Cake Box Holdi. Share News (CBOX)

(Alliance News) - Cake Box Holdings PLC on Monday said it made some "transcription errors" in its annual accounts and has called on experts to assist with its internal audit work.

Cake Box shares were 22% lower at 255.00 pence each in London on Monday afternoon.

The egg-free cream cake seller noted its share price decline on Monday, as well as recent commentary from a retail investor blog.

The Wembley, London-based said there were some "transcription errors" between its initial results announcement for the year that ended March 2021, published in June, and the annual report and accounts that followed.

The company added: "It also notes inconsistencies in prior period inventory reporting and comparative period disclosures relating to director interests in franchise stores. Where such discrepancies exist between the annual report and the results announcement, investors should refer to the results announcement."

Cake Box said the errors have not impacted profit, cash flow or its balance sheet. Cake Box said it "received a clean audit opinion for the year".

"As previously announced and as we continue to grow the business, a key priority for the board remains underpinning growth with the appropriate level of experience and expertise for the group's central functions, internal controls and processes," Cake Box added.

It has called on accounting company BDO to help with "implementing improved internal audit practices".

Cake Box added that trading in the second half of its current financial year has been in line with expectations.

By Eric Cunha; ericcunha@alliancenews.com

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