Cake Box Holdings PLC (LON:CBOX) has dropped guidance though trading for the year to 31 March “has been in line with its expectations”.
The AIM-listed firm said it is informing all of its franchisees to shut following government’s advice to contain the coronavirus outbreak.
The egg-free baker said lost revenue may delay new franchise store openings although the current pipeline remains “strong”.
The current cash balance if £4mln, while debt is a £1.6mln mortgage secured by freehold properties in Enfield and Coventry.
“The group operates a franchise model and therefore has relatively low levels of fixed costs and will take all appropriate measures to conserve its cash during this period,” management said.
Shares dipped 1% to 105.5p on Tuesday at the opening bell.