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(Sharecast News) - Cream cakes retailer Cake Box said on Wednesday that it had delivered an "improved performance" in the second half of the trading year.
Cake Box stated it had experienced an improvement in both sales and margins, with the group now expecting to report full-year revenue growth of roughly 5% year-on-year, while adjusted pre-tax profits were seen in line with market expectations.
The AIM-listed group said the cost of raw materials had stabilised during the second half, primarily due to reduced freight rates, which led to "a marginal improvement" in margins.
Cake Box also said its balance sheet remained strong, with a "significant increase" in its net cash position, which stood at £6.3m at the period end - up from £5.2m a year earlier.
Chief executive Sukh Chamdal said: "Just as during the pandemic, we have faced an unprecedented set of circumstances this year, with the war in Ukraine causing a rise in energy and raw material prices and a cost of living crisis impacting consumer confidence. The business showed resilience during a difficult first half and, encouragingly, we have seen sales recover in the second half, with raw material prices stabilising.
"We continue to strengthen our team and invest in our operations and processes, and with the dedication, determination, and commitment of our staff and franchisees we continue to grow the Cake Box customer base and brand."
As of 1020 BST, Cake Box shares were up 5.93% at 125.0p.
Reporting by Iain Gilbert at Sharecast.com