh Chamdal said: "We have shown considerable resilience during an unprecedented half year period and have emerged a stronger business for it. This is demonstrated by the strength of our trading momentum since reopening the business, with our franchisee like-for-like sales up by 12.1%, including a 51% increase in online franchisee sales, six new franchise stores opened and a record number of new store applications.
"This gives us confidence that the momentum in our national rollout will return to pre-Covid levels."