(Alliance News) - Cake Box Holdings PLC on Monday predicted annual profit slightly ahead of market expectations, despite a "continuing challenging economic climate" in the UK.
Cake Box expects to report a revenue rise of 9.0% for the year ended March 31, from GBP34.8 million. It expects to report adjusted profit "slightly ahead of market expectations".
Co-Founder and Chief Executive Officer Sukh Chamdal said: "We are delighted to have delivered a year of solid growth in all our key performance areas and full year profits slightly above expectations despite the backdrop of uncertain macroeconomic conditions. We expect to report an increase in all key financial metrics."
Over the last year, Cake Box has added 20 new stores in line with its rollout plan, bringing the total number of franchise stores to 225. Like-for-like sales in franchise stores are expected to increase year-on-year by 4.4%, it added.
The company noted its click and collect offering has been "increasingly popular".
Cake Box's net cash position at March 31 totalled GBP7.3 million, a 16% increase from the GBP6.3 million a year prior.
Cake Box added: "As a result of the continuing challenging economic climate facing UK consumers, the group's pricing strategy continues to be kept under regular review to ensure that the demand for Cake Box's offering remains high."
Cake Box reports annual results in June.
Shares in the company rose 3.7% to 167.00 pence each in London on Monday morning.
By Emily Parsons, Alliance News reporter
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Cake Box Holdi. (CBOX)