London-listed egg-free baker Cake Box set out plans to double its number of shops to 400, despite profit falling amid a “unique set of macro-economic pressures” last year.
For the year to 31 March, sales rose slightly to £34.8 million, but amid high inflation - especially for food items - pre-tax profit fell by 28.6% to £5.4 million. Despite the decline, the business still upped its dividend to 5.5p per share.
CEO Sukh Chamdal noted that the group was approaching the target it had set of 250 shops. As a result, it set a new target of 400.
“We have continued with our steady store opening program to add to the 205 Cake Box shops we had at year end. As we approach the 250 target number of stores we set ourselves at our IPO almost 5 years ago to the day, we continue to look to stretch ourselves with a new target of 400 and new ways to provide the UK consumer with our unique egg-free fresh cream cakes.”
He added that the group hoped to reach more customers through an improved website.
"During the year we have continued to innovate to meet the needs of our customers, worked on improving our operational infrastructure despite facing a unique set of macro-economic pressures and continued to grow sales and margins,” he said. “We are looking at new ways to reach our customers and the new website offers many new marketing opportunities.
“The market outlook is improving, our capabilities have been expanded, and the Cake Box brand is stronger than ever. We have the right platform in place for the Group’s development to accelerate over the coming year and beyond."
