Cake Box Holdings PLC (AIM:CBOX) said an issue related to past dividend payments has come to the board's attention during the end-of-year audit process.
"Although there were sufficient distributable reserves and cash held in the group which could have been distributed, dividends were declared at a time when the group's holding company itself, Cake Box Holdings, did not hold adequate distributable reserves by reference to its last set of annual accounts," the company said in a statement.
The company plans on putting resolutions to shareholders to address these past issues at its annual meeting, but added that trading results and financial condition remain "entirely unaffected".
The retailer of fresh cream cakes in April said it saw its 2022 profits in line as revenues jumped 50%.
Shares of the company were down 1.72% to 175.98p in London in early traders.