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(Alliance News) - Cake Box Holdings PLC on Monday reported a "strong performance" for financial 2020 and said it has seen an improving sales trend since reopening of stores with positive like-for-like growth in the week commencing June 1.
The Enfield, Middlesex-based egg-less cake retailer said it has opened 131 of its 133 stores as at June 1 and 75% of the stores opened are trading at pre Covid-19 levels. Production also has resumed across all sites with reduced staffing levels to adhere to the UK government's distancing guidelines, it added.
For the year to March 31, Cake Box recorded pretax profit of GBP3.76 million, down 1.2% from GBP3.81 million the year before. Revenue increased strongly, but profit was hurt by a rise in administrative costs to GBP4.9 million from GBP3.7 million. Gross margin improved to 46.7% from 45.7%.
Annual revenue surged 11% year-on-year to GBP18.7 million from GB16.9 million, with franchisee store turnover rising 19% to GBP36.5 million and franchise online sales surging 25% to GBP5.5 million.
Same-store franchise sales growth in financial 2020 stood at 2.0%, slowing from 6.5%. The slower growth was blamed upon Covid-19 pandemic hurting sales from March 8. Franchise store like-for-like sales were increased by 5.1% up to March 8.
Cake Box opened 20 new franchise stores in financial 2020, taking the total number of franchise stores to 133 at the year-end. Since the start of financial 2020, the company has opened two franchise new stores, which had been already fitted out in March.
Chief Executive Officer Sukh Chamdal said: "We remain confident that our proposition to potential new franchisees remains attractive. We have a strong pipeline in place to help continue to grow the Cake Box family and are developing new, innovative ways to work with our existing partners, including the expanded trial of our shopping centre kiosks.
"With our strong balance sheet, the actions we are taking to reduce costs and our resilient business model, we remain confident in the Group's future prospects."
Cake Box has decided against declaring a final payout for financial 2020 versus 2.4 pence per share paid in financial 2019.
Shares in the company were down 1.1% at 160.75 pence each in London on Monday morning.
By Tapan Panchal; tapanpanchal@alliancenews.com
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