Cake Box Holdi. Regulatory News (CBOX)

30 June 2026

Cake Box Holdings plc

("Cake Box", the "Company" or the "Group")

Audited Full Year Results for the 52 weeks ended 29 March 2026

Strong growth in revenue and underlying EBITDA, supported by 37 new store openings and a maiden full year contribution from Ambala

Cake Box Holdings plc, the UK's largest retailer of fresh cream celebration cakes, announces its audited full year results for the 52 weeks ended 29 March 2026.

Financial Highlights

Group revenue increased 39.5% to £59.69m (2025: £42.78m)

Significant growth across KPIs supporting LFL growth

Current Trading and Outlook for 2027

Sukh Chamdal, Chief Executive Officer, said: "We delivered a strong performance across the year, with healthy growth in revenue and underlying EBITDA and 37 new stores opened across the Group. This reflects the disciplined execution of our growth strategy, including store expansion, positive like-for-like sales in our core Cake Box business, and sustained momentum across our multi-channel offering. Customer engagement has been good throughout the year, supported by ongoing investment in digital capability and the strength of our franchise model.

"As we indicated in our April trading update, we continue to keep a close watch on the wider macro-economic environment and consumer sentiment which is difficult to predict. We have plans in place to mitigate any potential impact on the business, including managing our cost base and supply chain for efficiencies.

"Despite these challenges, we are well positioned to deliver further growth in the year ahead. Our healthy pipeline of new franchise locations, together with the effectiveness of our multi-channel sales strategy, gives us confidence in the fundamentals and resilience of our business to continue to grow."

For further information, please contact:

Operational Review

It has been another year of excellent operational and strategic progress for the Group, with a pleasing performance across the core Cake Box business and the maiden full-year contribution from Ambala following its acquisition in March 2025.

Cake Box delivered growth across key metrics, with Group revenue increasing 39.5% to £59.69m (2025: £42.78m) and underlying EBITDA of £12.36m (2025: £8.73m). Excluding Ambala, Cake Box revenues increased 9.3% to £45.86m (2025: £41.94m), reflecting the strength and resilience of our franchise model.

Cake Box's established business model continues to perform strongly, supported by ongoing investment in its franchise network, digital capabilities, and product innovation. The Group remains focused on building a scalable and resilient business that delivers long-term value for customers, franchise partners, and shareholders.

Strengthening the Franchise Network

Franchise partners remain central to the Group's success, and the Company has continued to see significant demand for the Cake Box model across the UK. During the year, the Group expanded its estate with 37 new stores, including 25 Cake Box and 12 Ambala stores. The Group ended the year with a total of 310 stores (2025:273), with the new stores helping to strengthen the Company's national footprint.

As part of its expansion, the Group has introduced co-located stores offering both Cake Box and Ambala products. This approach allows the Company to leverage existing locations more effectively, broaden the customer appeal and drive incremental revenue opportunities.

The Group also opened in new towns and cities during the year such as Paisley and Exeter, strategically selecting attractive locations to support growth and increase brand reach. This disciplined approach to site selection, supported by specialist consultants, supports the Group's ambition to grow towards its current target of 400 Cake Box and 100 Ambala locations across the UK.

The expansion of the estate has been complemented by continued interest from both existing and prospective franchisees. An increasing number of franchisees are expanding their own number of stores, with 58 (2025: 54) franchisees now operating multiple locations.

This has contributed to the growth in Group system sales (sales from franchised and corporate stores) from £87.10m to £111.27m, and Cake Box like-for-like sales growth of 4.8%, supported by our enhanced digital platform, increased online penetration and the growth of third-party delivery platforms, including Uber Eats, Deliveroo and Just Eat.

Increased Innovation Across Product Range

Product innovation remains a key driver of customer engagement and revenue growth. During the year, the Group introduced a range of products to capture the latest trends that have resonated strongly with customers, including the expansion of the Dubai Chocolate range and the launch of the 'Bento Boxes' collection.

The Company also continued to develop seasonal and celebration-led ranges across key celebration occasions such as Mother's Day, Valentine's Day, Easter, Eid, and Diwali. This demonstrates the Group's ability to respond to evolving customer preferences and capture demand across diverse communities and peak trading periods.

Following the acquisition of Ambala, the Company has introduced collaborative product lines, leveraging the strengths of both brands. This has broadened its overall product offering, increased brand visibility, and enabled the Group to engage with a wider audience.

A Multi-Channel Approach Delivering Results

The Group has remained focused on strengthening its multi-channel strategic approach to support sustainable growth. Investment during the year has been directed towards enhancements to the Company's operational infrastructure and customer facing technology, including its website, e-commerce platform and CRM capabilities.

The digital platform continues to play an increasingly important role in customer engagement. Website orders grew by 15.9%, attracting 289k new online customers during the year, 15.8% more than 2025, driven primarily through digital marketing channels such as Google and Meta. This reflects the growing importance of digital within the Group's overall sales mix with online sales increasing by 19.7%, to £22.89m (2025: £19.12m).

The Group has also continued to build its 'Cake Box Club' loyalty programme, which reached 156k members by the end of 2026. This enables more personalised engagement with customers, supporting both repeat purchases and customer loyalty.

These initiatives, combined with the growth of third-party delivery platforms, have strengthened the Group's omni-channel offering and contributed to a more seamless customer experience. 

Integrating Ambala into the Cake Box Business

A key priority for the Group this year has been the integration of Ambala. 2026 represents the first full year of Ambala within the Group, and the Company made significant progress in establishing strong operational foundations for future growth. For 2026, Ambala contributed revenue of £14.14m and underlying EBITDA of £1.85m.

The Company's focus has been on aligning core processes, enhancing distribution capabilities, strengthening organisation structures and improving the customer experience. This has included refreshed branding, updated packaging and enhancements to the in-store experience, alongside investment in digital channels through the launch of a renewed website.

The Group has also implemented a range of cost-saving and operational initiatives to improve efficiency across manufacturing and logistics, including supply chain optimisation, increased automation and greater utilisation of Ambala's production facilities. In addition, the Group has benefitted from economies of scale through improved procurement and supplier terms.

While this has been a year of investment and integration activity, the majority of the integration work is now complete. Ambala is now better positioned to benefit from operational efficiencies, synergies and improved profitability as these initiatives are embedded across the enlarged Group.

Financial review

Financial Highlights

The Group's primary measure of performance is Underlying EBITDA. In addition, the Group presents statutory profit before tax and profit for the period, together with the corresponding underlying measures, to assist users in understanding the Group's underlying trading performance.

Group Franchise and Corporate Store Sales ('System Sales')

A key metric for measuring the revenue performance of the Group is system sales. This is the sales of finished products to the customers of the franchisees and corporate stores in the Group. These sales are either generated instore or online through the Group's e-commerce platform. Total system sales increased by 27.7% to £111.27m (2025: £87.10m). The increase was a result of a 12.4% increase in system sales for Cake Box and a maiden contribution of £14.33m (2025: £0.84m) system sales for Ambala. 

The increase in Cake Box system sales was generated from:

Reported Group Revenue

Group revenue consists of products and ingredients sold to franchisees, revenue invoiced for new store builds, recharges to franchisees and sales of Asian confectionary and savoury products through the Ambala corporately owned and franchised stores.

Reported Group revenue (including Ambala) for 2026 increased by 39.5% to £59.69m (2025: £42.78m). Group revenue from Cake Box increased by 9.3%, due to the increase in franchise store sales as well as the addition of 25 new franchise stores opening in the period. This was a very pleasing outcome, considering the continued challenging economic environment, with consumer confidence still under pressure from high interest rates, utility costs and inflation.

Ambala contributed £14.14m to Group revenue in its first full year following the acquisition.

Gross Profit

Gross profit as a percentage of Group revenue at 57.4%, was 4.9 percentage points above 2025. Cake Box gross profit margin was 53.2%, 0.5 percentage points above 2025. Ambala's gross profit was 69.9%, driven by corporate store margins. As the Ambala store estate grows through franchising, the Company expects that the gross profit margins will align more to the margins experienced in Cake Box.

In Cake Box, product margins, for food and non-food items sold to franchisees, marginally decreased to 52.6% (2025: 53.2%), as the Group absorbed certain input price increases through the financial period. Raw material costs remained stable during the year, as the Group continued to benefit from its strategy of having multiple suppliers for its main ingredients, enabling it to maintain competitive pricing.

This supplier strategy enabled the Group to minimise the increase in pricing to its franchisee partners, which in turn-maintained margins in franchised stores. Pricing increases to customers were carefully reviewed to ensure Cake Box remained competitive in the continued challenging economic climate throughout the year. The Group benefits through increased volumes from new customers drawn to the brand, which in turn increases the operational gearing of the depots.

Underlying EBITDA

Underlying EBITDA increased 41.6% to £12.36m (2025: £8.73m) as a result of the increased operational gearing of the Group during the period, as well as £1.85m maiden full year underlying EBITDA from Ambala.

Cake Box's underlying EBITDA increased 21.7% to £10.51m (2025: £8.64m). This was due to the increase in overheads of 3.0%, being well below the increase in revenues of 9.3% and gross profit of 10.3%.

Reported EBITDA was £10.55m compared to £7.54m for 2025. The difference between Reported and Underlying EBITDA is due to the non-underlying items reported in both periods. The Group incurred £1.81m of non-underlying charges in the financial period, the majority of which related to the impairment of intangible assets. The exceptional item of £1.19m in 2025 predominantly consisted of one-off costs relating to the acquisition of Ambala in March 2025.

2026 was the maiden full year contribution from Ambala, acquired on 21 March 2025.

Non-underlying items

The non-underlying items of £1.81m for the period, relates to £0.16m (2025: £1.19m) of professional fees incurred during 2026 relating to the acquisition of Ambala, which completed on 21 March 2025 and £1.65m for the impairment of intangible assets in the financial period.

During the financial year and as a result of the acquisition of Ambala, the Group reviewed its useful life of certain intangible assets, most notably the ERP and Website intangible assets. The acquisition has changed the scale, structure and system requirements of the Group and therefore rendered the existing ERP development unsuitable for the enlarged Group. Furthermore, the Group conducted a full review of the suitability of its website, which included security, following the high-profile cyber issues experienced by very well-known high-street brands. The review also included the most relevant and suitable e-commerce technology available in the marketplace, compared to its e-commerce capabilities. Following this full and intensive review, the Group made the decision to transition to the Shopify e-commerce platform. This shift is designed to reduce reliance on bespoke development, lower total cost of ownership, and provide the business with greater control, agility, and speed in delivering ongoing improvements.

The non-underlying items of £1.19m for 2025 related to one-off professional fees, due diligence and other costs relating the acquisition of Ambala.

Balance sheet

The Group's net assets have grown from £26.72m to £27.99m. Non-current assets have increased from £44.75m to £47.43m, mainly due to the capex spend of £3.19m and assets under construction of £2.57m, offset by depreciation and amortisation charges of £2.22m in the financial year.

The non-current liabilities have decreased from £21.67m to £19.35m, as a result of £2.05m repayment of the Group's debt facilities, of which £2.0m relates to the £15.2m new term loan to partly finance the purchase of Ambala in 2025.

Cash balances of £2.45m are £3.88m lower than prior period (2025: £6.33m). The Group's net debt of £10.84m (2025: £9.02m) at 29 March 2026, was 0.88x (2025: 1.03x) of underlying EBITDA.

As the Group predominantly operates a franchise model, it has relatively low capital expenditure requirements and a flexible cost base.

The Board is confident that the Group's cash levels, and liquidity are sufficient for the operational requirements of the Group.

Property

At each year end, surveyors are instructed to value the Company's four freehold depots, Enfield, Bradford, Coventry and Welwyn Garden City, to ensure a consistent value base. The new valuation has resulted in a further uplift of £0.33m in the reported values of the four sites for the consolidated report and accounts.

Taxation

The effective rate of taxation was 23.9% (2025: 30.2%). The effective tax rate was lower than the statutory rate due to adjustments relating to prior periods, partially offset by expenses not allowable for tax purposes.

Earnings per share ('EPS')

Reported basic and diluted earnings per share were 15.9% and 14.4% above the prior financial period respectively, at 11.86p (2025: 10.23p) and 11.41p (2025: 9.97p). Reported profit after tax ('PAT') was 27.2% above the prior year.

Underlying basic and diluted earnings per share was 15.97p (2025: 13.18p) and 15.36p (2025: 12.85p) respectively. These were 21.1% and 19.6% ahead of the prior financial period respectively. This is after the adjustment for the non-underlying items of £1.81m in the current financial period, compared to non-underlying items of £1.19m, in the prior period.

The number of shares in issue as at 29 March 2026, was 44,000,000. This is 4,000,000 above the Company's IPO in June 2018, due to the share issue to partly fund the acquisition of Ambala in March 2025.

Dividend

As a result of the significant profit growth and cash generation reported for the 2026 financial period, the Board is pleased to recommend a final dividend of 7.2p per share (2025: 6.80p). The total dividend for the year will total 10.8p (2025: 10.20p), a 5.9% increase year on year, continuing the progressive dividend policy employed by the Board. The dividend cover is 1.48x (2025: 1.29x) based on underlying basic earnings per share.

If approved by the shareholders at the Company's AGM on 2 September 2026, the final dividend of 7.2p will be paid on 9 September 2026. The record date for shareholders on the register will be 14 August 2026, with an ex-dividend date of 13 August 2026.

Cash position

Underlying EBITDA of £12.36m was £3.63m above the prior financial period (2025: £8.73m). Free cash flow was impacted by an increase of £1.19m in net interest paid and an increase of £0.93m in working capital. Interest paid increased due to the new debt facilities for the acquisition of Ambala and working capital increased as a result of the timing of new store invoicing at the end of the financial year.

Free cash flow generated was £9.53m (2025: £7.07m), this was offset by £5.94m of capital expenditure (2025: £3.07m), which included £2.57m for the new Bradford warehouse, classified under assets-under- construction, and returns to shareholders through dividends of £4.58m (2025: £3.8m).

The Group had £2.45m of cash and cash equivalents at year end, a £3.88m decrease on the prior financial period (2025: £6.33m). The Group's net debt position was £10.84m (2025: £9.02m), a £1.82m increase on the prior financial period. This increase is predominantly due to the funding of the new Bradford warehouse out of existing cash balances.

Net cash position is calculated by taking the cash and cash equivalents less the outstanding mortgage debt relating to the Group's freehold properties and term loans from its corporate bankers.

Capital employed and balance sheet

Property, plant and equipment increased by £4.01m, due to additions of £2.57m for assets under construction and £3.19m for further capex spend across the Group, offset by £1.34m of depreciation charged for the year. Right-of-use assets has decreased by £0.19m, as a result of £0.68m increase in Ambala store leases, offset by the amortisation charge of £0.87m for the year.

Loans to franchisees increased by £0.19m during the financial year, predominantly due to bridging loans granted to franchisees for new store openings at the end of the financial period. These bridging loans were repaid in the first quarter of the new financial period.

Provisions relate to the dilapidation provision in Ambala, for future dilapidation charges under the store lease agreements.

Working capital increased by £0.71m, due to a decrease of £0.06m in inventories, an increase of £3.10m in accounts receivable, offset by an increase of £2.33m in accounts payable. The increase in accounts receivable is due to the timing of opening of new stores and the invoicing for stores in build at the financial year end.

Outlook and current trading

Cake Box has entered the new financial year with positive momentum. Early trading in 2027 has been encouraging, with total system sales ahead of the prior year.

With a strengthened store estate, a growing digital platform and the integration of Ambala well progressed, the Group is well positioned to build on the progress made during 2026. The focus remains on expanding the Group's physical and digital footprint, strengthening customer engagement and unlocking further operational efficiencies.

The Company is confident in the resilience of its business model, supported by investment in the Group's online offering, a growing store estate, and a strong pipeline of franchise opportunities. However, the Board remain mindful of an uncertain macroeconomic environment, including geopolitical developments and continue to monitor inflationary pressures and consumer sentiment.

The combination of Cake Box and Ambala provides an excellent opportunity for future growth. They bring together complementary brands, an expanded product range and increased operational scale, positioning the Group to capitalise on market opportunities while maintaining a clear focus on profitability, cash generation and long-term shareholder value.

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

FOR THE 52 WEEKS ENDED 29 MARCH 2026

Company Registration No. 08777765

The notes form an integral part of these financial statements.

CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 29 MARCH 2026

Company Registration No. 08777765

The notes form an integral part of these financial statements.

The financial statements were approved and authorised for issue by the Board on 30 June 2026 and signed on its behalf by:

S R Chamdal

Director

CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE 52 WEEKS ENDED 29 MARCH 2026

The notes form an integral part of these financial statements.

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE 52 WEEKS ENDED 29 MARCH 2026

The notes form an integral part of these financial statements.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE 52 WEEKS ENDED 29 MARCH 2026

1. General information

Cake Box Holdings Plc is a listed company limited by shares, incorporated in England and Wales, with company number 08777765 and domiciled in the United Kingdom. Its registered office is 20 - 22 Jute Lane, Enfield, Middlesex, EN3 7PJ.

The financial statements cover Cake Box Holdings Plc ('Company') and the entities it controlled at the end of, or during, the financial year (referred to as the 'Group').

The Group is a specialist retailer of fresh cream cakes, Asian confectionary and savoury products and franchise operator.

2. Material accounting policy information

2.1 Basis of preparation of financial statements

The financial information set out in this statement does not constitute statutory accounts as defined in section 435 of the Companies Act 2006. This set of financial results was approved by the Board on 29 June 2026. The financial information for the 52 weeks ended 29 March 2026 and the year ended 30 March 2025 have been extracted from the statutory accounts for each year. The auditor's report on the 2026 statutory accounts was (i) unqualified, (ii) did not include references to any matters to which the auditor drew attention by way emphasis without qualifying its reports and (iii) did not contain statements under section S498(2) or S498(3) of the Companies Act 2006.

While the financial information included in this preliminary announcement has been prepared in accordance with the recognition and measurement criteria of International Financial Reporting Standards, this announcement does not itself contain sufficient information to comply with those standards. The Company expects to publish full financial statements that comply with International Financial Reporting Standards in August 2026.

The consolidated financial statements for the 52 weeks ended 29 March 2026 have been prepared in accordance with United Kingdom adopted International Financial Reporting Standards (UK adopted IFRS) and those parts of the Companies Act 2006 that are applicable to companies which apply UK adopted IFRS.

The consolidated financial statements have been prepared under the historical cost convention, other than freehold land and buildings which are measured at fair value.

The numbers presented in the financial statements have been rounded to the nearest pound (£) unless otherwise stated.

Prior-period restatement

In accordance with IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors, management has identified and corrected errors in the acquisition accounting for Ambala Foods Limited, together with an unadjusted error carried forward from the 2025 audit.

(a) Nature of the prior-period errors:

(b) Amount of the corrections for the Statement of Financial Position for the prior financial period ending 30 March 2025

(c) Amount of the corrections for the Cash flow Statement for the prior financial period ending 30 March 2025

Explanation of movements in cash flow:

(d) Earnings per share - IAS 33

The correction to administrative expenses reduces prior-year basic and diluted EPS by 0.67 pence, to 10.23 pence and 9.97 pence respectively.

(e) Correction at the beginning of the earliest period presented

The cumulative effect of the corrections on equity at 31 March 2024 (the opening balance of the earliest comparative period presented) was £NIL, as the Ambala acquisition occurred after that date.

Goodwill and other intangible assets arising from business combinations

Goodwill arising on consolidation represents the excess of the fair value of the consideration given over the fair value of the identifiable net assets acquired. Goodwill is capitalised on the balance sheet and subject to an annual impairment test, or more frequently if there are indicators of impairment. Impairments to goodwill are charged to the income statement in the period in which they arise.

Business combinations are accounted for using the acquisition method as at the acquisition date, which is the date on which control is transferred to the Group. The Group determines whether a particular set of activities and assets is a business by assessing whether the set of assets and activities acquired includes, at a minimum, an input and substantive process and whether the acquired set has the ability to produce outputs.

The carrying amounts of the Group's non-financial assets, other than deferred tax assets, are reviewed at each reporting date to determine whether there is any indication of impairment. If any such indication exists, then the asset's recoverable amount is estimated. For goodwill, the recoverable amount is estimated each period end at the same time.

Acquisition costs that are directly attributable to the business combination are expensed in the income statement.

The recoverable amount of an asset or cash-generating unit is the greater of its value in use and its fair value less costs to sell. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. For the purpose of impairment testing, assets that cannot be tested individually are grouped together into the smallest group of assets that generates cash inflows from continuing use that are largely independent of the cash inflows of other assets or groups of assets (the "cash-generating unit"). The goodwill acquired in a business combination, for the purpose of impairment testing, is allocated to cash-generating units, or ("CGU"). Subject to an operating segment ceiling test, for the purposes of goodwill impairment testing, CGUs to which goodwill has been allocated are disaggregated so that the level at which impairment is tested reflects the lowest.

An impairment loss is recognised if the carrying amount of an asset or its CGU exceeds its estimated recoverable amount. Impairment losses are recognised in profit or loss. Impairment losses recognised in respect of CGUs are allocated first to reduce the carrying amount of any goodwill allocated to the units, and then to reduce the carrying amounts of the other assets in the unit (group of units) on a pro rata basis.

An impairment loss in respect of goodwill is not reversed. In respect of other assets, impairment losses recognised in prior periods are assessed at each reporting date for any indications that the loss has decreased or no longer exists. An impairment loss is reversed if there has been a change in the estimates used to determine the recoverable amount. An impairment loss is reversed only to the extent that the asset's carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortisation, if no impairment loss had been recognised.

Judgements

The preparation of financial statements under IFRS requires management to make judgements, estimates and assumptions that affect the application of accounting policies and reported amounts of assets, liabilities, income and expenses. The estimates and associated assumptions are based on historical experience and factors that are believed to be reasonable under the circumstances, the results of which form the basis of making judgements about carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates. Estimates and assumptions are reviewed on an ongoing basis and any revision to estimates or assumptions are recognised in the period in which they are revised and in future periods affected.

Expected Credit Loss Allowance

The Group exercises judgement in relation to the calculation of expected credit losses on trade receivables and franchisee loans. This includes ascertaining what constitutes a significant increase in credit risk, what is defined as loan default and how forward-looking information has been incorporated into the simplified approach for trade receivables. Please see note 30 for further details.

Key sources of estimation uncertainty

The following areas of estimation uncertainty which have had the most significant effect on amounts recognised in the financial statements:

Provisions

Provisions are recognised when there is a present legal or constructive obligation as a result of past events for which it is probable that an outflow of economic benefit will be required to settle the obligation and where the amount of the obligation can be reliably measured. The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the balance sheet date, considering the risks and uncertainties surrounding the obligation. Where a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows if the impact of discounting at a pre-tax rate is material.

The provisions provided for by the Group relate to dilapidation clauses within the lease agreements for the corporate Ambala stores. The lease agreements require that the premises are repaired, maintained and returned in good condition at the end of the lease. Management used judgement in respect of potential costs and estimates to calculate the quantum of the potential costs. The estimated dilapidation expense has been discounted back over the remaining terms of the individual leases.

Freehold property

Freehold properties are held at valuation. When measuring the fair value of an asset or liability, the Group uses observable market data as far as possible. Fair values are categorised into different levels in a fair value hierarchy based on the inputs used in the valuation techniques as follows:

The fair value of the freehold investment property, held in a subsidiary company, was determined by external, independent property valuers, having appropriate recognised professional qualifications and recent experience in the location and category of the property being valued. The independent valuers provide the fair value of the Group's investment property portfolio every 12 months.

Goodwill and other intangible assets arising from business combinations

On 21 March 2025 the Group acquired 100% of the voting equity instruments of Ambala Food Limited. Accounting for the acquisitions has required management to exercise judgement and make estimations in several areas as set out below. When the Group obtains control of a business, the business combination is accounted for using the acquisition method of accounting. By applying this method all assets acquired, and liabilities assumed are to be measured at fair value at acquisition date. The excess of the purchase consideration over the fair value of the identifiable assets, liabilities and contingent liabilities acquired (if any) is recognised as goodwill.

Goodwill is initially recognised as an asset at cost and is subsequently measured at cost less any accumulated impairment losses. Goodwill is not amortised but is tested annually for impairment, or more frequently if events or changes in circumstances indicate that it might be impaired. For the purpose of impairment testing, goodwill is allocated to each of the Group's cash-generating units (CGUs) that are expected to benefit from the combination.

Impairment is determined by comparing the recoverable amount of a CGU with the carrying amount, including goodwill. If the recoverable amount is less than the carrying amount, an impairment loss is recognised immediately in the income statement and is not reversed in subsequent periods. If the fair values of the net assets and liabilities assumed are more than the purchase consideration, the excess is recognised as a bargain purchase gain immediately in profit or loss.

The same discounted cash flow model and key assumptions used to assess the recoverable amount of goodwill are also used to assess the recoverable amount of the Company's investment in subsidiaries for impairment. Accordingly, both the Group's goodwill and the Company's investment in subsidiaries are sensitive to changes in assumptions relating to forecast cash flows, EBITDA growth rates, terminal growth rates and discount rates. Changes in these assumptions could result in a material impairment charge and therefore these balances represent a key source of estimation uncertainty.

2.2 Functional and presentation currency

The currency of the primary economic environment in which the Parent and its subsidiaries operate (the functional currency) is Pound Sterling ("GBP or £") which is also the presentation currency.

2.3 Basis of consolidation

Subsidiaries

Subsidiaries are entities controlled by the Group. The Group 'controls' an entity when it is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. The financial statements of subsidiaries are included in the consolidated financial statements from the date on which control commences until the date on which control ceases.

Changes in the Group's interest in a subsidiary that do not result in a loss of control are accounted for as equity transactions.

Transactions eliminated on consolidation

Intra-group balances and transactions, and any unrealised income and expenses arising from intra-group transactions, are eliminated.

A list of the significant investments in subsidiaries, including the name, country of incorporation and proportion of ownership interest is given in note 32 to the Company's separate financial statements.

2.4 Application of New and Revised IFRS's

2.5 Segment reporting

Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision-maker ('CODM'). The CODM, who is responsible for allocating resources and assessing performance of the operating segments, has been identified as the executive directors that make strategic decisions. Whilst the Group's trading has numerous components, following the acquisition of Ambala, the CODM is of the opinion that there are two operating segments. This is in line with internal reporting provided to the executive directors.

2.6 Going concern

The Directors pay careful attention to the cost base of the Group ensuring not only that it is kept at a level to satisfy the commercial requirements but also that it remains appropriate to the level of activity of the Group and the financial resources available to it.

The current cash balance was as at 29 March 2026 £2.45m (2025: £6.33m), and the Group continues to be cash generative.

Based on the current working capital forecast, there is no need to raise additional funds as the Group considers that it is in a position where the scenario of not meeting liabilities is remote. After making enquiries and considering the assumptions upon which the forecasts have been based, the directors have a reasonable expectation that the Group has adequate resources to

continue in operational existence for the period of at least twelve months from the date of approval of these financial statements. For these reasons, they continue to adopt the going concern basis of accounting in preparing the annual financial statements.

2.7 Revenue recognition

The Group recognises revenue from the following major sources:

Sale of sponges and related ingredients to franchisees

For sales of goods to franchisees, revenue is recognised when control of the goods has transferred, being at the point at which the goods are dispatched and delivered, which occurs on the same day. Payment of the transaction price is due within 7 days after statements are forwarded to franchisees. The Group actively works with its franchisees to ensure credit terms are met and if terms are required to be extended a suitable debt recovery plan is agreed. 

Franchise packages

The franchise packages consist of revenues which relate to pre- and post-opening costs mainly for store fit-out; and initial set up costs for pre-opening support, and franchisee and staff training.

The pre- and post-opening costs are required to get the new franchisee trading and are therefore recognised at a point in time which is at the end of the period in which trading commences.

Each package is tailored to a specific franchisee's needs and elements can be added or removed as appropriate which will affect the price. The performance obligation of the Group is met, when the store is handed over to the franchisee and he/she accepts it and commences trading. The franchisee is then obligated to settle the invoices raised by the Group for the costs incurred by the Group in getting the store in a position where it can start trading. Included in the franchise packages, is a franchise fee, the amount of which will depend on whether it is a new or existing franchisee opening the new store.

Holding deposits received from franchisees for new stores are not treated as revenue when received. The deposits are held under 'Other Payables' in the Group's financial statements. If the new store is completed and the franchisee accepts it and commences trading, the deposit is allocated against the costs associated with the new store and recognised as revenue at this point. If the new store does not proceed, the deposit is refunded to the franchisee.

Sales of Asian confectionary and savoury products

​For sales of Asian confectionary and savoury products, revenue is recognised in the Point-Of-Sale software in stores, when payment (cash or credit/debit card) is received from the customer. Online sales are recognised when payment is received via credit and debit cards from customers. For wholesale sales to stockists, sales are recognised when invoiced to third parties.

2.8 Current and deferred taxation

Current tax liabilities

Current tax for the current and prior periods is, to the extent unpaid, recognised as a liability. If the amount already paid in respect of the current and prior periods exceeds the amount due for those periods, the excess is recognised as an asset, limited to the extent that it is probable that taxable profits will be available against which those deductible temporary differences can be utilised.

A provision is recognised for those matters for which the tax determination is uncertain, but it is considered probable that there will be a future outflow of funds to a tax authority. The provisions are measured at the best estimate of the amount expected to become payable.

No material uncertain tax positions exist as at 29 March 2026. This assessment relies on estimates and assumptions and may involve a series of complex judgements about future events. To the extent that the final tax outcome of these matters is different from the amounts recorded, such differences will impact income tax expense in the period in which such determination is made.

Current taxes are calculated using tax rates and laws that are enacted or substantively enacted at the reporting date.

Deferred Tax

Deferred tax is recognised on differences between the carrying amounts of assets and liabilities in the financial statements and their corresponding tax bases (known as temporary differences). Deferred tax liabilities are recognised for all temporary differences that are expected to increase taxable profit in the future. Deferred tax assets are recognised for all temporary differences that are expected to reduce taxable profit in the future, and any unused tax losses or unused tax credits, limited to the extent that it is probable that taxable profits will be available against which those deductible temporary differences can be utilised.

The net carrying amount of deferred tax assets is reviewed at each reporting date and is adjusted to reflect the current assessment of future taxable profits. Deferred tax is calculated at the tax rates that are expected to apply to the taxable profit (tax loss) of the periods in which the Group expects the deferred tax asset to be realised or the deferred tax liability to be settled.

Deferred taxes are calculated using tax rates and laws that are enacted or substantively enacted at the reporting date that are expected to apply as or when the temporary differences reverses.

A deferred tax asset is recognised in respect of share-based payments to the extent that the tax deduction is probable, and it relates to services already received.

The asset is measured based on the expected future tax deduction under the applicable tax rules (e.g. intrinsic value of share options at exercise), even if the expense is recognised in equity for accounting purposes. Any excess between the tax deduction and accounting expense is recognised in equity.

In a business combination, deferred tax is recognised on identifiable assets acquired and liabilities assumed, where there is a difference between the fair value and tax base at acquisition. For example, deferred tax liabilities have been recognised on acquired intangible assets where the fair value uplift exceeds their tax base. These liabilities are recognised as part of the business combination accounting and increase the net identifiable liabilities, which in turn increases the amount of goodwill recognised.

Deferred tax is not recognised on:

Deferred tax assets and liabilities are offset only where there is a legally enforceable right to offset current tax assets against current tax liabilities, and they relate to income taxes levied by the same taxation authority on the same taxable entity.

Tax Expense

Income tax expense represents the sum of the tax currently payable and deferred tax movement for the current period. The tax currently payable is based on taxable profit for the year.

Income taxes are recognised in profit or loss unless they relate to items recognised in other comprehensive income or equity, in which case the income tax is recognised in other comprehensive income or equity respectively.

2.9 Property, Plant and Equipment - held at cost

Property, plant and equipment, other than freehold properties, are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Land is not depreciated. Depreciation on other assets is charged to allocate the cost of assets less their residual value over their estimated useful lives, using the straight‑line method.

Depreciation is provided on the following annual basis:

Assets under the course of construction are carried at cost less any recognised impairment loss. Depreciation of these assets commences when the assets become available for use.

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in the profit or loss.

2.10 Property, plant and equipment - held at valuation

Individual freehold properties are carried at fair value at the date of the revaluation less any subsequent accumulated depreciation and subsequent impairment losses. Revaluations are undertaken with sufficient regularity to ensure the carrying amount does not differ materially from that which would be determined using fair value at each Consolidated Statement of Financial Position date.

Fair values are determined by an independent valuer and updated by the Directors from market-based evidence.

Revaluation gains are recognised in Other Comprehensive Income. Revaluation losses are

recognised in the profit and loss, unless the losses relate to previously recognised gains, in which case it will be recognised in Other Comprehensive Income. Any excess losses are recognised in the profit or loss.

2.11 Inventories

Inventories are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis.

2.12 Financial instruments

Recognition of Financial Instruments

Financial assets and financial liabilities are recognised when the Group becomes party to the contractual provisions of the instrument.

Trade and other receivables

Trade and other receivables without a significant financing component are initially measured at transaction price which approximates fair value at the transaction date. All sales are made on the basis of normal credit terms, and the receivables do not bear interest. Where credit is extended beyond normal credit terms, receivables are measured at amortised cost using the effective interest method. All trade receivables are subsequently measured at amortised cost. At the end of each reporting period, the carrying amounts of trade and other receivables are reviewed. Impairment allowance for current and non-current trade receivables are recognised based on the simplified approach within IFRS 9 using a provision matrix in the determination of the lifetime expected credit losses. During this process the probability of the non-payment of the trade receivables is assessed. This probability is then multiplied by the amount of the expected loss arising from default to determine the lifetime expected credit loss for the trade receivables. For trade receivables, which are reported net, such allowances are recorded in a separate allowance account with the loss being recognised in the statement of profit or loss. On confirmation that the trade receivable will not be collectable, the gross carrying value of the asset is written off against the associated provision.

Other financial assets

Included in other financial assets are loans to franchisees. These loans are interest free, however include an arrangement fee, at the discretion of the Group, which is spread over the term of the loan. These loans have been discounted to fair value using a market rate. The impact of this discounting has been recognised in finance costs. At the end of each reporting period, the carrying amounts of other financial assets are reviewed on an individual balance basis and appropriate impairments are made if losses are anticipated. If a previously impaired

balance is subsequently received, the impairment is reversed through the profit and loss. See notes 29 and 30 for further details.

Trade and other payables

Trade and other payables are initially measured at fair value and subsequently at amortised cost. Trade payables are obligations on the basis of normal credit terms and do not bear interest. Trade payables denominated in a foreign currency are translated into Sterling using the exchange rate at the reporting date. Foreign exchange gains or losses are included in other income or other expenses.

Bank loans and overdrafts

All borrowings are initially recorded at fair value, net of transaction costs. Borrowings are subsequently carried at amortised cost under the effective interest method (EIR). The EIR method amortises transaction costs and spreads interest expense over the relevant period, so that the interest expense in each period represents a constant rate on the carrying amount of the liability. Interest expense on the term loan is recognised in profit or loss within finance costs using the EIR. Borrowings are classified as current liabilities unless the Group has an unconditional right to defer settlement of the liability for at least 12 months after the reporting date.

2.14 Finance costs and income

Finance costs are charged to the profit and loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Transaction costs are deducted from the amount of the borrowing at initial recognition and are part of the effective interest recognised in profit or loss.

Finance income is charged to the profit and loss on receipt or accrued if there is a signed agreement in place.

2.15 Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and deposits with maturities of three months or less from inception, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of changes in value.

Cash in transit, such as deposits sent to the bank, but not yet cleared or settled at the reporting date, is included in cash and cash equivalents where the Group retains the risks and rewards of ownership.

2.16 Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an Annual General Meeting.

2.17 Leases

The Group assesses whether a contract is, or contains, a lease, at inception of the contract. The Group recognises a right-of-use asset and a corresponding lease liability with respect to all lease arrangements in which it is the lessee, except for short-term leases (defined as leases with a lease term of 12 months or less) and leases of low value assets (such as tablets and personal computers, small items of office furniture and telephones). For these leases, the Group recognises the lease payments as an operating expense on a straight-line basis over the term of the lease unless another systematic basis is more representative of the time pattern in which economic benefits from the leased assets are consumed.

 The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted by using the Group's incremental borrowing rate.

Lease payments included in the measurement of the lease liability comprise:

The lease liability is presented as a separate line in the Consolidated Statement of Financial Position.

The lease liability is subsequently measured by increasing the carrying amount to reflect interest on the lease liability (at a constant rate) and by reducing the carrying amount to reflect the lease payments made.

The Group remeasures the lease liability (and makes a corresponding adjustment to the related right-of-use asset) whenever:

The Group did not make any such adjustments during the periods presented.

The right-of-use assets comprise the initial measurement of the corresponding lease liability, lease payments made at or before the commencement day, less any lease incentives received and any initial direct costs. They are subsequently measured at cost less accumulated depreciation and impairment losses.

Whenever the Group incurs an obligation for costs to dismantle and remove a leased asset, restore the site on which it is located or restore the underlying asset to the condition required by the terms and conditions of the lease, a provision is recognised and measured under IAS 37. To the extent that the costs relate to a right-of-use asset, the costs are included in the related right-of-use asset, unless those costs are incurred to produce inventories.

Right-of-use assets are depreciated over the shorter period of lease term and useful life of the right-of-use asset. Right-of-use assets currently in use are depreciated over 10 years, which is the term of the lease.

If a lease transfers ownership of the underlying asset or the cost of the right-of-use asset reflects that the Group expects to exercise a purchase option, the related right-of-use asset is depreciated over the useful life of the underlying asset. The depreciation starts at the commencement date of the lease.

The right-of-use assets are presented as a separate line in the consolidated statement of financial position. The Group applies IAS 36 to determine whether a right-of-use asset is impaired and accounts for any identified impairment loss as described in the 'Property, Plant and Equipment' policy.

2.18 Employee benefits

Short Term Employee Benefits

The cost of short-term employee benefits, (those payable within 12 months after the service is rendered, such as leave pay and sick leave, bonuses, and non-monetary benefits such as medical care), are recognised in the period in which the service is rendered and are not discounted.

Defined contribution pension plan

The Group operates a defined contribution plan for its staff. A defined contribution plan is a pension plan under which the Group pays fixed contributions into a separate entity. Once the contributions have been paid the Group has no further payment obligations.

The contributions are recognised as an expense in the profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Consolidated Statement of Financial Position. The assets of the plan are held separately from the Group in independently administered funds.

Termination benefits

The entity recognises the expense and corresponding liability for termination benefits when it is demonstrably committed to either of the following scenarios:

The value of such benefit is measured at the best estimate of the expenditure required to settle the obligation at the reporting date.

2.19 Provisions and contingencies

Provisions are recognised when the Group has an obligation at the reporting date as a result of a past event; it is probable that the Group will be required to transfer economic benefits in settlement; and the amount of the obligation can be estimated reliably.

Provisions are measured at the present value of the amount expected to be required to settle the obligation using a pre-tax rate that reflects current market assessments of the time value of money and the risks to a specific obligation. The increase in the provision due to the passage of time is recognised as interest expense.

Provisions are not recognised for future operating losses.

Contingent liabilities are not recognised in the consolidated financial statements. They are disclosed unless the possibility of an outflow of resources embodying economic benefit is remote. Contingent assets are not recognised in the consolidated financial statements but are disclosed where an inflow of economic benefits is probable.

2.20 Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

2.21 Research and development

Research and development expenditure is charged to the Consolidated Statement of Comprehensive Income in the year in which it is incurred.

2.22 Fair value measurement

When an asset or liability, financial or non-financial, is measured at fair value for recognition or disclosure purposes, the fair value is based on the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date; and assumes that the transaction will take place either: in the principal market; or in the absence of a principal market, in the most advantageous market.

Fair value is measured using the assumptions that market participants would use when pricing the asset or liability, assuming they act in their economic best interests. For non-financial assets, the fair value measurement is based on its highest and best use. Valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, are used, maximising the use of relevant observable inputs and minimising the use of unobservable inputs.

Assets and liabilities measured at fair value are classified into three levels, using a fair value hierarchy that reflects the significance of the inputs used in making the measurements. Classifications are reviewed at each reporting date and transfers between levels are determined based on a reassessment of the lowest level of input that is significant to the fair value measurement.

For recurring and non-recurring fair value measurements, external valuers may be used when internal expertise is either not available or when the valuation is deemed to be significant. External valuers are selected based on market knowledge and reputation. Where there is a significant change in fair value of an asset or liability from one period to another, an analysis is undertaken, which includes a verification of the major inputs applied in the latest valuation and a comparison, where applicable, with external sources of data.

2.23 Share-based payments

Where share options are awarded to staff, the fair value of the options (measured using the Black-Scholes model) at the date of grant is charged to the profit and loss over the vesting period. Non-market vesting conditions are considered by adjusting the number of equity instruments expected to vest at each reporting date so that, ultimately, the cumulative amount recognised over the vesting period is based on the number of options that eventually vest. Market vesting conditions are factored into the fair value of the options granted. The cumulative expense is not adjusted for failure to achieve a market vesting condition.

The fair value of the award also considers non-vesting conditions. These are either factors beyond the control of either party or factors which are within the control of one or another of the parties. Where the terms and conditions of options are modified before they vest, the increase in the fair value of the options, measured immediately before and after the modification, is also charged to profit or loss over the remaining vesting period.

Lapsed share options are derecognised as soon as it is known that vesting conditions will not be met. Previous charges to the Statement of Comprehensive Income are credited back to this statement.

2.24 Non-underlying items

Non-underlying items relate to significant, in nature or amount, irregular income or costs, significant impairments of assets, together with fair value movements and other costs associated with acquisitions or disposals.

2.25 Impairment of non-financial assets

Non-financial assets

At each reporting date, the Group reviews the carrying amounts of its non-financial assets to determine whether there is any indication of impairment. If any such indication exists, then the asset's recoverable amount is estimated. For impairment testing, assets are grouped together into the smallest group of assets that generates cash inflows from continuing use that are largely independent of the cash inflows or other assets of CGUs.

The recoverable amount of an asset or CGU is the greater of its value in use and its fair value less costs of disposal. Value in use is based on the estimated future cash flows, discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset or CGU. An impairment loss is recognised if the carrying amount of an asset or CGU exceeds its recoverable amount. Impairment losses are recognised in profit or loss. They are allocated first to reduce the carrying amount of any goodwill allocated to the CGU, and then to reduce the carrying amounts of the other asset in the CGU on a pro rate basis. An impairment loss is reversed only to the extent that the asset's carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortisation, if no impairment loss had been recognised.

2.26 Intangible assets

Intangible Assets Policy

Intangible assets acquired separately are measured on initial recognition at cost. The cost of intangible assets acquired in a business combination is the fair value at the date of acquisition. Following initial recognition, intangible assets are carried at cost less any accumulated amortisation and accumulated impairment losses. Internally generated intangibles, excluding capitalised development costs, are not capitalised and the related expenditure is reflected in profit or loss in the period in which the expenditure is incurred.

2.26.1. Recognition and Initial Measurement:

a. Goodwill

Goodwill is initially measured at cost, being the excess of the aggregate of the acquisition-date fair value of the consideration transferred over the net identifiable amounts of the assets acquired and the liabilities assumed in exchange for the business combination.

b. Externally acquired Brand and Intellectual Property

Brands and intellectual property (including trademarks, patents, copyrights, and proprietary technologies) acquired separately or through a business combination are recognised as intangible assets when they meet the recognition criteria: identifiability, control over the asset, and the existence of future economic benefits. The fair value is derived based on discounted cash flows from estimated recurring revenue streams. The carrying value is stated at fair value at acquisition less accumulated amortisation and impairment losses.

c. Website Costs

Expenditures related to developing or acquiring a website should be capitalised when they meet the following criteria:

d. Software

Software costs should be capitalised if they meet the following criteria:

e. Enterprise Resource Planning ('ERP') Systems

The costs related to acquiring, implementing, and customising an ERP system should be capitalised if they meet the following criteria:

2.26.2. Subsequent Expenditure

Subsequent expenditures related to intangible assets, such as enhancements, upgrades, or additions, should be evaluated to determine if they meet the criteria for capitalisation. If the subsequent expenditure enhances the future economic benefits or extends the useful life of the asset, it should be capitalised and added to the carrying amount of the asset. Otherwise, the expenditure should be expensed as incurred.

2.26.3. Amortisation

Intangible assets subject to amortisation are amortised over their estimated useful lives. The amortisation method is applied consistently and reflects the pattern in which the asset's economic benefits are consumed or utilised. The amortisation expense is recorded in the organisation's financial statements.

The estimated useful lives for current and comparative periods are as follows:

2.26.4. Monitoring and Impairment Testing

a. Regular Reviews:

Periodic reviews are conducted to assess the ongoing value and useful life of intangible

assets. Changes in market conditions, technology advancements, or other factors are considered during these reviews.

b. Impairment Testing:

If indicators of impairment exist, such as a significant decline in the asset's market value or changes in the asset's usefulness, an impairment test is performed. If an impairment is identified, the asset's carrying amount is reduced to its recoverable amount, and an impairment loss is recognised in the financial statements.

2.27 Assets classified as held for sale

Non-current assets are classified as held for sale when their carrying value will be recovered principally through a sale transaction rather than through continuing use. This classification is applied when the following criteria is met:

- the asset is available for immediate sale

- there is a commitment to sell the asset

- an active programme to find a buyer has been initiated

- the sale is highly probable

Once classified as held for sale the assets are not depreciated or amortised. The assets classified as held for sale are presented separately from other assets, below current assets in the Consolidated Statement of Financial Position.

2.28 Costs to fulfil a contract

Costs to fulfil a contract relates to the deferral of costs associated with new store build projects at the financial year end, which will be completed post the year end. Franchisees enter into a Build Contract for new stores, wherein the terms of the new store build project are set out.

2.29 Contract liabilities

The store build contract entered into between the Group and franchisees, sets out the payment obligations of the franchisee prior to the new store completion and handover ready to commence trading. Revenue recognised on new stores in build and not completed by the financial year end, is recognised as Contract liabilities. The revenue is recognised once the store build is complete, related performance obligations met and the store commences trading.

3. Segment reporting

Following the acquisition of Ambala Foods Limited, cash generating units reported to the CODM are separately identifiable and as such the Group considers there to be two reporting segments, Cake Box and Ambala. These are considered the Group's operating segments as the information provided to the Board, is based on these two business units. Revenue included in each segment includes all sales made to franchise stores and by corporate stores located in that segment. All sales occurred in the United Kingdom for both segments and financial periods. The Group was not reliant upon any major customer during 2026 or 2025.

Segment assets and liabilities

Segment performance

*Underlying result and underlying EBITDA excludes the impact of non-underlying items

4. Expenses by nature

The Administrative expenses have been arrived at after charging/(crediting):

*Split out from 'other costs' in the prior year

5. Operating profit

The operating profit is stated after charging/(crediting):

6. Net finance costs

7. Staff costs

Staff costs, including directors' remuneration, were as follows:

The average monthly number of staff, including directors, for the year was 377 (2025:185).

The breakdown by department is as follows:

8. Dividends

9. Directors' remuneration and key management personnel

The Directors' remuneration is disclosed within the Directors' Remuneration Report. The Executive Directors and Non-Executive directors are considered key management personnel. Employers NIC paid on Directors' remuneration in the year was £228,012 (2025: £165,384).

10.  Non-underlying items

Impairment of ERP intangible asset

During 2022 the Group embarked on a programme to replace its current systems with a new ERP system, Microsoft Dynamics. The project plan was based around replacing the warehouse system in the first instance, followed by the financial systems.

Following the acquisition of Ambala, the Group performed an impairment indicator assessment in accordance with IAS 36 (Impairment of Assets), as the original ERP development plan was fundamentally altered. The warehouse system component, which represented a core element of the asset's intended use, was deemed not suitable and discontinued.

The acquisition of Ambala materially changed the scale, structure, and system requirements of the Group, rendering the existing ERP development unsuitable for the enlarged Group, and as such the ERP development was not completed or deployed and would not generate future cash flows, either independently or as part of a cash-generating unit. The recoverable amount of the asset has been assessed as the higher of value in use and fair value less costs of disposal. Both of these have been assessed as £NIL, and therefore the ERP costs in relation to the development of the warehouse system have been fully impaired.

Impairment of omni-channel development

During 2022 the Group embarked on a strategic initiative to modernise the technology deployed, moving towards a more flexible, headless architecture, where the Group would not be reliant on external developers. This dependency constrained the Group's ability to respond quickly to commercial opportunities and limited internal control over the various technologies employed. The migration included a bespoke new EPOS development integrated with the various e-commerce solutions.

Following the acquisition of Ambala, the Group undertook an intensive review of the most suitable and relevant e-commerce technology in the marketplace, which would work seamlessly across the Group's various brands and fulfilment methods.

The Group has made the decision to transition to Shopify, which reflects a strategic shift in response to changes in the e-commerce landscape, where SaaS platforms offer mature, secure and scalable solutions. The move is designed to reduce reliance on bespoke development and provide the Group with greater control, agility and speed in developing ongoing improvements. Development of the new Shopify website commenced during 2026 and is due to be completed by August 2026.

As a result, intangible software assets relating to the previous omni-channel developments have been identified as having no further economic value to the Group and have been fully impaired. These intangible software assets were all in the Cake Box CGU. The amount of the impairment is equal to the carrying value of the assets at the financial period end.

Professional fees

The Group incurred one-off professional fees and costs in connection with the acquisition of Ambala Foods Limited. These costs relate to advisory services provided in the year and are non-recurring in nature. Accordingly, they have been presented as a non-underlying item.

Prior year non-underlying item

As a result of the Group launching its new website during the period, a one-off impairment of the costs to develop the previous website had been accounted for.

The prior year non-underlying item relates to the impairment of costs to develop the previous Ambala website. Following the acquisition it was decided to have both Cake Box and Ambala on the same web-platform.

11.  Taxation