Cake Box expects record full-year revenues

Specialist cake retailer Cake Box said on Monday that it expects to report record full-year revenues as trading recovered after its stores reopened in May last year following the first lockdown.

In an update for the year to the end of March 2021, the AIM-listed company said it now expects revenues to be up 16% on the previous year, while adjusted pre-tax profit is set to be in line with market expectations.

Cake Box said that despite ongoing lockdown restrictions throughout the year, it delivered a "strong" performance, with a sustained recovery in trading as shops began to reopen after last May.

In the 40 weeks from 1 June 2020 to 7 March 2021, like-for-like sales in franchise stores grew by 14.7%.

Cake Box said its pipeline of new stores remains "very strong". It is currently holding franchisee deposits for 52 sites across the country and is also trialling five Cake Box kiosks with a national supermarket chain, with the results so far "very encouraging".

Co-founder and chief executive officer Sukh Chamdal said: "I am very pleased with the strong trading momentum in the second half, continuing the recovery we saw as our shops began to reopen from May last year. Customer appetite for our products has continued to grow, with good traction across our expanded online and delivery services.

"Despite continued uncertainty in the operating environment, our unique proposition for customers and new and existing franchisees remains highly attractive and we are confident of making continued progress in the years ahead."

At 0819 BST, the shares were up 4.7% at 266p.