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LONDON (Alliance News) - Cake Box Holdings PLC on Monday reported a rise in sales and adjusted pretax profit in its maiden interim results since listing in June, prompting a dividend hike.
Cake Box operates a chain of high street shops specialising in egg-free, vegetarian cakes.
The retailer, which raised GBP16.5 million in its AIM market initial public offering, recorded adjusted pretax profit of GBP2 million for the six months to September 30, up 34% from GBP1.5 million in the year ago period. When including GBP598,645 in IPO costs, pretax profit fell to GBP1.4 million from GBP1.5 million.
Revenue for the first half jumped 44% to GBP8.3 million from GBP5.8 million. Margins improved to 44.3% from 43.4%.
Cake Box attributed the rise in first half adjusted earnings and revenue to its franchisee store roll-out strategy.
It said that several new products were launched during the period and the caramel and chocolate cheesecake products were particularly well-received.
Cake Box added added 15 new franchise stores in the six-month period and had 101 franchise stores in operation as at September 30. The company intends to open an additional warehouse and distribution centre in the north of England, which is anticipated to be in operation in the first half of 2019.
"Our performance during the first eight weeks of the second half has been encouraging and we have already opened four new stores. The group is well placed for further progress and the board remains confident of another successful year of growth," said Chief Executive Sukh Chamdal.
The company lifted its interim dividend payment to 1.20 pence per share from 1.03p.
Shares in the company were trading 3.4% higher at 182.00 pence Monday morning.
