Patisserie Holdings’ share price rises after unveiling sweet profits and revenues
Patisserie Valerie owner Patisserie Holdings saw its share price soar by 4.4 per cent this morning after its half-year results revealed bumper revenues and profits.
The Aim-listed company, which also owns the cafe chain Baker & Spice, reported a 14.4 per cent rise in revenue to £50m for the six months ended 31 March 2016, while pre-tax profit rose 20.6 per cent to £8.4m.
It also announced that it would be issuing its first interim dividend to shareholders, of 1p per share.
“The group has continued to deliver strong growth in sales and profit in what is a competitive trading environment,” said executive chairman Luke Johnson.
“We opened 12 new stores in the period all of which are performing well. Our pipeline for new stores is well developed and I look forward to another period of strong growth in the second half of the year.”
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City analysts were also happy with the results. Canaccord Genuity today increased its target price on the stock to 380p and raised its recommendation to “buy”.
“Patisserie Holdings' interim earnings per share was marginally ahead of our forecasts, the new store opening programme is on track and the pipeline is in great shape,” said the research.
“The ongoing build up of cash on the balance sheet leaves Patisserie increasingly well placed to step up the rate of new store openings or make bolt-on acquisitions should the right opportunities present themselves.”
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FinnCap analysts said that the company had a “unique proposition” of “well positioned, vertically integrated brands that straddle two growth markets and have plenty of runway for growth”.
Shares settled by late morning and were trading 3.6 per cent higher at 350p.