Cake Box Holdi. Regulatory News (CBOX)

4 October 2021

Cake Box Holdings plc

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

Half Year Trading Update

Cake Box Holdings plc, the specialist retailer of fresh cream cakes, today announces its half year trading update for the six months ended 30 September 2021.

Continued trading momentum

Trading during the first half has been strong across the Group's store estate and online delivery channels, with customers continuing to respond well to the core Cake Box product proposition and its brand marketing through social media.

Total revenues for the period were £16.4m, an increase of 91% (H1 2020: £8.6m). Revenues for the four months to 30 September 2021 were £11.1m (4 months H1 2020: £7.4m), an increase of 50% compared to the same four months last year, which excludes the impact of the March 2020 lockdown and associated store closures, with total franchisee sales increasing 13.3% on a like-for-like* basis.

The Company has continued to see strong growth from its own online delivery channels via third party platforms including Uber Eats, Just Eat and Deliveroo, with franchisee online sales increasing 68% to £6.7m during the period (H1 2020: £4.0m). On a four-month basis, franchisee online sales increased 35% to £4.6m (4 months H1 2020: £3.4m).

As a result of this strong performance, the Group is confident of making further progress over the second half and meeting full year expectations.

Exceptional growth of the Group's store estate

The Group opened 20 new franchise stores in the period (excluding kiosk openings), with the total number of stores at 30 September 2021 being 174 (H1 2020: 139). New locations added in the period include Fulham (London), Stevenage and Hull. Three stores were closed during the period.

The appeal of the Group's franchise proposition is reflected in the current pipeline of new potential franchisees, with 62 holding deposits held at period end.

Alongside growth in the franchise store estate, the Group has continued the roll out of its kiosk offer from existing franchise stores, with a net three new shopping centre kiosks opened in the period, including in the Arndale and Trafford centres in Manchester, taking the total to 19.

The ongoing trial of kiosks with a major supermarket chain has also expanded, with two new kiosks opened, taking the total number of supermarket kiosks to seven.

Product range expansion

Continuing to refresh the Group's core celebration cake range remains an important element of the Group's differentiated product offering. New launches during the period include the "naked cake" collection, which customers have responded well to.

Strong balance sheet

The Group's balance sheet remains strong, with net cash of £4.2m at period end.

Notice of results

The Group expects to report its results for the six months ended 30 September 2021 in mid-November 2021.

Sukh Chamdal, Co-founder and Chief Executive Officer, said:

"Our performance during the last six months demonstrates the ongoing appeal of our unique cake offering. With strong sales growth accompanied by record expansion of our store estate, the Board is confident of making further progress in the second half and meeting full year expectations.

"Our supply chain is robust, with several months of ingredients and the right measures in place to ensure that no event goes uncelebrated and no slice of cake goes unbaked, undelivered or uneaten.

"In light of this ongoing growth, we have continued to invest in our operations, including expanding our IT capabilities, laying the foundations for the next phase of expansion, which is underpinned by a pipeline of 62 holding deposits for new franchise stores.

"In short, more customers are enjoying our delicious egg-free cakes, and more of our fantastic franchisees are selling it to them."

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 *Like-for-like: Stores trading for at least one full financial year prior to 30 September 2021