Cake Box leaves a sweet taste in wake of upbeat projection
Cake Box's shares climbed today after the firm posted an upbeat outlook on its sales and profits.
Shares in the cream cake specialist jumped more than eight per cent in morning trading, amid the news that it was expecting profits for the full year to be ahead of current market forecasts.
The retailer is projecting revenue to jump 40 per cent to £8.3m in its first-half performance, which the firm will reveal late next month.
While its rival Patisserie Valerie has been grabbing the headlines for financial woes in the last week, Cake Box remains confident of its own future, having opened a record number of of new stores in the six months to the end of September.
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With 102 outlets now in its portfolio, the firm has enjoyed a swift rise to prominence, having floated at 108p per share in June and now selling at 172p.
Cake Box boss Sukh Chamdal said: “We have delivered a strong trading performance for the period, during which we successfully completed our IPO in June. We continue to build momentum with a record number of new franchise store openings, and an increase in the average sales per store.
Chamdal added: “We look forward to the second half of the financial year with confidence, with a strong pipeline of new franchise stores putting us on track to match the number of stores opened during the first half.”