Cake Box boosts profits with help from new stores
Cake shop operator Cake Box says its full-year pre-tax profits are up 15.1 percent to £6.3million, thanks to a combination of new stores, higher sales and cost savings.
Cake shop operator Cake Box says its full-year pre-tax profits are up 15.1 percent to £6.3million, thanks to a combination of new stores, higher sales and cost savings.
It said that for the 12 months to the end of March, its revenues rose 8.7 percent to £37.8million, thanks to the opening of 20 franchise stores in new areas such as Liverpool and Manchester, taking its total number of outlets to 225.
At the same time, its online sales rose 16.1 percent to £16.1million.
Cake Box said the increase in its sales was down to new product launches, new store openings, increased marketing and efficiency savings.
These factors helped boost its profits, allowing it to hike its final dividend by 10.9 percent to 6.1p per share.
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Chief executive Sukh Chamdal said that although the macroeconomic economic outlook was uncertain, it expects new store openings, alongside a revamped website and marketing strategy, to further boost its sales.
He added: “We look forward to building on this momentum, continuing to expand our store estate, and further solidifying Cake Box as the go-to destination for fresh cream celebration cakes.”
Cake Box wants to have 400 stores around the country and says that of its 95 franchisees, more than half operate one or more store. It specialises in egg-free cakes.