Cake Box makes sustained recovery
Cake Box, the specialist retailer of fresh cream cakes, has said it has made a sustained recovery since the height of the coronavirus pandemic when its stores were closed for six weeks.
In the six months to 30 September, EBITDA edged up 0.5% to £1.98 million, although pre-tax profit fell by 4% to £1.66 million.
Meanwhile, the company’s online sales increased by 51% as trade was boosted by the launch of new home delivery services with Uber Eats, Just Eat and Deliveroo.
Sukh Chamdal, Cake Box chief executive, said: “We have shown considerable resilience during an unprecedented half year period and have emerged a stronger business for it. This is demonstrated by the strength of our trading momentum since reopening the business, with our franchisee like-for-like sales up by 12.1%, including a 51% increase in online franchisee sales, six new franchise stores opened and a record number of new store applications. This gives us confidence that the momentum in our national rollout will return to pre-Covid levels.”
At the end of the period, Cake Box had 139 franchise stores in operation and has launched five new stores since the period end.
Cake Box said trading during the first six weeks of its second half has been encouraging and that like-for-like sales in franchise stores in October rose by 12.7%. Despite the impact of the second lockdown on footfall, like-for-like sales increased by 2% in the first two weeks of November.
Chamdal added: “This has all been the result of a monumental effort from our franchisees, who have continued to focus on giving customers the very best service, and a delicious product, in difficult times. With a strong balance sheet and unique proposition, we remain confident of making continued progress in the second half.”
