Cake Box Holdings PLC (AIM:CBOX) shares rallied nearly 6% in early trade on Wednesday after the fresh cream cakes retailer reported better trading in the latter half of the year to end-March and predicted full-year profits in line with market hopes.
Revenues for the 12 months to 31 March 2023 are expected to rise by around 5% from the prior year’s £33mln, after new store openings and like-for-like sales growth resulted in an improved performance in the second half. Margins were also boosted as falling freight rates led to more stable input costs.
Cake Box added 10 new franchise stores in the second half, including in Oxford, Kettering and Banbury, and now has 205 outlets.
"Just as during the pandemic, we have faced an unprecedented set of circumstances this year, with the war in Ukraine causing a rise in energy and raw material prices and a cost of living crisis impacting consumer confidence,” commented Sukh Chamdal, Cake Box co-founder and chief executive officer, in a statement.
“The business showed resilience during a difficult first half and, encouragingly, we have seen sales recover in the second half, with raw material prices stabilising," he added.
The group had net cash of £6.3mln at the end of March, up from £5.2mln a year earlier.
Shares advanced 5.93% to 125p in early deals.