Business
AGM Statement and Board Update
AGM Statement and Board Update.
About this update from Cake Box Holdings Plc
[{"type":"text","content":"\n\n22 August 2023\n \nCake Box Holdings plc\n(\"Cake Box\" or the \"Company\" or the \"Group\")\n \nAGM Statement and Board Update\nNotice of Capital Markets Event\n \nCake Box Holdings plc, the specialist retailer of fresh cream cakes, announces a trading update ahead of the Company's annual general meeting, being held at 11.00 am today.\n \nTrading update\n \nThe Group is pleased to provide an update for the 17 week trading period to 30 July 2023. The positive trading momentum from the second half of the previous year has continued, with franchisee store like-for-like sales increasing 6.8% for the first 17 weeks of the new financial year (ending 31 March 2024 (FY24)). This is an increase from 5.4% like-for-like sales growth for the first 11 weeks of the new financial year reported at the Group's FY23 results on 26 June 2023.\n \nThe Group has continued to maintain tight cost control and taken proactive action to minimise the inflationary impacts on its input and administrative costs. There have been some improvements in input costs to the Group, with fresh cream prices decreasing in the first quarter of the year. Cake Box remains mindful of significant inflationary pressures that still exist on its franchisees and customers across the country and therefore has passed on part of this cost reduction to franchisees to help strengthen their margins.\n \nThe Group continues to have a strong balance sheet and had cash as at close of business on 30 July 2023 of £7.9m, prior to paying the proposed final dividend for FY23 of 5.5 pence per share, amounting to an upcoming cash outflow of £2.2m on 29 August 2023.\n \nStrategy in action\n \nAs announced at the time of our FY23 results, the Group has increased its investment in marketing in-line with its stated plan. The strengthened marketing team has focused on growing Cake Box's brand awareness and expand its digital and e-commerce capabilities. The Company's new website went live during June 2023, and it is concentrating on leveraging this and the sales benefits that this new platform provides to its franchisees. The feedback has been positive and there have been encouraging early results. \n \nCake Box continues to increase its geographic presence, opening a further seven new franchise stores since the beginning of the new financi...