TIDMCBOX
RNS Number : 0571V
Cake Box Holdings PLC
12 April 2021
12 April 2021
Cake Box Holdings plc
("Cake Box" or the "Company" or the "Group")
Full Year Trading Update
Strong recovery in trading sustained through H2
Cake Box Holdings plc, the specialist retailer of fresh cream
cakes, today announces a trading update for the full year period
ended 31 March 2021 ("FY21").
Another period of strong growth in an unprecedented year
Despite the ongoing impact of the Government's lockdown
restrictions throughout the year, the Group delivered a strong
performance, with a sustained recovery in trading as shops began to
reopen after the first UK lockdown in May last year. In the 40
weeks from 1 June 2020 to 7 March 2021*, like-for-like sales in
franchise stores grew by 14.7%.
As a result, the Company expects to report record revenue for
the year up c.16% compared to the same period last year with
adjusted profit before tax in line with market expectations.
Continued growth in the Group's store estate
The Group delivered a very strong opening programme in the
second half, opening 17 new stores including Gloucester, Epsom,
Newport, Ipswich and Hove, as UK store footprint expansion
continued. Overall, there were 24 store openings during the year,
taking the total number of franchise stores in the Cake Box estate
to 157 at the period end.
The Group's pipeline of new stores remains very strong, with the
Group currently holding franchisee deposits for 52 sites across the
country. The Group is also trialling five Cake Box kiosks with a
national supermarket chain and the results so far have been very
encouraging.
Ongoing progress on strategic initiatives
The Group also continued to make progress on several strategic
initiatives over the period. This included accelerating its
delivery capabilities through the launch of its own-brand delivery
platform, with pleasing early results. This complements existing
Click & Collect and third-party delivery offerings. There was
further very substantial growth in the number of orders which were
made online during the year. Online sales were up 84% year on
year.
Following investment to support the Group's continued expansion,
operations at Cake Box's new bakery and distribution centre in
Coventry commenced in March this year, complementing existing
facilities in Enfield and Bradford.
Continuing to refresh our core celebration cake range to reflect
the latest trends remains the bedrock of the Group's differentiated
offer and during the year we introduced exciting new launches such
as an egg free custard to complement products such as our new
packaged loaf cakes. We also developed further gluten free and
vegan product options for our customers during the year.
Strong balance sheet
The Group's balance sheet remains strong, underpinned by the
highly cash generative nature of the Company's business model. Net
cash at period end was c.GBP3.6m (FY20: GBP2.1m), up 70% on the
prior year.
Reflecting the Board's confidence in the strength of the balance
sheet, the Group reinstated its interim dividend at the half year
in November, as well as declaring a special dividend on 1 September
2020, having repaid all government monies received for the
furloughing of Group level employees who were unable to work as a
result of the immediate impact of COVID-19. The Group has taken no
further Government support in the second half.
Notice of results
The Group expects to report its results for the year ended 31
March 2021 in June 2021 and will confirm the date in due
course.
Sukh Chamdal, Co-founder and Chief Executive Officer, said:
"I am very pleased with the strong trading momentum in the
second half, continuing the recovery we saw as our shops began to
reopen from May last year. Customer appetite for our products has
continued to grow, with good traction across our expanded online
and delivery services.
Our tested recipe of backing our franchisees has helped us
deliver another year of growth, and it is thanks to the dedication
of them and everyone in the Cake Box family that we have been able
to emerge stronger from a year marked by the global pandemic.
Our franchisees are job creators with the genuine
entrepreneurial spirit that will be needed to accelerate our
economic recovery as a nation out of lockdown. We welcomed 15 new
franchisees into the Cake Box family as part of the 24 new stores
opened during the year.
Despite continued uncertainty in the operating environment, our
unique proposition for customers and new and existing franchisees
remains highly attractive and we are confident of making continued
progress in the years ahead."
*Post-7(th) March 2020 business performance significantly
impacted by UK lockdown as shops shut, which skewed LFL 2021
comparisons. In the period1 June 2020 to 31 March 2021*
like-for-like sales in franchise stores grew by 19.7%. LFL
calculated from stores trading for a full year.
For further information, please contact:
Cake Box Holdings plc
Sukh Chamdal, CEO +44 (0) 20 8443
Pardip Dass, CFO 1113
Shore Capital
Stephane Auton
Patrick Castle +44 (0) 20 7408
Sarah Mather 4090
MHP Communications +44 (0) 20 3128
Oliver Hughes 8841
Simon Hockridge cakebox@mhpc.com
Charlie Barker
Pete Lambie
Isabella Grace
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