Cake Box profits rise 14% amid boost from new store openings
Source - SMW
Cake Box saw annual profits rise 14% as its maiden results were boosted by a 'strong' pipeline of new store openings.
For the full year ended 31 March 2019, pre-tax profits were up 14% to £3.8m and revenue nearly 30% to £16.9m, but like-for-like sales slowed to 6.5% in franchise stores from 15% a year earlier.
Franchisee total turnover was up by 18% to £30.7m and online sales up 58% to £4.4m, with 27 new franchise stores added in the year, the company said.
The company recommended a final dividend of 2.4p per share, up 50% on last year, bringing the total dividend for the year to 3.6p per share.
'In the year Cake Box celebrated its 10th birthday, I'm delighted to be announcing such a strong set of maiden full year results as a listed business. In just a decade, we have developed a unique proposition and a much-loved national brand which has significant potential for significant further expansion, as we look to introduce more customers to our fabulous fresh cream cake offering,' said Sukh Chamdal, Chief Executive Officer.
'In the past financial year, we have made good progress with our strategic priorities of new store growth, growing our existing stores, introducing new products lines and developing our digital marketing. We are pleased that our geographical spread has increased but there remain plenty of regions where we are confident there is still significant scope for expansion.'
'The new financial year has started well and we have already opened four new franchise stores, with two more expected to open before the end of June 2019. The Group is well placed for further progress and the Board is confident of another successful year of growth.'