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Cake Box sees sales jump after reopening stores

Three new franchisees are expected to start trading “imminently”

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 £8mln 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 £8mln 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 £5mln 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--