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- Franchise cake retailer Cake Box’s share jumped almost 4 per cent on Monday after reporting strong H1 2022 results.
- Its H1 2022 pre-tax profit increased by 122.2 per cent to £3.70 million, from £1.66 million in H1 2021.
- The company plans to open 32 new franchise stores in FY 2022, after receiving a record number of deposits from potential franchisees, and opening new stores
Franchise cake retail company Cake Box Holdings PLC’s (LON: CBOX) shares jumped almost 4 per cent on Monday’s trading session after the group reported strong H1 2022 results.
Cake Box’s shares were trading at GBX 394.00, up by 3.68 per cent on 8 November at 12:52 AM BST. Meanwhile, the FTSE AIM All-Share index, which it is a part of, was at 1,236.98, down by 0.02 per cent.
(Image source: Refinitiv)
Cake Box’s market cap stands at £152.00 million, and it has a one-year return of 129.22 per cent as of 8 November, while its year-to-date return is at 80.02 per cent as of Monday.
Cake Box’s robust H1 2022 performance
The group reported its revenue surged by 91.8 per cent to £16.47 million in H1 2022, up from £8.59 million in H1 2021.
Its H1 2022 gross profit rose by 83.1 per cent to £7.61 million, from £4.16 million in H1 2021. And its pre-tax profit surged by 122.2 per cent to £3.70 million from £1.66 million in the year before.
It also declared an H1 2022 interim dividend of 2.50 pence per share, which was up by 35.1 per cent compared to 1.85 pence per share in H1 FY21.
The robust results have been due to the company’s sales increase following the easing of restrictions earlier this year.
Future target and outlook
The company said it had several months of cake ingredients and would not see any disruptions in the Christmas period.
The group also plans to open 32 new franchise stores in FY 2022, following the record number of deposits from potential franchisees for the group.
The company currently has 174 operational franchise stores as of 30 September, compared to 139 in the year before.
Its franchise stores’ like-for-like sales growth was at 13.3 per cent in H1 2022, compared to 12.1 per cent in H1 2021. The group also stated it expects to meet its FY 2022 goals.