19 April 2022

Cake Box Holdings plc

("Cake Box" or the "Company" or the "Group")

Full Year Trading Update

Continued sustainable growth with an exceptional year for store openings

Cake Box Holdings plc, the specialist retailer of fresh cream cakes, is pleased to announce a full year trading update for the 12 months ended 31 March 2022.

Continued sustainable growth

Trading during the second half has continued to be strong across the Group's store estate and online delivery channels. Accordingly, the Group expects to report revenues for the year as up c.50% year-on-year, with adjusted profit before tax in line with market expectations.

Revenues for the ten months to 31 March 2022, excluding the impact of the March 2020 lockdown and associated store closures from the comparative period, are expected to have increased c.32%, with total franchisee sales increasing 12% on a like-for-like* basis.  

Our online delivery and Click & Collect options continue to expand the Group's customer base, and franchisee online sales increased c.41% during the year and c.27% on a ten-month basis.

An exceptional year for store openings

The Group opened 11 new franchise stores in the second half (excluding kiosk openings), bringing the total number of stores opened in the full year to 31 (FY 2021: 24), and leaving the total number of Cake Box stores at period end at 185. New locations opened in the second half include Tottenham, Plymouth and Sunderland.

There continues to be a high level of interest in Cake Box's differentiated franchise proposition, with both strong demand for new stores from existing franchisees and a pipeline of new franchisee applicants representing 53 holding deposits held at the period end.

The successful trial of Cake Box kiosks with Asda has continued to expand, with ten new kiosks opened during the year, taking the total number of Asda kiosks to 15 in addition to the Group's 20 shopping centre kiosks.

Balance sheet

The Group's balance sheet remains strong, with a significant increase in the Group's net cash position, which stands at £5.2m at period end (FY 2021: £3.6m).

Sukh Chamdal, Co-founder and Chief Executive Officer, said:

"We have delivered another record performance for the year, demonstrating the continuing appeal of our customer and franchisee proposition. Our strategy to reach customers across the UK is starting to deliver. This is thanks to the dedication, determination and commitment of the exceptional entrepreneurs in our Cake Box Family, which continues to grow, providing opportunities for entrepreneurs, creating jobs and providing delicious, fresh cream cakes up and down the country.

"With a strengthened team and investment in our operations and processes, we have all the right ingredients to continue to sustainably grow the Cake Box customer base, brand and Family."

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 *Like-for-like: Stores trading for at least one full financial year prior to 31 March 2022.