Cake Box emerges from pandemic ‘bigger and better’ as profits lift

The boss of Cake Box has said the retailer has emerged from the pandemic as a “bigger, better business” as it posted higher profits for the past year.

The cream cake chain told investors on Wednesday that pre-tax profits jumped by 11.8% to £4.2 million for the year to March 31 despite the impact of the pandemic.

It was boosted by higher sales over the year as it stores remained trading for most of the year and the group opened 24 new franchise stores.

Group revenues lifted by 16.9% to £21.9 million for the year.

Sukh Chamdal, chief executive officer of Cake Box, said the London-listed business is in a strong position to continue its growth plans.

“We have achieved record results during a year which included a global pandemic and the temporary closure of our entire store estate,” he said.

“We have ultimately emerged a bigger, better business.

“Despite continued uncertainty in the operating environment, our unique proposition for customers and new and existing franchisees remains highly attractive and we are confident of making continued progress in the years ahead.”

The retailer said trading has been “strong” so far in the first quarter of the new financial year, with nine franchise store openings.

Cake Box told shareholders it is targeting between 18 and 24 new openings over the current financial year as it continues its nationwide expansion.

Mr Chamdal added: “We have a record number of holding deposits for new franchise stores wanting to start and grow their own businesses.”

The chain said it will also expand its kiosk business after a successful trial in supermarkets, with plans for six more sites.

Shares in Cake Box were 3.7% higher at 335p during early trading.