Cake Box hails positive trading momentum
Cake Box Holdings, the specialist retailer of fresh cream cakes, has said the positive trading momentum seen in the six months to 31 March has continued into its new financial year.
In a trading update issued ahead of its AGM today, the company said franchisee store like-for-like sales increased by 6.8% in the 17 weeks to 30 July.
Cake Box said it is continuing to maintain tight cost control and has been taking action to minimise the impact of inflation on its input and administrative costs. However, the company has recently invested in strengthening its marketing team, which has been focusing on raising brand awareness and expanding Cake Box’s digital and ecommerce capabilities.
The company has also opened seven new franchise stores since the beginning of the new financial year, which has taken the total to 212.
Looking ahead, Cake Box said it is on track to deliver year-on-year revenue growth in line with market expectations.
It added: “With a strong balance sheet, underpinned by a highly cash generative business model, the recent investment in professionalising the group’s functions and its baking and distribution facilities along with the strengthened sales and marketing functions, the group is well positioned to deliver shareholder value in the short- to mid-term.”
Cake Box has also announced that its non-executive chairman, Neil Sachdev, will be stepping down in November 2023 to concentrate on his growing commitments outside of the business.
Sachdev said: “Cake Box is fantastic business that has grown significantly since our IPO over five years ago. I am proud of what we have achieved, building a company that now has over 100 franchisees including a large number of female franchisees running their own businesses. We have a strong leadership team who I am confident will continue our growth in the years to come.”