In its results for the year ended 31 March 2021, Cake Box Holdings (CBOX ) has hailed another period of strong growth which it said has, in turn, created “a bigger, better business.” As a result, and in line with its dividend policy, the Board declared a dividend of 3.7p for FY21. 

The cake manufacturer hailed what it described as ‘another period of strong growth in an unprecedented year’ after revenue improved by 16.9% to £21.9m (2020: £18.7m) while the Group saw a 24.8% increase in adjusted profit before tax to £4.7m from £3.8m in FY20. 

The Company’s gross margin saw a marginal improvement to 49.7% (FY20: 46.7%) while cash from operations increased to £5.2m from £3.4m in FY20. Cake Box said it finished the period with a strong balance sheet, reporting £5.1m in cash at period end (FY20: £3.7m). 

In line with its ‘progressive’ dividend policy, the Board declared a dividend of 3.7p for FY21. 

Cake Box saw online sales soar 84% for the comparable period following the launch of its own delivery platform to complement third party delivery and click and collect offerings. 

Over the year, the Group added 24 new franchise stores, up from 20 in 2020, while as at period-end, 157 franchise stores were in operation compared to 133 in the 2020 period. 

Cake Box highlighted that these new store openings have allowed the business to create more than 200 new roles, including 25 at its new and existing warehouse and bakery sites.  

“Looking back to what we’ve achieved over the last twelve months, I am both incredibly proud of the Cake Box Family and optimistic for the future. We have achieved record results during a year which included a global pandemic and the temporary closure of our entire store estate. We have ultimately emerged a bigger, better business,” said CEO, Sukh Chamdal. 

Cake Box reinstated its interim dividend in November and declared a special dividend in September 2020. It said its decision reflected the Board's confidence in the strength of the balance sheet and was taken only after it had repaid all government monies received for the furloughing of Group level employees who were unable to work during COVID-19, it noted. 

The Company said it has reinforced the foundations for its future growth by opening new Coventry and Bradford production facilities and implementing several strategic initiatives. 

Looking ahead, the Company said it has a record number of holding deposits for new franchise stores wanting to start and grow their own businesses. It said this underpins iits confidence in meeting its ongoing target of 18-24 franchise store openings for FY22. 

Following a successful trial of five supermarket kiosk locations, Cake Box has opened a further supermarket kiosk post period end with a further six new locations confirmed. 

Addressing shareholders, Chamdal said, “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. 

In June 2020, amidst the onset of the pandemic, I wrote that “there will still be birthdays, marriages and numerous other occasions, large and small, to celebrate up and down the country and our performance this year has clearly shown this to be the case as we cautiously emerge from the pandemic, I am thrilled that more customers than ever will be celebrating reunions with friends, family and colleagues over a slice of our delicious, egg-free cake.”   

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Today, Cake Box has delivered on its promise to report a set of “record results” for the full year period ended 31 March 2021 in spite of the UK Government's lockdown restrictions. 

Back in April 2021, the Company informed investors that it had witnessed ‘a sustained recovery’ in trading since shops reopened after the first UK lockdown in May last year. 

To investors today, the Group said it has ‘not only continued to grow the business over the last twelve months,’ but it has also ‘reinforced the foundations for its future growth.’ 

Shares in Cake Box Holdings have risen by over 50% in value since the beginning of 2021.  

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