TIDMCBOX
RNS Number : 5733R
Cake Box Holdings PLC
08 November 2021
Cake Box Holdings plc
("Cake Box", "the Company" or "the Group")
Unaudited Half Year Results for the six months ended 30
September 2021
Record first half performance with further strong growth and
strategic progress
Cake Box Holdings plc, the specialist retailer of fresh cream
cakes, today announces its half year results for the six months
ended 30 September 2021 ("H1 FY22").
Financial Highlights
Half year ended Half year ended Change
30 September 2021 30 September
2020
(H1 FY22) (H1 FY21) (2)
-------------------
Revenue GBP16.47m GBP8.59m +91.8%
------------------- ---------------- --------
Gross profit GBP7.61m GBP4.16m +83.1%
------------------- ---------------- --------
EBITDA (1) GBP4.14m GBP1.98m +109.1%
------------------- ---------------- --------
Pre-tax profit GBP3.70m GBP1.66m +122.2%
------------------- ---------------- --------
Net cash GBP4.15m GBP3.80m +9.2%
------------------- ---------------- --------
Cash at Bank GBP5.57m GBP5.34m +4.3%
------------------- ---------------- --------
Earnings per share 7.46p 3.45p +116.2%
------------------- ---------------- --------
Interim dividend 2.50p 1.85p +35.1%
------------------- ---------------- --------
-- Strong growth across all financial metrics
-- For the four months to 30 September 2021 (3) , when the full
store estate had reopened in FY21:
o Revenues up 50.5% to GBP11.2m (four months to 30 September
2020: GBP7.4m)
o Gross profit up 48.0% to GBP5.5m (four months to 30 September
2020: GBP3.7m)
o Pre-tax profit up 56.7% to GBP2.6m (four months to 30
September 2020: GBP1.65m)
-- Balance sheet and cash generation remain strong
o Cash from operations of GBP2.4m (H1 FY21: GBP2.0m)
o GBP4.15m net cash (H1 FY21: GBP3.80m)
-- Interim dividend of 2.50p per share up 35.1% (H1 FY21: 1.85p)
Operational highlights
-- 174 franchise stores in operation at 30 September 2021 (30 September 2020: 139)
-- 20 new franchise stores added in the period (H1 FY21: six new franchise stores)
-- Successful trial of seven kiosks in Asda
-- No disruption to operations from supply chain
-- Continued successful launch of new product ranges, including "naked cake" range
Franchisee Store highlights
-- Like-for-like sales growth of 13.3% in franchise stores in
the four months to 30 September 2021 (4) (H1 FY21: 12.1%)
-- Franchisee total turnover up 73.2% to GBP29.5m (H1 FY21:
GBP17.0m); four months to 30 September 2021 up 31.6% to GBP19.4m
(H1 FY21: GBP14.8m)
-- Franchisee online sales up 68.1% to GBP6.7m (H1 FY21:
GBP4.0m); four months to 30 September 2021 up 37.0% to GBP4.6m (H1
FY21: GBP3.4m)
Current trading
-- Three new stores opened in the five weeks since the half year end
-- Trading remains strong with franchisee like for like sales at
14.4% in October and online sales up 46.6% in October
-- Four new kiosks opened in Asda stores following the successful trial in seven locations
-- Intention for further roll out of Asda kiosks during the remainder of FY22
-- Targeting 32 new franchise store openings in FY22 underpinned
by record number of deposits from prospective franchisees and
openings to date during the year
-- Supply chain remains robust, with several months of ingredients in stock
-- Confident in meeting full year expectations
(1) EBITDA is calculated as operating profit before
depreciation
(2) FY21 half year includes six weeks during which all stores
were closed which impacted first 2 months
(3) Four months June-September 2020 excludes the impact of the
March 2020 lockdown and associated store closures to provide a more
relevant comparable period
(4) Like-for-like: Stores trading for at least one full
financial year prior to 30 September 2021
Sukh Chamdal, Chief Executive Officer, commented:
"I'm delighted to report another strong performance over the
last six months, demonstrating the continued appeal of Cake Box's
unique offering. Our fantastic franchisees, supported by their
dedicated team members, have helped us deliver record first half
store openings, revenues, profits and dividends, while making
further significant strategic progress that gives us momentum into
the second half.
Our proven franchisee model continues to deliver and we now plan
to open up to 32 new franchise stores this year, helping more
entrepreneurs than ever build their own businesses and serve their
local communities.
Despite continued uncertainty in the wider environment, it's
clear that our unique customer proposition remains highly
attractive as more customers choose our delicious, egg-free cakes
to celebrate important occasions or simply satisfy their appetites
for a tasty treat.
We look ahead with confidence in meeting full year expectations
and making further progress in the years ahead."
Analyst presentation
There will be a presentation for analysts this morning at
09:30am at the offices of MHP Communications. If you would like to
attend in person or virtually, please contact cakebox@mhpc.com
For further information, please contact:
Cake Box Holdings plc
Sukh Chamdal, CEO
Pardip Dass, CFO +44 (0) 20 8050 2026
Shore Capital (Broker and NOMAD)
Stephane Auton
Patrick Castle
Fiona Conway - Corporate Broking +44 (0) 20 7408 4090
MHP Communications (Financial PR)
Oliver Hughes
Simon Hockridge
Charlie Barker
Pete Lambie +44 (0) 20 3128 8570
Operational Review
Another strong half year performance
We delivered another pleasing performance in the first half of
the year, with strong trading across the Group's store estate and
online delivery channels, as customers continued to respond well to
the core Cake Box product proposition and its brand marketing
through local store marketing and social media.
This performance is testament to the continued dedication and
hard work of the entire Cake Box Family, with over 90 fantastic
franchisees and their staff members continuing their
entrepreneurial journeys and serving their local communities.
This translated into strong growth across key financial metrics,
with revenues up 92% to GBP16.4m (H1 FY21: GBP8.6m) and pre-tax
profits more than doubling to GBP3.70m (H1 FY21: GBP1.7m). Looking
at the four months to 30 September 2021, which excludes the impact
of the March 2020 lockdown and associated store closures, r evenues
were up over 50% at GBP11.2m (4 months H1 FY21: GBP7.4m) and
pre-tax profits up 56.7% to GBP2.6m over the same period. Total
franchisee sales up 13.3% on a like-for-like* basis to GBP19.4m
Exceptional growth of the Group's store estate
The Group opened 20 new franchise stores in the period
(excluding kiosk openings), with the total number of stores at 30
September 2021 being 174 (H1 2020: 139). New locations added in the
period include Fulham (London), Stevenage and Hull. The Group
continuously evaluates the financial and quality standards of the
franchise store estate and as a result three stores were closed
during the period.
The appeal of the Group's franchise proposition is reflected in
the current pipeline of new potential franchisees, with a record 62
deposits held at period end.
Continued strategic progress
We made further progress on our strategic initiatives to
complement our franchise store estate growth and give the brand an
even bigger reach. These initiatives are designed to enable new and
existing franchisees to grow their businesses and our brand through
new channels such as kiosks and online delivery through third party
platforms, as well as our own delivery platform.
Accordingly, the Group has continued the roll out of its kiosk
offer from existing franchise stores, with a net three new shopping
centre kiosks opened in the period, including in the Arndale and
Trafford centres in Manchester, taking the total to 19.
The successful trial of kiosks with the Asda supermarket chain
expanded in the period, with two new kiosks opened, taking the
total number of supermarket kiosks to seven.
Continuing to refresh the Group's core celebration cake range
remains an important element of the Group's differentiated product
offering. New launches during the period include the "naked cake"
collection, which customers have responded well to.
We also continued to invest in future proofing the business and
providing ourselves with the infrastructure to support our ongoing
growth. We opened our new Coventry warehouse and distribution
facility in April 2021 - our third warehouse and distribution
facility, with sponge production capability that enables us to
continue to reduce our existing distribution costs and provide a
back up to our other production facilities in Enfield and Bradford.
This has also created skilled employment opportunities in the area
and reduced food delivery miles, supporting our goal of mitigating
our environmental impact.
In addition, we have continued to invest in other areas of the
business to position us for further growth. We have strengthened
our internal IT capabilities by appointing an experienced IT
Director and further invested in our IT systems. We have also
appointed BDO to assist with implementing improved internal audit
practices.
Further investments in people include the appointment of a
Procurement manager and, in the second half, at a senior management
level, we expect to create a new Head of Marketing role and to add
a very senior hire in the Group's Operations function.
2020 data breach announced during H1
During the period, Cake Box announced that it had experienced a
data breach in 2020. The Company is confident with all the actions
it has taken in relation to the matter and that the exceptional
provision of GBP486k as detailed in the full year results will be
sufficient to cover all costs relating to the matter.
Balance Sheet and Cashflow
The Group's balance sheet remains strong, underpinned by the
highly cash generative nature of our business model. Cash at period
end was GBP5.6m, 4.3% higher than at the same point last year. The
Group's net cash position also increased, by 9.2% to GBP4.15m (H1
FY21: GBP3.80m).
Dividend
In line with our progressive dividend policy to reflect the cash
generation and earnings of the Group, today we are declaring an
interim dividend of 2.5 pence per share representing an increase of
35.1% from last year.
The interim dividend will be paid on 10(th) December 2021 to
those shareholders on the register at the close of business on
19(th) November 2021. The ex-dividend date is therefore 18(th)
November 2021.
Outlook
Trading momentum has continued during the first five weeks of
the second half, with three new franchise stores opened across
various UK locations in Penge and Chingford in London and Shirley
in the West Midlands.
The franchise store estate traded well in October, with
like-for-like sales increasing by 14.4% and online sales continuing
to grow strongly, up 46.6% in the five weeks since the end of
September versus the same period last year.
The Group's supply chain remains robust, with several months of
ingredients on hand and no disruption to supply to date.
With more deposits for new franchise stores held than ever
before and 23 new franchise stores already opened during the
financial year to date, we are now targeting up to 32 franchise
stores openings for FY22.
Alongside this, we have partnered with Asda supermarket and
following the successful trial of 7 kiosks we have added a further
4 kiosks since 30 September 2021 and have the intention to roll out
more kiosks in Asda during the remainder of FY22.
Despite continued uncertainty in the operating environment, it's
clear that our unique proposition for customers and new and
existing franchisees remains highly attractive, while more and more
customers choose our cakes to celebrate important moments or
satisfy their appetite for a tasty treat.
Looking ahead, the Board is confident of making further progress
in the second half and meeting full year expectations.
CAKE BOX HOLDINGS PLC
UNAUDITED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE SIX MONTHSED 30 SEPTEMBER 2021
6 months 6 months 12 months
to 30 September to 30 September to 31 March
2021 2020 2021
(unaudited) (unaudited) (audited)
Note GBP GBP GBP
Revenue 2 16,471,577 8,586,565 21,910,862
Cost of sales (8,863,477) (4,431,487) (10,978,993)
----------------- ----------------- -------------
Gross profit 7,608,100 4,155,078 10,931,869
Administrative expenses (3,889,519) (2,470,351) (6,685,300)
Operating profit 3,718,581 1,684,727 4,246,569
Net finance costs (19,202) (19,501) (37,299)
----------------- ----------------- -------------
Profit before income tax 3,699,379 1,665,226 4,209,270
Income tax expense (717,333) (285,502) (842,362)
----------------- ----------------- -------------
PROFIT AFTER INCOME TAX 2,982,046 1,379,724 3,366,908
OTHER COMPREHENSIVE INCOME
FOR THE PERIOD
Revaluation of freehold property - - 24,901
Deferred tax on revaluation
of freehold property - - (4,731)
----------------- ----------------- -------------
TOTAL COMPREHENSIVE PROFIT
FOR THE PERIOD 2,982,046 1,379,724 3,387,078
================= ================= =============
EARNINGS PER SHARE
Basic 4 7.46p 3.45p 8.42p
Diluted 4 7.46p 3.45p 8.42p
The notes on pages 11-13 form part of these interim financial
statements.
CAKE BOX HOLDINGS PLC
UNAUDITED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 SEPTEMBER 2021
30 September 30 September 31 March
2020
2021 (unaudited) 2021
(unaudited) (audited)
Note GBP GBP GBP
ASSETS
Non-current assets
Property, plant and equipment 7,457,374 7,155,002 7,251,602
Other financial assets 564,194 4,000 656,004
Deferred tax asset 95,447 65,169 95,447
------------- ------------- -----------
8,117,015 7,224,171 8,003,053
------------- ------------- -----------
Current assets
Inventories 2,111,194 1,369,819 1,902,171
Trade and other receivables 2,861,845 1,603,392 2,490,217
Other financial assets 237,994 - 382,808
Cash and cash equivalents 5,565,501 5,335,601 5,125,808
10,776,534 8,308,812 9,901,060
------------- ------------- -----------
TOTAL ASSETS 18,893,549 15,532,983 17,904,113
============= ============= ===========
EQUITY AND LIABILITIES
Share capital and reserves
Issued share capital 4 400,000 400,000 400,000
Capital redemption reserve 40 40 40
Revaluation reserve 1,609,592 1,589,422 1,609,592
Share option reserve 488,596 342,996 488,596
Retained earnings 10,145,461 7,396,231 8,643,415
------------- ------------- -----------
TOTAL EQUITY 12,643,689 9,728,689 11,141,643
------------- ------------- -----------
Current liabilities
Trade and other payables 3,313,081 3,423,785 3,353,749
Short-term borrowings 167,754 167,754 167,754
Current tax payable 740,415 309,081 903,469
Provisions 243,100 - 486,319
------------- ------------- -----------
4,464,350 3,900,620 4,911,291
Non-current liabilities
Borrowings 1,252,336 1,371,179 1,318,005
Deferred tax liabilities 533,174 532,495 533,174
------------- ------------- -----------
1,785,510 1,903,674 1,851,179
TOTAL LIABILITES 6,249,860 5,804,294 6,762,470
------------- ------------- -----------
TOTAL EQUITY & LIABILITIES 18,893,549 15,532,983 17,904,113
============= ============= ===========
The notes on pages 11-13 form part of these interim financial
statements.
CAKE BOX HOLDINGS PLC
UNAUDITED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE SIX MONTHSED 30 SEPTEMBER 2021
Share capital Capital Share Revaluation Retained Total
redemption option reserve earnings
reserve reserve
GBP GBP GBP GBP GBP GBP
B a la n c e at 1 April
2 0 20 400,000 40 198,368 1,589,422 7,296,507 9,484,337
T o ta l c omp r e h
e nsi ve income - - - - 1,379,724 1,379,724
Share based payments - - 144,628 - - 144,628
Dividends paid - - - - (1,280,000) (1,280,000)
B a la n c e at 30 September
2 020 400,000 40 342,996 1,589,422 7,396,231 9,728,689
------------- ----------- -------- ----------- ----------- -----------
T o ta l c omp r e h
e nsi ve income - - - - 1,987,184 1,987,184
Share based payments - - 143,372 - - 143,372
Deferred tax on share-based
payments - - 2,228 - - 2,228
Revaluation of freehold
property - - - 24,901 - 24,901
Deferred tax on revaluation
of freehold properties - - - (4,731) - (4,731)
Dividends paid - - - - (740,000) (740,000)
------------- ----------- -------- ----------- ----------- -----------
B a la n c e at 31 March
2 0 21 400,000 40 488,596 1,609,592 8,643,415 11,141,643
------------- ----------- -------- ----------- ----------- -----------
T o ta l c omp r e h
e nsi ve income - - - - 2,982,046 2,982,046
Dividends paid - - - - (1,480,000) (1,480,000)
B a la n c e at 30 September
2 021 400,000 40 488,596 1,609,592 10,145,461 12,643,689
============= =========== ======== =========== =========== ===========
CAKE BOX HOLDINGS PLC
UNAUDITED CONSOLIDATED CASH FLOW STATEMENT
FOR THE SIX MONTHSED 30 SEPTEMBER 2021
6 months to 6 months to 12 months
to
30 September 30 September 31 March
2021 2020 2021
(unaudited) (unaudited) (audited)
GBP GBP GBP
Cash from operating activities:
Profit before income tax 3,699,379 1,665,226 4,209,270
Adjusted for:
Depreciation 425,833 292,529 670,333
Exceptional items - - 486,319
Profit on disposal of tangible
fixed assets (13,515) (7,141) (18,972)
(Increase)/Decrease in inventories (209,023) 26,415 (505,936)
(Increase) in trade and other
receivables (371,630) (144,160) (1,172,047)
(Decrease)/Increase in trade
and other payables (283,886) 650,435 1,860,396
Share based payment charge - 144,628 288,000
Finance income (1,021) (2,314) (4,087)
Finance costs 20,223 21,815 41,386
-------------- -------------- --------------
Cash generated by operations 3,266,360 2,647,433 5,854,662
Taxation paid (880,387) (652,422) (646,995)
Net cash inflow
from operating
activities 2,385,973 1,995,011 5,207,667
-------------- -------------- --------------
Cash flows from investing activities
Proceeds from sale of property,
plant and equipment 16,375 9,848 26,446
Purchase of property, plant
and equipment (634,466) (250,690) (704,959)
Interest received 1,021 2,314 4,087
Issue of loans to franchisees (41,000) - (1,016,813)
Repayment of franchisee loans 277,626 - 123,063
-------------- -------------- --------------
Net cash flows
used in
investing
activities (380,444) (238,528) (1,568,176_
-------------- -------------- --------------
Cash flows from financing activities:
Repayment of borrowings (65,669) (75,109) (128,283)
Dividends paid (1,480,000) - (2,020,000)
Interest paid (20,223) (21,815) (41,586)
-------------- -------------- --------------
Net cash flows used in financing
activities (1,565,892) (96,924) (2,189,869)
Net increase in cash and cash
equivalents 439,637 1,659,559 1,449,822
Cash and cash equivalents brought
forward 5,125,864 3,676,042 3,676,042
-------------- -------------- --------------
Cash and cash equivalents carried
forward 5,565,501 5,335,601 5,125,864
============== ============== ==============
For the purposes of the cash flow statement, cash and cash
equivalents comprise the following:
Cash at bank and in hand 5,565,501 5,335,601 5,125,864
========== ========== ==========
CAKE BOX HOLDINGS PLC
NOTES TO THE INTERIM ACCOUNTS
FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2021
1. Notes to the Interim Report
B a s is of preparation
T h e co ns olidated half-yearly fin a ncial state men t s do n
ot con stit ute s tatuto ry accou n ts wit h in t he meaning of
Section 434 of t he C o m p a nies Act 2006. T he statuto ry accou
nts f or t he year en ded 31 March 2021 have been filed with t he
Regis t rar of Co m panies at C o m panies Hou se. T he au ditor's
report on t he statuto ry accou n ts f or the year en ded 31 March
2020 was u n q ualified, did not include any matters to which the
auditor drew attention by way of emphasis and did n ot co ntain a
ny state men ts un der Section 498 (2) or ( 3) of the C o m panies
Act 2006.
The published financial statements for the year ended 31 March
2021 were prepared in accordance with International Financial
Reporting Standards as adopted for use in the EU ("IFRS").
T h e co ns olidated annual fin a ncial state men t s of Cake
Box Holdings Plc f or the year en ded 31 March 2022 w ill be prepar
ed in accordance w ith UK adopted I F RS. Accordin g l y, these
inter im f i nan cial state ments h a ve been prepared us i ng
accou nti ng policies con siste nt with t h o se w hich will be
adopted by t he Gro up in t he f i nancial statements for the year
ended 31 March 2022 but do not contain all the information
necessary for full compliance with UK adopted IFRS.
The consolidated half-yearly financial statements have been
prepared under the going concern assumption and historical cost
convention as modified by fair value for property, plant and
equipment.
B a s is of cons olidation
The Group consolidated half-yearly financial statements
consolidates the company and its subsidiaries. All intra-group
transactions, balances, income and expenses are eliminated on
consolidation.
2. Segment reporting
Components reported to the chief operating decision maker, the
board of directors, are not separately identifiable. The group
makes varied sales to its customers, but none are a separately
identifiable component. The following information is disclosed:
6 months 6 months to 12 months to
to
30 September 30 September 31 March
2021
(unaudited) 2020 2021
(unaudited) (audited)
GBP GBP GBP
Sale of goods 14,179,845 7,898,916 19,213,915
Sale of services 2,291,732 687,649 2,696,947
16,471,577 8,586,565 21,910,862
---------------- --------------- --------------
3. Dividends
6 months 6 months 12 months
to 30 September to 30 September to 31 March
2021 2020 2021
(unaudited) (unaudited) (audited)
GBP GBP GBP
Dividends paid 1,480,000 - 2,020,000
================= ================= ===================
No interim dividend (H1 FY20 1.85 per share) was declared.
4. Share Capital
6 months 6 months 12 months
to 30 September to 30 September to 31 March
2021 2020 2021
(unaudited) (unaudited) (audited)
GBP GBP GBP
40,000,000 Ordinary shares
of GBP0.01 each 400,000 400,000 400,000
================= ================= =============
On the 21 September 2021, the Group granted share options for
114,784 shares with an exercise price of GBP3.48 per share. The
options' vesting conditions are based on financial performance over
three years. An option pricing model was used to determine the
value of these options at the reporting date.
E a rnings per share
The basic earnings per share is calculated by dividing the
earnings attributable to equity shareholders by the weighted
average number of shares in issue. In calculating the diluted
earnings per share, share options outstanding have been taken into
account where the impact of these is dilutive.
6 months 6 months 12 months to
to 30 September to 30 September 31 March
2021 2020 2021
(unaudited) (unaudited) (audited)
GBP GBP GBP
Basic earnings per share 7.46p 3.45p 8.42p
Diluted earnings per share 7.46p 3.45p 8.42p
----------------- ----------------- -------------
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END
IR FFFIILALDIIL
(END) Dow Jones Newswires
November 08, 2021 02:00 ET (07:00 GMT)
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