Cake Box Holdi. Regulatory News (CBOX)

12 October 2020

Cake Box Holdings plc

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

Half Year Trading Update

Continued trading momentum in store and online

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 2020.

Trading momentum since reopening

As previously reported, the half year period included six weeks during which all of the Group's stores were closed due to the UK lockdown, impacting sales. Following the implementation of new ways of working, and a phased reopening programme, all of the Group's stores are now open for business.

The positive momentum in sales experienced prior to the onset of COVID-19 continued following the reopening of the Group's estate with revenues of £8.6m in the 20 weeks to 30 September 2020 (20 weeks 30 September 2019: £6.6m), with store Like for Like sales up 12.1% for the same period*. The Company has continued to see an ongoing benefit from the launch of its delivery service through takeaway platforms including Uber Eats, Just Eat and Deliveroo, with online sales increasing 81% compared to the same period last year.

For the full six month period, including the six weeks of closure, we achieved revenues of £8.6m (HY19: £8.8m).

Rollout of the Group's store estate

Six new franchise stores were added to the Group's estate during the half year, bringing the total number of stores to 139. Recent store openings included Chatham, Swindon and Hemel Hempstead. In addition, after the period end, three new franchise stores are expected to open imminently.

The Group has a very strong pipeline of new franchisees, driving confidence that the franchise store rollout programme will return to levels seen prior to the onset of COVID-19. Currently, the Group has received and is holding deposits for 47 sites across the country.

Strong balance sheet, special dividend declared

The Group had £5.0m of cash at period end, having repaid government monies received for the furloughing of Group level employees who were unable to work during the immediate impact of COVID-19.

As previously announced on 1 September 2020, the Group declared a special dividend of 3.2p per share, which will be paid on 23 October 2020.

Notice of results

The Group expects to report its results for the six months ended 30 September 2020 on 23 November 2020.

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

"This result is testament to the dedication, agility and entrepreneurial spirit of the Cake Box family, particularly our franchisees and their employees.

We continue to see strong momentum across the business both in store and online, with like-for-like sales of 12.1% since reopening the business. We have received a record number of new store applications, giving us confidence that the momentum in our national rollout will return to pre-COVID levels.

Despite the wider environment, our unique proposition for customers and potential franchisees remains highly attractive and we are confident of further progress in the second half."

For further information, please contact:

 *Like-for-like: Stores trading for at least one full financial year prior to 30 September 2020