Cake Box Holdings - Full Year Trading Update
("Cake Box" or the "Company" or the "Group")
Full Year Trading Update
A resilient business with an attractive offer to consumers and franchisees
Full year trading performance
In the period to
However, the Group saw a reduction in sales across its franchise stores as the COVID-19 crisis developed during the remainder of
The Group expects to report revenue for the year of c.
The Cake Box proposition remains attractive to new and existing customers across the country, offering personalisation, convenience and serving dietary requirements at an appealing price point. The Group is confident that consumers remain loyal to Cake Box and will continue to be so following the lifting of restrictions.
COVID-19 update and support for franchisees
Further to our announcement of
As a result of the above, noting that our franchise stores have relatively low levels of rent and overheads, we are very confident that our franchisees will be able to navigate this unprecedented period. The Group has very healthy stock levels and therefore is well placed to support the reopening of its franchise stores as soon as
At Group level, we are applying to the Government's Job Retention Scheme in relation to Head Office, Warehouse and Bakery staff that have been furloughed due to being unable to work in the business during the current crisis. We are also taking all other appropriate cost saving measures.
New store openings and pipeline
The Group opened 20 new high street stores in the year, including
The Group has a strong pipeline of new franchise store openings, although there may be an impact on the timing of openings as a result of COVID-19, as there has been during
Balance sheet and dividend
As reported on
The Group operates a franchise model and therefore has a relatively low and flexible cost base. Following the cost saving measures described above, the Group expects to have a monthly cash burn of c.
Despite the strength of our balance sheet, the Board feels that it is not appropriate to recommend a final dividend for FY20 with the Group's full year results. At a time when there is so much uncertainty, it seems inappropriate to use the cash for anything other than protecting the financial strength and resilience of the business. The Board recognises the importance of income to many of the Group's shareholders and will continue to assess when it is appropriate to recommence dividend payments.
Full year results date
The Group will confirm the date for its full year results for the 12 months ended
"Our first priority remains the health, safety and wellbeing of our colleagues, franchisees, customers and the communities in which we operate across the country. Whilst this is an uncertain and difficult time for the country, we are incredibly proud of the efforts of our franchisees who have been sending thousands of our cakes to front line workers to give them a slice of comfort during these challenging times.
"Whilst the current closure of our franchise stores has and will continue to have an impact on performance, we are confident that our unique customer offer will continue to resonate over the long term. Life is somewhat on hold for now, but when we emerge from this we will still have birthdays, marriages and numerous other occasions small and large to celebrate up and down the country.
"We're equally confident that our proposition to potential franchisees remains attractive. We have a strong pipeline in place to help continue to grow the Cake Box family and are developing new, innovative ways to work with our existing partners, including the expanded trial of our shopping centre kiosks. With our strong balance sheet, the actions we are taking to reduce costs and our resilient business model, we remain confident in the Group's future prospects."
For further information, please contact:
+44 (0) 20 8443 1113
+44 (0) 20 7408 4090
+44 (0) 20 3128 8570
This information is provided by RNS, the news service of the
Quick facts: Cake Box Holdings PLC
Market Cap: £66.2 m
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