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Cake Box expects franchisees to weather storm of coronavirus shutdown

Stock levels are also very healthy, which will help stores re-open as soon as UK government advice allows.

Cake Box Holdings PLC -
Before the virus restrictions came into force trading had been strong across the group

Cake Box Holdings PLC (LON:CBOX) expects the majority of its franchisees to come through the coronavirus crisis, said the fancy cake maker.

Rents and overheads of its outlets are relatively low, with the company helping franchisees to access the retail, hospitality and leisure grant and to furlough staff. 

Stock levels are also very healthy, Cakebox said, which will help stores re-open as soon as UK government advice allows.

Before the virus restrictions came into force trading had been strong across the group, Cake Box said, with like-for-like sales growth of 5.1% in franchise stores, but sales slowed thereafter and for the year to March rose by 2%.

Revenue for the year will be around £18.7mln, up 10% year-on-year even with coronavirus disruption, with profits to be between £4.1 - 4.3mln  (£4.0mln) including a £1.4mln  uplift in the valuation of its Enfield warehouse and head office.

Cake Box added it has a current cash balance of £4mln, with its only debt a mortgage of £1.6mln secured on its freehold properties in Enfield and Coventry.  

Even so, the company said it will not pay a final dividend for the year to March.

Shares rose 7% to 121.5p.

 

-- adds share price--

Quick facts: Cake Box Holdings PLC

Price: 188 GBX

LSE:CBOX
Market: LSE
Market Cap: £75.2 m
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