Cake Box Holdings PLC Trading Update (6685X)
31 Agosto 2022 - 1:01AM
UK Regulatory
TIDMCBOX
RNS Number : 6685X
Cake Box Holdings PLC
31 August 2022
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES
OF ARTICLE 7 OF THE MARKET ABUSE REGULATION (596/2014/EU) AS THE
SAME HAS BEEN RETAINED IN UK LAW AS AMENDED BY THE MARKET ABUSE
(AMENDMENT) (EU EXIT) REGULATIONS (SI 2019/310) ("UK MAR").
31 August 2022
Cake Box Holdings plc
("Cake Box" or the "Company" or the "Group")
Trading Update
Cake Box Holdings plc, the specialist retailer of fresh cream
cakes, announces an update on current trading and outlook.
In the Group's Full Year Results on 27 June 2022, it noted that
while current trading was robust against a very strong comparative
trading period in H1 2022, the Board remained mindful of an
increasingly challenging economic and trading environment.
Since then, the trading environment has become significantly
more challenging. Inflationary cost pressures across the Group have
increased above levels previously anticipated and the Board does
not see these easing before the end of the financial year. While
the Group has passed some of the cost increases onto franchisees
with a recent price increase, the full year gross margin will be
impacted. We remain mindful of significant inflationary pressures
on our franchisees and customers across the country.
In addition, the Group has seen weaker than anticipated sales at
the franchise level during July and August which has resulted in
franchisee Like for Like* sales declining 2.8% in the first half to
date. The Group believes the summer performance has been
exacerbated by the recent heatwave which has impacted store
footfall.
Accordingly, due to the worsening outlook and increasing cost of
living pressures on the consumer, the Group now expects full year
profitability to be significantly below current market
forecasts.
The Group is taking proactive action to mitigate the impact of
increased input and administrative costs and to protect levels of
profitability, including implementing supply price increases. The
Group continues to have a strong balance sheet and had cash as at
close of business on 30 August 2022 of GBP6.7m, prior to paying the
proposed dividend of GBP2.0m in September.
Cake Box continues to increase its geographic presence, with a
strong pipeline of potential new franchisees and deposits for
sites.
Looking further ahead, the Board remains confident in the Cake
Box's future growth prospects, underpinned by the increased
investment in professionalising the Group's functions and the
pipeline of new store openings across the country, with levels of
franchisee deposits remaining at good levels.
For further information, please contact:
Cake Box Holdings plc Enquiries via MHP
Sukh Chamdal, CEO Communications
David Forth, CFO
Shore Capital
Stephane Auton +44 (0) 20 7408
Patrick Castle 4090
MHP Communications +44 (0) 20 3128
Simon Hockridge 8570
Pete Lambie cakebox@mhpc.com
* Like-for-like: Stores trading for at least twelve months prior
to 28 August 2022.
The person responsible for arranging for the release of this
announcement on behalf of Cake Box is David Forth, Interim CFO.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
TSTURRRRUVUWOUR
(END) Dow Jones Newswires
August 31, 2022 02:01 ET (06:01 GMT)
Cake Box (LSE:CBOX)
Gráfica de Acción Histórica
De Abr 2024 a May 2024
Cake Box (LSE:CBOX)
Gráfica de Acción Histórica
De May 2023 a May 2024