Cake Box shares soar on rising profits as retailer whips up a storm
Cake Box, the specialist seller of cream cakes, has enjoyed a rise in profits of more than a quarter in the first six months of the year.
Shares in the retailer jumped seven per cent this morning, as it reported rising revenue on the back of nine new store openings during the period.
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The figures
Pre-tax profit was £1.7m for the six months ending 30 September, a 27 per cent rise on the same period last year.
Revenue rose six per cent to £8.8m, while net cash was £1.5m.
Earnings per share jumped 30 per cent to 3.67p, while the retailer hiked its interim dividend to shareholders by 33 per cent to 1.60p.
Why it’s interesting
Egg-free cake maker Cake Box said it had a “good pipeline” of further store openings during the second half of the financial year.
It added that trading in the first eight weeks of this period, since the start of October, had been “encouraging”.
Chief executive Sukh Chamdal added: “With initiatives continuing apace to enhance our product offer, and with strengthened operational capabilities through our new warehouse and distribution facilities, we remain on track for another year of growth.”
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What Cake Box said
“This has been another positive six months for the group and we’ve seen continued momentum in our second year as a listed business as we continue to drive organic growth through our existing franchise store estate, whilst opening more new stores in areas where Cake Box does not currently have a presence.”