(Alliance News) - Cake Box Holdings PLC on Wednesday said it expects full-year revenue growth of 5%, as a result of an improved performance in the second half of the year.
Shares in the Enfield, England-based specialist cream cake retailer were up 5.9% to 125.00 pence each in London on Wednesday morning.
In the year ended March 31, the company expects revenue to grow by about 5% year-on-year, from GBP33.0 million recorded in financial 2022. It also expects adjusted pretax profit to be in line with market expectations.
The company said that this reflects an improvement in trading in the second half of the financial year, with further new store openings and positive like-for-like sales growth, despite tough comparatives from last year, following the easing of pandemic lockdowns.
It added that the cost of raw materials stabilised during the second half, primarily due to reduced freight rates, which led to a marginal improvement in margins.
Cake Box also said that it has been "mindful" of prices reflected onto customers. Based on this, it has been "highly selective" with customer price increases and therefore has seen increased customer retention.
Further, the company has continued to open new stores. The company added 10 new franchise stores in the second half, bringing the total number of store opened in the year to 20.
Co-founder & Chief Executive Officer 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."
By Sophie Rose, Alliance News reporter
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Cake Box Holdi. (CBOX)