Cake Box has enjoyed a boost to its share prices after revealing skyrocketing sales in its first financial update since going public.
In the six months to September 30 the egg-free desserts specialist reported a 44 per cent jump in revenues, while like-for-like sales increased 4.4 per cent.
Though its pre-tax profits dropped seven per cent to £1.37 million over the same period, this was dragged down by the cost of its initial public offering (IPO), which took place in June.
Excluding the £599,000 cost of going public, which was reported earlier this year to have lined its founders’ pockets with more than £17 million, profits grew 34 per cent during the period.
This growth was attributed to its rapid store expansion, with the young retailer now trading from over 100 stores across the UK while another 15 are planned before the end of the year.
“The Cake Box brand has continued to go from strength to strength and we have made good progress since flotation with our strategic priorities of growing our store estate, investing further in our new products and developing our digital marketing,” chief executive Sukh Chamdal said.
Analysts at Shore Capital Markets said the results were “good enough to eat” and predicted a strong second half, with Christmas and New Year still to come.
The company was launched in 2008 and has since enjoyed a wildly successful franchise programme, which sees average franchise stores turn over around £100,000 every year.
Shares in the company were 3.9% higher in early trading on Monday.
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