Cake Box Holdi. Regulatory News (CBOX)

1 September 2020

Cake Box Holdings plc

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

Trading Update

Positive current trading, repayment of furlough monies and special dividend

Cake Box Holdings plc, the specialist retailer of fresh cream cakes, today announces a trading update covering the first five months of its financial year, to 30 August 2020.

Trading performance

The period to 30 August 2020 included a period of 6 weeks during which all of the Group's stores were closed due to the UK lockdown, impacting sales. As previously announced with our full year results on 15 June 2020, the Company implemented new ways of working and gradually reopened the store estate across the country, meaning that by 1 June 2020, 131 of the 133 stores had reopened, offering a limited menu of products.

In the last three months, since the reopening of the estate, trading has been very strong, with like-for-like sales growth of c.14.1% in franchise stores. Online sales continue to grow, up c.74% compared to the previous year three-month period. The Company is also benefiting from the increasing appeal of its delivery service through Uber Eats, Just Eat and Deliveroo.

Since the start of June, the Group opened 5 new stores including in Swindon and Basingstoke, and continues to target further new store openings, with a good pipeline of franchisees and locations to achieve this. Alongside the additional employment our new franchise stores bring to communities, we are also recruiting for certain new roles at our central HQ to support our continuing growth.

Repayment of furlough monies

During the onset of Covid-19 in the UK, Cake Box utilised the Government's Job Retention Scheme in order to protect jobs in an uncertain environment.

Given the ongoing trading performance of the Group, the Board has taken the decision to repay the monies previously received under the Job Retention Scheme, amounting to £156k, and will make no further claims under the scheme. The Group does not plan to make any claims under the Government's Job Retention Bonus.

Outlook and dividend

With one month left of the Company's half year, the Board is encouraged by the trading performance since reopening, its level of cash generation, and the prospects going forward.

Whilst the Group retains a prudent approach to capital management, the Board is confident in the strength of the balance sheet and has taken the decision to pay a special dividend of the same amount as the final dividend for the year ending 31 March 2020 that was withdrawn on 14 April 2020. As such, a payment of 3.2p per share will be made on 23 October 2020 to shareholders on the register as at 9 October 2020, with an ex-dividend date of 8 October 2020.

ENDS

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