15th Jul 2025 11:52
(Alliance News) - Cake Box Holdings PLC on Tuesday reported a slight decline in profit during its most recent financial year despite a rise in revenue, as increased expenses and exceptional items charges hurt its bottom line.
The Enfield, Middlesex-based retailer of fresh cream celebration cakes said pretax profit was GBP6.2 million in the year that ended March 30, slipping 1.6% from GBP6.3 million the year prior.
This was despite revenue growing 13% to GBP42.8 million from GBP37.8 million, as administrative expenses before exceptional items increased 8.6% to GBP15.1 million from GBP13.9 million.
Cake Box also took an exceptional items charge of GBP919,722 in the recent year, swung from a gain of GBP243,000 on this line a year earlier.
Underlying earnings before interest, tax, depreciation and amortisation rose 17% to GBP8.7 million from GBP7.5 million. Gross margin edged down to 52.5% from 52.7% amid some input cost increases.
"In the past year, we achieved significant operational growth and are pleased to report growing sales and underlying Ebitda ahead of market expectations. This success was due to strong franchise store performance, expansion of our store network, and the effectiveness of our multi-channel sales strategy. Notably, we celebrated the opening of our 250th store in Hastings, progressing toward our target of 400 locations," said Chief Executive Officer Sukh Chamdal.
"Our strategic acquisition of Ambala Foods in March 2025 enhances our product portfolio and diversifies revenue streams, focusing on celebratory and indulgent treats. Ambala's rich heritage and popular products align seamlessly with our brand, creating opportunities for synergies, accelerated organic growth in new regions and reaching new customers."
Cake Box agreed to buy sweets maker Ambala Foods Ltd for GBP22 million.
Shares in Cake Box were up 8.3% at 195.00 pence in London on Tuesday morning.
Cake Box declared a final dividend of 6.8 pence per share, up 12% from 6.1p a year before. This brought the total dividend for the year to 10.2p per share, up 13% from 9.0p.
CEO Chamdal continued: "Looking ahead, we have entered the new financial year with positive trading momentum and are making good progress in integrating Ambala. We remain dedicated to growth, innovation, and solidifying our position as the UK's leading retailer of fresh cream celebration cakes."
By Emily Parsons, Alliance News reporter
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