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The Markets
by Proactive
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The Markets
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Proactive UK has moved.
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Food & drink

Sweet update from Cake Box as it lifts full-year guidance after strong H1

The bakery’s first trading update since it made its debut in June has been warmly welcomed by investors

Cake Box Holdings PLC (LON:CBOX) delivered a tasty half-year trading update on Monday morning, sending shares in the cake shop chain higher.

The company, which only joined AIM in June, said it “traded strongly” in the first six months of its financial year, boosted by a record number of new store openings and a continued rise in average sales per store.

READ: Cake Box makes sweet AIM debut

As a result, Cake Box now expects to report a 40% rise in revenues to £8.3mln for the six months ended September 30.

More importantly, the £70mln retailer, which has 102 stores across the UK, reckons its full-year results will be ahead of expectations following the solid opening six months.

“We have delivered a strong trading performance for the period, during which we successfully completed our IPO in June,” said chief executive Sukh Chamdal.

“We continue to build momentum with a record number of new franchise store openings, and an increase in the average sales per store.”

He added: “We look forward to the second half of the financial year with confidence, with a strong pipeline of new franchise stores putting us on track to match the number of stores opened during the first half.”

The full set of half-year results are due to be reported on November 26.

Shares were up 7.6% to 176p on Monday morning.

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