Cake Box sees sales jump after reopening stores

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Cake Box Holdings PLC (LON:CBOX) said revenues jumped after stores reopened, while it expects three new franchisees to start trading “imminently”.

In the 20 weeks to September 30, like-for-like sales jumped 12%, while total sales rose 23% to GBP8mln thanks to the launch of the delivery service through takeaway platforms Uber Eats, Just Eat and Deliveroo.

READ: Cake Box looks tasty according to one City broker

However, the full six-month period to the end of September saw sales dipping 2% to GBP8mln since it included six weeks of closures.

Six new franchise stores were added to the cake maker’s estate, now totalling 139 sites.

The period ended with GBP5mln in the cash after the retailer repaid the funds accessed under the government’s furlough scheme.

“We suggest post lockdown LFL trading has remained in line with the over 14% previously reported,” analysts at Shore Capital commented.

“Cake Box remains immature in the UK (stores target 250) and has a capital-light franchise model forecast to drive double-digit medium-term EPS growth and attractive strong double-digit returns from an already strong balance sheet.”

Shares advanced 5% to 173.5p on Monday at the opening bell.

–Adds analyst comment–

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