Information  X 
Enter a valid email address

Cake Box Holdings (CBOX)

  Print   

Monday 08 November, 2021

Cake Box Holdings

Half Year Results

RNS Number : 5733R
Cake Box Holdings PLC
08 November 2021
 

 

 

Cake Box Holdings plc

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

Unaudited Half Year Results for the six months ended 30 September 2021

 

Record first half performance with further strong growth and strategic progress

 

Cake Box Holdings plc, the specialist retailer of fresh cream cakes, today announces its half year results for the six months ended 30 September 2021 ("H1 FY22").

 

Financial Highlights

 

 

Half year ended 30 September 2021

(H1 FY22)

Half year ended 30 September 2020

(H1 FY21) 2

Change 

 

 

Revenue

£16.47m

£8.59m

+91.8%

Gross profit

£7.61m

£4.16m

+83.1%

EBITDA 1

£4.14m

£1.98m

+109.1%

Pre-tax profit

£3.70m

£1.66m

+122.2%

Net cash

£4.15m

£3.80m

+9.2%

Cash at Bank

£5.57m

£5.34m

+4.3%

Earnings per share

7.46p

3.45p

+116.2%

Interim dividend

2.50p

1.85p

+35.1%

 

· Strong growth across all financial metrics

· For the four months to 30 September 2021 3 , when the full store estate had reopened in FY21:

Revenues up 50.5% to £11.2m (four months to 30 September 2020: £7.4m)

Gross profit up 48.0% to £5.5m (four months to 30 September 2020: £3.7m)

Pre-tax profit up 56.7% to £2.6m (four months to 30 September 2020: £1.65m)

· Balance sheet and cash generation remain strong

Cash from operations of £2.4m (H1 FY21: £2.0m)

£4.15m net cash (H1 FY21: £3.80m)

· Interim dividend of 2.50p per share up 35.1% (H1 FY21: 1.85p)

 Operational highlights

· 174 franchise stores in operation at 30 September 2021 (30 September 2020: 139)

· 20 new franchise stores added in the period (H1 FY21: six new franchise stores)

· Successful trial of seven kiosks in Asda

· No disruption to operations from supply chain

· Continued successful launch of new product ranges, including "naked cake" range

 

Franchisee Store highlights

· Like-for-like sales growth of 13.3% in franchise stores in the four months to 30 September 20214 (H1 FY21: 12.1%)

· Franchisee total turnover up 73.2% to £29.5m (H1 FY21: £17.0m); four months to 30 September 2021 up 31.6% to £19.4m (H1 FY21: £14.8m)

· Franchisee online sales up 68.1% to £6.7m (H1 FY21: £4.0m); four months to 30 September 2021 up 37.0% to £4.6m (H1 FY21: £3.4m)

 

Current trading

· Three new stores opened in the five weeks since the half year end

· Trading remains strong with franchisee like for like sales at 14.4% in October and online sales up 46.6% in October

· Four new kiosks opened in Asda stores following the successful trial in seven locations

· Intention for further roll out of Asda kiosks during the remainder of FY22

· Targeting 32 new franchise store openings in FY22 underpinned by record number of deposits from prospective franchisees and openings to date during the year

· Supply chain remains robust, with several months of ingredients in stock

· Confident in meeting full year expectations

1 EBITDA is calculated as operating profit before depreciation

2 FY21 half year includes six weeks during which all stores were closed which impacted first 2 months

3 Four months June-September 2020 excludes the impact of the March 2020 lockdown and associated store closures to provide a more relevant comparable period 

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

 

 

Sukh Chamdal, Chief Executive Officer, commented:

 

"I'm delighted to report another strong performance over the last six months, demonstrating the continued appeal of Cake Box's unique offering. Our fantastic franchisees, supported by their dedicated team members, have helped us deliver record first half store openings, revenues, profits and dividends, while making further significant strategic progress that gives us momentum into the second half.

 

Our proven franchisee model continues to deliver and we now plan to open up to 32 new franchise stores this year, helping more entrepreneurs than ever build their own businesses and serve their local communities.

 

Despite continued uncertainty in the wider environment, it's clear that our unique customer proposition remains highly attractive as more customers choose our delicious, egg-free cakes to celebrate important occasions or simply satisfy their appetites for a tasty treat.

 

We look ahead with confidence in meeting full year expectations and making further progress in the years ahead."

 

 

Analyst presentation

 

There will be a presentation for analysts this morning at 09:30am at the offices of MHP Communications. If you would like to attend in person or virtually, please contact [email protected]

 

 

For further information, please contact:

 

Cake Box Holdings plc

Sukh Chamdal, CEO

Pardip Dass, CFO

 

+44 (0) 20 8050 2026

Shore Capital (Broker and NOMAD)

Stephane Auton

Patrick Castle

Fiona Conway - Corporate Broking

 

+44 (0) 20 7408 4090

MHP Communications (Financial PR)

Oliver Hughes

Simon Hockridge

Charlie Barker

Pete Lambie

 

+44 (0) 20 3128 8570

Operational Review

 

Another strong half year performance

 

We delivered another pleasing performance in the first half of the year, with strong trading across the Group's store estate and online delivery channels, as customers continued to respond well to the core Cake Box product proposition and its brand marketing through local store marketing and social media.

 

This performance is testament to the continued dedication and hard work of the entire Cake Box Family, with over 90 fantastic franchisees and their staff members continuing their entrepreneurial journeys and serving their local communities.

 

This translated into strong growth across key financial metrics, with revenues up 92% to £16.4m (H1 FY21: £8.6m) and pre-tax profits more than doubling to £3.70m (H1 FY21: £1.7m). Looking at the four months to 30 September 2021, which excludes the impact of the March 2020 lockdown and associated store closures, revenues were up over 50% at £11.2m (4 months H1 FY21: £7.4m) and pre-tax profits up 56.7% to £2.6m over the same period.  Total franchisee sales up 13.3% on a like-for-like* basis to £19.4m

 

 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. The Group continuously evaluates the financial and quality standards of the franchise store estate and as a result 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 a record 62 deposits held at period end.

 

Continued strategic progress

 

We made further progress on our strategic initiatives to complement our franchise store estate growth and give the brand an even bigger reach. These initiatives are designed to enable new and existing franchisees to grow their businesses and our brand through new channels such as kiosks and online delivery through third party platforms, as well as our own delivery platform.

 

Accordingly, 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 successful trial of kiosks with the Asda supermarket chain expanded in the period, with two new kiosks opened, taking the total number of supermarket kiosks to seven.

 

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.

 

We also continued to invest in future proofing the business and providing ourselves with the infrastructure to support our ongoing growth. We opened our new Coventry warehouse and distribution facility in April 2021 - our third warehouse and distribution facility, with sponge production capability that enables us to continue to reduce our existing distribution costs and provide a back up to our other production facilities in Enfield and Bradford. This has also created skilled employment opportunities in the area and reduced food delivery miles, supporting our goal of mitigating our environmental impact.

 

In addition, we have continued to invest in other areas of the business to position us for further growth. We have strengthened our internal IT capabilities by appointing an experienced IT Director and further invested in our IT systems. We have also appointed BDO to assist with implementing improved internal audit practices.

 

Further investments in people include the appointment of a Procurement manager and, in the second half, at a senior management level, we expect to create a new Head of Marketing role and to add a very senior hire in the Group's Operations function.

 

 2020 data breach announced during H1

 

During the period, Cake Box announced that it had experienced a data breach in 2020. The Company is confident with all the actions it has taken in relation to the matter and that the exceptional provision of £486k as detailed in the full year results will be sufficient to cover all costs relating to the matter.

 

Balance Sheet and Cashflow

 

The Group's balance sheet remains strong, underpinned by the highly cash generative nature of our business model. Cash at period end was £5.6m, 4.3% higher than at the same point last year. The Group's net cash position also increased, by 9.2% to £4.15m (H1 FY21: £3.80m).

 

Dividend

In line with our progressive dividend policy to reflect the cash generation and earnings of the Group, today we are declaring an interim dividend of 2.5 pence per share representing an increase of 35.1% from last year.

 

The interim dividend will be paid on 10th December 2021 to those shareholders on the register at the close of business on 19th November 2021. The ex-dividend date is therefore 18th November 2021.

 

Outlook

 

Trading momentum has continued during the first five weeks of the second half, with three new franchise stores opened across various UK locations in Penge and Chingford in London and Shirley in the West Midlands.

 

The franchise store estate traded well in October, with like-for-like sales increasing by 14.4% and online sales continuing to grow strongly, up 46.6% in the five weeks since the end of September versus the same period last year.

 

The Group's supply chain remains robust, with several months of ingredients on hand and no disruption to supply to date.

 

With more deposits for new franchise stores held than ever before and 23 new franchise stores already opened during the financial year to date, we are now targeting up to 32 franchise stores openings for FY22.

 

Alongside this, we have partnered with Asda supermarket and following the successful trial of 7 kiosks we have added a further 4 kiosks since 30 September 2021 and have the intention to roll out more kiosks in Asda during the remainder of FY22.

 

Despite continued uncertainty in the operating environment, it's clear that our unique proposition for customers and new and existing franchisees remains highly attractive, while more and more customers choose our cakes to celebrate important moments or satisfy their appetite for a tasty treat.

 

Looking ahead, the Board is confident of making further progress in the second half and meeting full year expectations.

CAKE BOX HOLDINGS PLC

UNAUDITED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2021

 

 

6 months to  30 September 2021

 

6 months to  30 September 2020

 

12 months to  31 March

2021

 

 

(unaudited)

 

(unaudited)

 

(audited)

 

Note

£

 

£

 

£

Revenue

2

16,471,577

 

8,586,565

 

21,910,862

Cost of sales

 

(8,863,477)

 

(4,431,487)

 

(10,978,993)

Gross profit

 

7,608,100

 

4,155,078

 

10,931,869

Administrative expenses

 

(3,889,519)

 

(2,470,351)

 

(6,685,300)

Operating profit

 

3,718,581

 

1,684,727

 

4,246,569

Net finance costs

 

(19,202)

 

(19,501)

 

(37,299)

Profit before income tax

 

3,699,379

 

1,665,226

 

4,209,270

Income tax expense

 

(717,333)

 

(285,502)

 

(842,362)

PROFIT AFTER INCOME TAX

 

2,982,046

 

1,379,724

 

3,366,908

 

 

 

 

 

 

 

OTHER COMPREHENSIVE INCOME FOR THE PERIOD

 

 

 

 

 

 

Revaluation of freehold property

 

-

 

-

 

24,901

Deferred tax on revaluation of freehold property

 

-

 

-

 

(4,731)

 

 

 

 

 

 

 

TOTAL COMPREHENSIVE PROFIT FOR THE PERIOD

 

2,982,046

 

1,379,724

 

3,387,078

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EARNINGS PER SHARE

 

 

 

 

 

 

Basic

4

7.46p

 

3.45p

 

8.42p

Diluted

4

7.46p

 

3.45p

 

8.42p

 

                                                                   

The notes on pages 11-13 form part of these interim financial statements.

 

 

CAKE BOX HOLDINGS PLC

UNAUDITED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

AS AT 30 SEPTEMBER 2021

 

 

30 September

2021

(unaudited)

30 September 2020

(unaudited)

31 March

2021

(audited)

 

Note

£

£

£

ASSETS 

 

 

 

 

Non-current assets

 

 

 

 

Property, plant and equipment

 

7,457,374

7,155,002

7,251,602

Other financial assets

 

564,194

4,000

656,004

Deferred tax asset

 

95,447

65,169

95,447

 

 

8,117,015

7,224,171

8,003,053

Current assets

 

 

 

 

Inventories

 

2,111,194

1,369,819

1,902,171

Trade and other receivables

 

2,861,845

1,603,392

2,490,217

Other financial assets

 

237,994

-

382,808

Cash and cash equivalents

 

5,565,501

5,335,601

5,125,808

 

 

10,776,534

8,308,812

9,901,060

 

 

 

 

 

TOTAL ASSETS

 

18,893,549

15,532,983

17,904,113

 

 

 

 

 

EQUITY AND LIABILITIES

 

 

 

 

Share capital and reserves

 

 

 

 

Issued share capital 

4

400,000

400,000

400,000

Capital redemption reserve

 

40

40

40

Revaluation reserve

 

1,609,592

1,589,422

1,609,592

Share option reserve

 

488,596

342,996

488,596

Retained earnings

 

10,145,461

7,396,231

8,643,415

TOTAL EQUITY

 

12,643,689

9,728,689

11,141,643

 

 

 

 

 

Current liabilities

 

 

 

 

Trade and other payables

 

3,313,081

3,423,785

3,353,749

Short-term borrowings

 

167,754

167,754

167,754

Current tax payable

 

740,415

309,081

903,469

Provisions

 

243,100

-

486,319

 

 

4,464,350

3,900,620

4,911,291

Non-current liabilities

 

 

 

 

Borrowings

 

1,252,336

1,371,179

1,318,005

Deferred tax liabilities

 

533,174

532,495

533,174

 

 

1,785,510

1,903,674

1,851,179

 

 

 

 

 

TOTAL LIABILITES

 

6,249,860

5,804,294

6,762,470

 

 

 

 

 

TOTAL EQUITY & LIABILITIES

 

18,893,549

15,532,983

17,904,113

 

 

 

 

 

 

The notes on pages 11-13 form part of these interim financial statements.

 

CAKE BOX HOLDINGS PLC

UNAUDITED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2021

 

 

 

Share capital

 

Capital redemption reserve

Share option reserve

Revaluation reserve

Retained earnings

Total

 

£

£

£

£

£

£

Balanceat1 April2020

400,000

40

198,368

1,589,422

7,296,507

9,484,337

Totalcomprehensive income

-

-

-

-

1,379,724

1,379,724

Share based payments

-

-

144,628

-

-

 144,628

Dividends paid

-

-

-

-

(1,280,000)

(1,280,000)

Balanceat30 September2020

400,000

40

342,996

1,589,422

7,396,231

9,728,689

Totalcomprehensive income

-

-

-

-

1,987,184

1,987,184

Share based payments

-

-

143,372

-

-

143,372

Deferred tax on share-based payments

-

-

2,228

-

-

2,228

Revaluation of freehold property

-

-

-

24,901

-

24,901

Deferred tax on revaluation of freehold properties

-

-

-

(4,731)

-

(4,731)

Dividends paid

-

-

-

-

(740,000)

(740,000)

Balanceat31March2021

400,000

40

488,596

1,609,592

8,643,415

11,141,643

Totalcomprehensive income

-

-

-

-

2,982,046

2,982,046

Dividends paid

-

-

-

-

(1,480,000)

(1,480,000)

Balanceat30 September2021

400,000

40

488,596

1,609,592

10,145,461

12,643,689

 

 

CAKE BOX HOLDINGS PLC

UNAUDITED CONSOLIDATED CASH FLOW STATEMENT

FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2021

 

 

6 months to

30 September 2021

(unaudited)

6 months to

30 September 2020

(unaudited)

12 months to

31 March 2021

(audited)

 

 

£

£

£

Cash from operating activities:

 

 

 

 

Profit before income tax

 

3,699,379

1,665,226

4,209,270

Adjusted for:

 

 

 

 

Depreciation

 

425,833

292,529

670,333

Exceptional items

 

-

-

486,319

Profit on disposal of tangible fixed assets

 

(13,515)

(7,141)

(18,972)

(Increase)/Decrease in inventories

 

(209,023)

26,415

(505,936)

(Increase) in trade and other receivables

 

(371,630)

(144,160)

(1,172,047)

(Decrease)/Increase in trade and other payables

 

(283,886)

650,435

1,860,396

Share based payment charge

 

-

144,628

288,000

Finance income

 

(1,021)

(2,314)

(4,087)

Finance costs

 

20,223

21,815

41,386

Cash generated by operations

 

3,266,360

2,647,433

5,854,662

 

 

 

 

 

Taxation paid

 

(880,387)

(652,422)

(646,995)

  Net cash inflow from operating activities

 

 

2,385,973

 

1,995,011

 

5,207,667

 

 

 

 

 

Cash flows from investing activities

 

 

 

 

Proceeds from sale of property, plant and equipment

 

16,375

9,848

26,446

Purchase of property, plant and equipment

 

(634,466)

(250,690)

(704,959)

Interest received

 

1,021

2,314

4,087

Issue of loans to franchisees

 

(41,000)

-

(1,016,813)

Repayment of franchisee loans

 

277,626

-

123,063

  Net cash flows used in investing activities

 

 

(380,444)

 

(238,528)

 

(1,568,176_

 

 

 

 

 

Cash flows from financing activities:

 

 

 

 

 

 

 

 

 

Repayment of borrowings

 

(65,669)

(75,109)

(128,283)

Dividends paid

 

(1,480,000)

-

(2,020,000)

Interest paid

 

(20,223)

(21,815)

(41,586)

 

Net cash flows used in financing activities

 

 

(1,565,892)

 

(96,924)

 

(2,189,869)

 

Net increase in cash and cash equivalents

 

 

439,637

 

1,659,559

 

1,449,822

 

 

 

 

 

Cash and cash equivalents brought forward

 

5,125,864

3,676,042

3,676,042

 

Cash and cash equivalents carried forward

 

 

5,565,501

 

5,335,601

 

5,125,864

 

 

For the purposes of the cash flow statement, cash and cash equivalents comprise the following:

 

 

Cash at bank and in hand

5,565,501

5,335,601

5,125,864

 

 

 

 

 

CAKE BOX HOLDINGS PLC

NOTES TO THE INTERIM ACCOUNTS

FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2021

 

 

1.  Notes to the Interim Report

 

Basis of preparation

The consolidated half-yearly financial statements do not constitute statutory accounts within the meaning of Section 434 of the Companies Act 2006. The statutory accounts for the year ended 31 March 2021 have been filed with the Registrar of Companies at Companies House. The auditor's report on the statutory accounts for the year ended 31 March 2020 was unqualified, did not include any matters to which the auditor drew attention by way of emphasis and did not contain any statements under Section 498 (2) or (3) of the Companies Act 2006.

 

The published financial statements for the year ended 31 March 2021 were prepared in accordance with International Financial Reporting Standards as adopted for use in the EU ("IFRS").

 

The consolidated annual financial statements of Cake Box Holdings Plc for the year ended 31 March 2022 will be prepared in accordance with UK adopted IFRS. Accordingly, these interim financial statements have been prepared using accounting policies consistent with those which will be adopted by the Group in the financial statements for the year ended 31 March 2022 but do not contain all the information necessary for full compliance with UK adopted IFRS.

 

 

The consolidated half-yearly financial statements have been prepared under the going concern assumption and historical cost convention as modified by fair value for property, plant and equipment.

 

Basis of consolidation

The Group consolidated half-yearly financial statements consolidates the company and its subsidiaries. All intra-group transactions, balances, income and expenses are eliminated on consolidation.

 

 

2.  Segment reporting

Components reported to the chief operating decision maker, the board of directors, are not separately identifiable. The group makes varied sales to its customers, but none are a separately identifiable component. The following information is disclosed:

 

 

 

 

 

6 months to

30 September 2021

(unaudited)

6 months to

30 September

2020

(unaudited)

12 months to

31 March

2021

(audited)

 

 

£

£

£

Sale of goods

14,179,845

7,898,916

19,213,915

Sale of services

2,291,732

687,649

2,696,947

 

16,471,577

8,586,565

21,910,862

 

 

 

 

 

3.  Dividends

 

 

6 months to  30 September 2021

6 months to  30 September 2020

12 months to  31 March 

2021

 

(unaudited)

(unaudited)

  (audited)

 

£

£

£

Dividends paid

1,480,000

-

2,020,000

 

 

 

 

No interim dividend (H1 FY20 1.85 per share) was declared.

 

 

4.  Share Capital

 

 

6 months to  30 September 2021

6 months to  30 September 2020

12 months to  31 March

2021

 

(unaudited)

(unaudited)

(audited)

 

 

 

 

 

£

£

£

 

 

 

 

40,000,000 Ordinary shares of £0.01 each

400,000

400,000

400,000

 

On the 21 September 2021, the Group granted share options for 114,784 shares with an exercise price of £3.48 per share. The options' vesting conditions are based on financial performance over three years. An option pricing model was used to determine the value of these options at the reporting date.

 

E a rnings per share

 

The basic earnings per share is calculated by dividing the earnings attributable to equity shareholders by the weighted average number of shares in issue. In calculating the diluted earnings per share, share options outstanding have been taken into account where the impact of these is dilutive.

 

 

6 months to  30 September 2021

6 months to  30 September 2020

12 months to  31 March

2021

 

(unaudited)

(unaudited)

(audited)

 

£

£

£

 

 

 

 

Basic earnings per share

7.46p

3.45p

8.42p

Diluted earnings per share

7.46p

3.45p

8.42p

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [email protected] or visit www.rns.com.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.
 
END
 
 
IR FFFIILALDIIL

a d v e r t i s e m e n t