Final Results

About this update from Cake Box Holdings Plc

[{"type":"text","content":"\n \n 15 July 2025 \n   \n Cake Box Holdings plc \n   \n (\"Cake Box\" the \"Company\" or the \"Group\") \n   \n Audited Full Year Results for the 52 weeks ended 30 March 2025 \n   \n Increases in revenue and underlying EBITDA ahead of expectations as Cake Box continues to expand its store estate which now surpasses 250 stores \n   \n Cake Box Holdings plc, the UK's largest retailer of fresh cream celebration cakes, announces its audited full year results for the 52 weeks ended 30 March 2025. \n   \n Financial Highlights \n   \n \n \n \n \n \n \n \n 52 weeks ended \n 30 March 2025 \n \n \n   \n   \n 2024 \n \n \n   \n   \n Change*** \n \n \n \n \n Group revenue \n \n \n £42.78m \n \n \n £37.84m \n \n \n 13.0% \n \n \n \n \n Gross profit \n \n \n £22.46m \n \n \n £19.94m \n \n \n 12.6% \n \n \n \n \n EBITDA* \n \n \n £7.81m \n \n \n £7.70m \n \n \n 1.5% \n \n \n \n \n Underlying EBITDA** \n \n \n £8.73m \n \n \n £7.46m \n \n \n 17.1% \n \n \n \n \n Profit before tax \n \n \n £6.16m \n \n \n £6.27m \n \n \n (1.8%) \n \n \n \n \n Underlying profit before tax** \n \n \n £7.08m \n \n \n £6.03m \n \n \n 17.4% \n \n \n \n \n Underlying b asic earnings per share \n \n \n 13.18p \n \n \n 11.04p \n \n \n 19.4% \n \n \n \n \n Final dividend recommended \n \n \n 6.80p \n \n \n 6.10p \n \n \n 11.5% \n \n \n \n \n * EBITDA is calculated as operating profit before depreciation and amortisation \n ** Underlying EBITDA and pre-and post-tax profits are after adjusting for exceptional items \n *** % change is based on amounts in the Consolidated Statement of Comprehensive Income \n \n \n \n \n   \n ·    Gross margin decreased marginally to 52.5% (2024: 52.7%), as the Group absorbed certain input price increases through the financial period \n ·    Underlying EBITDA** increased 17.1% to £8.73m (2024: £7.46m) \n ·    Group's net debt position was £9.0m (2024: net cash of £7.3m) following £22m acquisition of Ambala Foods Limited (\"Ambala\") \n ·    Full year dividend per share increased 13.3% to 10.2p (2024: 9.0p) \n   \n Operational Highlights \n ·    Successful acquisition of Ambala, a leading manufacturer and retailer of Asian sweets (Mithai) in the UK since 1965, currently operating 19 corporate stores and three franchised stores, for a total consideration of £22m \n ·    Total number of Cake Box franchise stores across the UK increased to 251 ( 2024 : 225) , entering new locations such as Belfast, Hastings and Worthing \n ·    19.0% growth in online sales to £19.1m ( 2024 : £16.1m) following increased investment in digital marketing and e-commerce capabilities \n ·    Launched a number of new products to capture latest trends, including an exclusive partnership with Ferrero UK to launch a Nutella range, and the popular Dubai Chocolate range, with lines specifically for Valentine's Day, Mother's Day and Eid \n ·    The Board has been strengthened by the appointments of Malar Velaigam, Catherine Nunn, and Andrew Boteler, all joining as Non-Executive Directors \n   \n Franchisee Highlights \n ·    Franchisee total turnover increased 9.5% to £86.3m ( 2024 : £78.8m) \n ·    Like-for-like 1 sales growth of 3.0% in franchise stores ( 2024 : 4.4%) \n ·    Number of multi-site franchisees increased to 54 ( 2024 : 47) \n   \n Current Trading and Outlook \n ·    Trading in the 2026 financial year has started positively and in line with market expectations, supported by continued momentum in franchise store performance and growing online sales \n ·    The integration of the Ambala acquisition is progressing well and on track to achieve identified cost savings and efficiencies \n ·    Whilst it remains a challenging consumer environment, the Group is well positioned for continued growth, with an expanding store estate, growing customer loyalty and increasing online sales \n   \n 1 Like-for-like: Stores trading for at least one full financial year prior to 30 March 2025. \n   \n Sukh Chamdal, Chief Executive Officer, said: \" 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. \n   \n \"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. \n   \n \"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.\" \n   \n For further information, please contact: \n   \n \n \n \n \n Cake Box Holdings plc \n Sukh Chamdal, CEO \n Michael Botha, CFO \n   \n \n \n c/o +44 (0) 20 4582 3500 \n \n \n \n \n Shore Capital \n Stephane Auton \n Patrick Castle \n George Payne \n Fiona Conroy - Corporate Broking \n \n \n +44 (0) 20 7408 4050 \n \n \n \n \n \n \n \n \n \n \n \n \n Gracechurch Group \n Harry Chathli \n Alexis Gore \n Rebecca Scott \n   \n \n \n +44 (0) 20 4582 3500 \n [email protected] \n \n \n \n \n \n \n   \n   \n Operational Review \n   \n It has been another excellent year of strong growth for Cake Box with increases in revenue and underlying EBITDA ahead of expectations. The strategic initiatives implemented by management, including an expanding store estate, revamped e-commerce platform, and successful brand refresh, alongside the acquisition of Ambala, provides an excellent platform for further growth. \n   \n These initiatives have collectively strengthened the Group's operational platform and extended Cake Box's market presence. The combination of the enhanced online performance and growing high street presence positions Cake Box for sustained growth. \n   \n Delivering on the Group's Growth Ambitions \n   \n Expanding store estate \n   \n The Group's success is driven by its franchisees. Cake Box opened 26 new stores during 2025, exceeding managements target at the start of the year, taking the total to 251 Cake Box stores as of 30 March 2025.  The Group saw a 9.5% increase in total franchise store sales and like-for-like sales increase of 3.0%, reflecting successful store openings and strong customer demand. \n   \n In addition, 19 corporate and three franchised Ambala stores were added to the store estate following the acquisition in March 2025. As part of the Group's expanding footprint, Cake Box reached new regions including Northern Ireland, and in the first half of the 2026 financial year, the Group opened its first international store in Paris. \n   \n Cake Box is focused on growing its store estate, with a target to reach 400 locations and there remains strong demand for new stores both within the franchisee base and from new potential franchisees. As of 30 March 2025, Cake Box has 109 franchisees of which 54 operate more than one Cake Box store.   \n   \n The Group continued to work closely with external property consultants to identify and secure high-potential locations, which led to the successful identification of additional areas suitable for either new Cake Box stores or to strengthen the Group's presence in existing regions. Encouraging progress continues as the Group builds towards its long-term expansion goals. \n   \n The positive downward trends for utility costs combined with the stabilisation of food costs has had a positive impact of franchisee margins and profitability. \n   \n Marketing and multi-channel approach driving growth \n   \n The Group's enhanced marketing strategy continues to deliver strong results, further increasing brand awareness, driving customer acquisition and loyalty. Investment in digital marketing and e-commerce capabilities remains central to the Group's growth strategy, with online sales increasing by 19.0% year-on-year, and online transactions now accounting for 23.5% of franchise store sales for the 52 weeks ended 30 March 2025, with some weeks exceeding 25.0% of franchise sales. \n   \n The launch of a customer loyalty programme, Cake Club, in June 2024 has been well received, and has reached the landmark of surpassing 100,000 members. In addition, there has been a significant uplift in the marketing database, a 100% increase to 768k subscribers and SMS database growth of 78% to 348k. These developments allow for more personalised and impactful customer engagement. \n   \n Website performance has remained strong, with total visits reaching five million in 2025, a 39.4% increase year-on-year, with over 250,000 new online customers. \n   \n The increasing online sales also reflect Cake Box's online 'click-and-collect' feature, which allows customers to order personalised, fresh cream cakes for collection within the hour, and continues to grow in popularity. \n   \n The annual central marketing fund with the franchisees is designed to increase digital and social media reach, grow the brand and attract new customers. All the new stores opened during the financial year have the new refreshed branding and 78 of the total estate now carry the new look, which continues to be rolled out across the business. \n   \n Strategic acquisition of Ambala to expand product range and market reach \n   \n In March 2025, Cake Box completed the acquisition of Ambala, a well-established manufacturer and retailer of traditional Asian sweets and snacks, for a total of £22.0m, which included £16.0m for Ambala and £6.0m for Ambala's industrial freehold building located in Welwyn Garden City. Ambala broadens the Group's product portfolio and diversifies its revenue streams while remaining aligned with Cake Box's core focus on celebratory and indulgent treats. \n   \n The Board has identified cost savings and efficiency benefits of at least £1m in both the near and medium term. These benefits are expected to be delivered over the next 18 to 24 months, through a number of efficiency initiatives. \n   \n Operational efficiencies will be achieved through greater automation and improved utilisation at Ambala's manufacturing facility, reducing production costs and enhanced productivity. The Group is also streamlining head office functions by merging certain Group functions to reduce overhead costs and enhance administrative efficiency. \n   \n Further savings are expected from economies of scale as consolidation of the supply chain enables better pricing on materials and packaging. By leveraging Cake Box's scale and supplier relationships, the Group aims to significantly reduce input costs. In addition, integrating Ambala's logistics into Cake Box's existing delivery network will unlock routing efficiencies and reduce transportation costs. \n   \n These operational synergies form part of a comprehensive integration plan. This plan is progressing well, with initial focus on aligning systems and leveraging the significant operational efficiencies and cost savings while enhancing the Group's opportunities to accelerate revenue growth. \n   \n The acquisition was supported by a successful £7.2m equity fundraise, underlining strong shareholder support for the Group's growth strategy with both the institutional placing and retail offer substantially oversubscribed. \n   \n Continuing to invest in growth  \n   \n In the first half, Cake Box completed the purchase of land adjacent to its Bradford depot for £0.7m. This is to support new store growth in the north of England and Scotland. Cake Box also improved its IT and e-commerce capabilities to capitalise on its significant growth opportunities, with a total capex spend of £1.0m, and a further £1.0m was spent on depots during the period. \n   \n Board changes \n   \n During the period, Cake Box was pleased to welcome several highly capable individuals to the Board. Malar Velaigam joined as a Non-Executive Director and Chair of the Remuneration Committee, Catherine Nunn as a Non-Executive Director and Chair of the ESG Committee, and Andrew Boteler as a Non-Executive Director and Chair of the Audit Committee. \n   \n These appointments reflect the Group's continued commitment to strong governance and experienced leadership, aligned with Cake Box's long-term strategic objectives. Each brings valuable expertise and perspective that will be instrumental as the Group enters its next phase of growth. \n   \n   \n   \n   \n   \n   \n Financial review \n   \n \n \n \n \n \n \n \n 52 weeks ended 30 March 2025* \n \n \n 2024 \n \n \n Change*** \n \n \n \n \n \n \n \n £m \n \n \n £m \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Group Revenue \n \n \n 42.78 \n \n \n 37.84 \n \n \n 13.0% \n \n \n \n \n Gross Profit \n \n \n 22.46 \n \n \n 19.94 \n \n \n 12.6% \n \n \n \n \n Operating expenses before exceptional items \n \n \n  (15.10) \n \n \n  (13.76) \n \n \n (9.7%) \n \n \n \n \n Exceptional items \n \n \n  (0.92) \n \n \n 0.24 \n \n \n \n \n \n \n \n Operating profit \n \n \n 6.44 \n \n \n 6.42 \n \n \n 0.2% \n \n \n \n \n Net finance cost \n \n \n  (0.28) \n \n \n  (0.15) \n \n \n (80.2%) \n \n \n \n \n Profit before tax \n \n \n 6.16 \n \n \n 6.27 \n \n \n (1.8%) \n \n \n \n \n Underlying profit before tax** \n \n \n 7.08 \n \n \n 6.03 \n \n \n 17.4% \n \n \n \n \n Taxation \n \n \n  (1.78) \n \n \n  (1.61) \n \n \n (10.8%) \n \n \n \n \n Profit for the period \n \n \n 4.38 \n \n \n 4.66 \n \n \n (6.1%) \n \n \n \n \n Underlying profit for the period** \n \n \n 5.30 \n \n \n 4.42 \n \n \n 19.8% \n \n \n \n \n Revaluation of freehold property \n \n \n 0.15 \n \n \n 0.22 \n \n \n \n \n \n \n \n Deferred taxation on revaluation \n \n \n  (0.04) \n \n \n  (0.06) \n \n \n \n \n \n \n \n Total comprehensive income for the year \n \n \n 4.49 \n \n \n 4.82 \n \n \n (6.9%) \n \n \n \n \n \n \n \n \n \n \n   \n \n \n \n \n \n \n \n EBITDA \n \n \n 7.81 \n \n \n 7.70 \n \n \n 1.5% \n \n \n \n \n Underlying EBITDA** \n \n \n 8.73 \n \n \n 7.46 \n \n \n 17.1% \n \n \n \n \n * EBITDA is calculated as operating profit before depreciation and amortisation \n \n \n   \n \n \n \n \n \n \n \n ** Underlying EBITDA and pre-and post-tax profits are after adjusting for exceptional items \n \n \n   \n \n \n \n \n \n \n \n *** % change is based on amounts in the Consolidated Statement of Comprehensive Income \n \n \n \n \n \n \n \n   \n Acquisition of Ambala Foods Limited \n   \n The Group completed the acquisition of Ambala on 21 March 2025. Ambala has been a leading manufacturer and retailer of Asian sweets, also known as Mithai, since 1965 in the UK, establishing itself as a prestigious, well-known brand within UK Asian communities. \n   \n Ambala provides significant growth opportunities, both through store estate, with Ambala currently operating 19 corporate stores, three franchised stores, and a diversified product range. The Group plans to expand the Ambala brand in the future through franchising.   \n   \n The acquisition comprised £16.0m for the business and £6.0m for the industrial freehold property of Ambala. The acquisition was funded through a new £15.2m term loan facility and £7.2m new equity raise. \n   \n Ambala's balance sheet as at 30 March 2025 is consolidated in the Group's Consolidated Statement of Financial Position for the 52 weeks ended 30 March 2025, as well as the trading from the date of acquisition, 21 March 2025, until the end of the financial period, 30 March 2025. \n   \n Cake Box Franchise Sales \n   \n A key metric for measuring the revenue performance of the Group is franchise sales. This is the sales of finished products to the customers of the franchisees. These sales are either generated instore or online through Cake Box's e-commerce platform. Total franchise sales increased by 9.5% to £86.3m (2024: £78.8m). The increase was a result of a 3.0% increase in franchise store like-for-like sales, additional sales from stores opened during 2024 and sales from the 26 new stores opened during 2025 (2024: 20). \n   \n Reported Group Revenue \n   \n Group revenue consists of products and ingredients sold to franchisees, revenue invoiced for new store builds, recharges to franchisees and sales of Asian confectionary and savoury products through the Ambala corporately owned stores. \n   \n Reported Group revenue (including Ambala) for the 52 weeks ended 30 March 2025 increased by 13.0% to £42.8m (2024: £37.8m). This was due to the increase in franchise store sales as well as the addition of 26 new franchise stores opening in the period. This positive outcome was achieved despite the continued challenging economic and consumer environment, with consumer's disposable income impacted by high interest rates, utility costs and inflation. Excluding the sales contribution from the Ambala stores of £0.8m, Group revenue increased by 10.8%. \n   \n Gross Profit \n   \n Gross profit as a percentage of Group revenue at 52.5%, 0.2% below 2024. Product margins, for food and non-food items sold to franchisees, marginally decreased to 53.2% (2024: 53.5%), as the Group absorbed certain input price increases through the financial period. Overall, raw material costs were stable during the year, as the Group benefitted from having multiple suppliers for its main ingredients, which enabled it to maintain competitive pricing amongst its suppliers. \n Maintaining its cost basis enabled the Group to minimise the increase in pricing to its franchisee partners, which in turn benefited the margins of the franchisees, as they were able to maximise price increases to customers. Pricing increases to customers were carefully reviewed to ensure Cake Box remained competitive in the continued challenging and tough economic climate throughout the year. The Group benefits through increased volumes from new customers drawn to the brand, which in turn increases the operational gearing of the depots. \n   \n Underlying EBITDA \n   \n Underlying EBITDA increased 17.1% to £8.7m (2024: £7.46m) as a result of the increased operational gearing of the Group during the period, as well as £0.1m EBITDA from Ambala for the period since completion of the acquisition. This was due to the increase in overheads for the Group of 9.7%, being well below the increase in Group revenues of 13.0% and gross profit of 12.6%. \n Overheads excluding Ambala were up 5.8%, compared to revenue up 10.8% (excluding Ambala). \n   \n Reported EBITDA was £7.8m compared to £7.7m for 2024. The difference between Reported and Underlying EBITDA is due to the exceptional items reported in both periods. The Group incurred £0.7m of one-off costs relating to the acquisition of Ambala in March 2025 and £0.2m impairment of historical website development costs, which have been classified as exceptional items. The exceptional item in 2024 related to the reversal of a £0.2m provision created in prior years for a website data breach. \n   \n \n \n \n \n \n \n \n   \n \n \n 52 weeks ended 30 March 2025 \n \n \n 2024 \n \n \n Change \n \n \n \n \n \n \n \n   \n \n \n £m \n \n \n £m \n \n \n   \n \n \n \n \n Reported operating profit \n \n \n \n \n \n 6.44 \n \n \n 6.42 \n \n \n 0.2% \n \n \n \n \n Depreciation & Amortisation \n \n \n \n \n \n 1.37 \n \n \n 1.28 \n \n \n \n \n \n \n \n Reported Group EBITDA \n \n \n \n \n \n 7.81 \n \n \n 7.70 \n \n \n 1.5% \n \n \n \n \n Exceptional items \n \n \n \n \n \n 0.92 \n \n \n  (0.24) \n \n \n \n \n \n \n \n Underlying Group EBITDA \n \n \n \n \n \n 8.73 \n \n \n 7.46 \n \n \n 17.1% \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Underlying Group EBITDA attributable to: \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Cake Box \n \n \n \n \n \n 8.64 \n \n \n 7.46 \n \n \n 15.8% \n \n \n \n \n Ambala Foods Limited \n \n \n \n \n \n 0.09 \n \n \n -   \n \n \n \n \n \n \n \n Underlying Group EBITDA \n \n \n \n \n \n 8.73 \n \n \n 7.46 \n \n \n 17.1% \n \n \n \n \n   \n   \n Although the Group only acquired Ambala on 21 March 2025, Ambala generated £0.1m of EBITDA for the short period from acquisition until the end of the financial period. This was due to Ramadan falling during March 2025, with Eid at the end of the financial period, on 30 March 2025. The celebration of Eid is one of the most profitable periods for Ambala. \n   \n Exceptional items \n   \n The exceptional item of £0.9m for the period, relates to £0.7m of professional fees, due diligence and other fees incurred in relation to the acquisition of Ambala, which completed on 21 March 2025 and £0.2m for the impairment of historical website costs. \n   \n The exceptional item for 2024 comprised solely of a £0.2m provision made in FY21 following a website data breach. During 2024, the Information Commissioner's Office (\"ICO\") informed the Group that it would not be pursuing any enforcement action relating to the case and considered the case closed. As a result, the Group released this provision in line with the treatment of the original provision. \n   \n Balance sheet \n   \n The Group's net assets have grown from £19.3m to £27.0m, mainly due to the impact of the acquisition of Ambala. Non-current assets have increased from £15.0m to £44.5m, due to the Goodwill of £13.8m from the acquisition, the £4.0m increase in the Right-of-Use assets from Ambala store leases and £6.3m purchase of the Ambala industrial freehold (including stamp duty). \n   \n The non-current liabilities have increased from £5.2m to £21.7m, as a result of the £15.2m new term loan to partly finance the purchase of Ambala and £4.0m lease liabilities in Ambala. \n   \n Cash balances of £6.3m at 30 March 2025 are £2.2m lower than prior period (31 March 2024: £8.5m). The Group's net debt of £9.0m (2024: net cash of £7.3m) at 30 March 2025, was 1.03x underlying EBITDA. \n   \n As the Group operates a franchise model, it has relatively low capital expenditure requirements and a flexible cost base. \n   \n The Board is confident that the Group's cash levels, and liquidity are sufficient for the operational requirements of the Group, despite the continued tough macroeconomic climate. \n   \n Property \n   \n At each year end, surveyors are instructed to value the Company's three freehold depots, Enfield, Bradford and Coventry, to ensure a consistent value base. The new valuation has resulted in a further uplift of £0.2m in the reported values of the three sites for the consolidated report and accounts. \n   \n In addition to a professional valuation at the financial period end, the industrial freehold for Ambala was valued as part of the acquisition due diligence as well as in conjunction with the term loan facility provided by banks. \n   \n Taxation \n   \n The effective rate of taxation was 28.9% (2024: 25.6%). The effective tax rate was higher than the statutory rate due to expenses not allowable for tax purposes and adjustments relating to prior periods. \n   \n Earnings per share (\"EPS\") \n   \n Reported basic and diluted earnings per share were 6.4% and 7.1% below the prior financial period respectively, at 10.90p (2024: 11.65p) and 10.63p (2024: 11.44p). Reported profit after tax was 6.1% below the prior year. \n Underlying basic and diluted earnings per share was 13.18p (2024: 11.04p) and 12.85p (2024: 10.84p), 19.4% and 18.6% ahead of the prior financial period respectively. This is after the adjustment for the exceptional items of £0.9m in the current financial period, compared to an exceptional income item of £0.2m, in the prior period. \n   \n The number of shares in issue as at 30 March 2025, was 44,000,000. This is 4,000,000 above the Company's IPO in June 2018, due to the share issue to partly fund the acquisition of Ambala in March 2025. \n   \n Dividend \n   \n As a result of the significant profit growth and cash generation reported for the 2025 financial period, the Board is pleased to recommend a final dividend of 6.8p per share (2024: 6.1p). The proposed total dividend for the year will total 10.2p (2024: 9.0p), a 13.3% increase year on year, continuing the progressive dividend policy employed by the Board. The dividend cover is 1.29x (2024: 1.23x) based on underlying basic earnings per share. \n   \n If approved by the shareholders at the Company's AGM on 29 August 2025, the final dividend of 6.8p will be paid on 5 September 2025. The record date for shareholders on the register will be 8 August 2025, with an ex-dividend date of 7 August 2025. The Group's ISIN and TIDM are GB00BDZWB751 and CBOX, respectively. \n   \n Cash position \n   \n \n \n \n \n \n \n \n 52 weeks ended 30 March 2025 \n \n \n 2024 \n \n \n \n \n \n \n \n £m \n \n \n £m \n \n \n \n \n \n \n \n   \n \n \n   \n \n \n \n \n EBITDA \n \n \n 7.81 \n \n \n 7.70 \n \n \n \n \n Exceptional items (see Note 10) \n \n \n 0.92 \n \n \n  (0.24) \n \n \n \n \n Underlying EBITDA \n \n \n 8.73 \n \n \n 7.46 \n \n \n \n \n Add back: \n \n \n \n \n \n \n \n \n \n \n Working capital \n \n \n 0.19 \n \n \n  (0.44) \n \n \n \n \n Share-based charge \n \n \n 0.22 \n \n \n 0.09 \n \n \n \n \n Net interest \n \n \n  (0.28) \n \n \n  (0.16) \n \n \n \n \n Corporation tax \n \n \n  (1.79) \n \n \n  (0.83) \n \n \n \n \n Free cash flow \n \n \n 7.07 \n \n \n 6.12 \n \n \n \n \n Capex \n \n \n  (3.07) \n \n \n  (1.35) \n \n \n \n \n Proceeds on sale of assets \n \n \n 0.02 \n \n \n 0.05 \n \n \n \n \n Ambala freehold \n \n \n  (6.32) \n \n \n   - \n \n \n \n \n Acquisition of subsidiary - Ambala \n \n \n  (15.94) \n \n \n   - \n \n \n \n \n Acquisition costs \n \n \n  (0.74) \n \n \n \n \n \n \n \n New share issue \n \n \n 7.20 \n \n \n   - \n \n \n \n \n Costs directly attributable to share issue \n \n \n  (0.47) \n \n \n \n \n \n \n \n Dividends \n \n \n  (3.80) \n \n \n  (3.36) \n \n \n \n \n Repayment of finance leases \n \n \n  (0.28) \n \n \n  (0.27) \n \n \n \n \n Movement in net surplus cash \n \n \n  (16.33) \n \n \n 1.19 \n \n \n \n \n Opening net surplus cash \n \n \n 7.31 \n \n \n 6.12 \n \n \n \n \n Closing net (debt)/ surplus cash \n \n \n  (9.02) \n \n \n 7.31 \n \n \n \n \n   \n Underlying EBITDA of £8.7m was £1.3m above the prior financial period (2024: £7.46m). Free cash flow was impacted by an increase of £1.0m in corporation tax paid, offset by £0.6m improvement in working capital. \n   \n Free cash flow generated was £7.1m (2024: £6.1m), this was offset by £3.1m of capital expenditure (2024: £1.4m), which included £1.1m for the new Bradford warehouse, classified under assets-under-construction, and returns to shareholders through dividends of £3.8m (2024: £3.4m). \n   \n The Group had £6.3m of cash and cash equivalents at year end, a £2.2m decrease on the prior financial period (2024: £8.5m). The Group's net debt position was £9.0m (2024: net cash of £7.3m), a £16.3m decrease on the prior financial period. This decrease is primarily due to the acquisition of Ambala which was partly funded through a new £15.2m term loan facility from banks. \n   \n Net cash position is calculated by taking the cash and cash equivalents less the outstanding mortgage debt relating to the Group's freehold properties and term loans from banks. \n   \n   \n   \n Capital employed and balance sheet \n   \n \n \n \n \n \n \n \n 52 weeks ended 30 March 2025 \n \n \n 2024 \n \n \n \n \n \n \n \n £m \n \n \n £m \n \n \n \n \n Goodwill \n \n \n 13.76 \n \n \n     -   \n \n \n \n \n Intangible assets \n \n \n 2.41 \n \n \n 0.73 \n \n \n \n \n Property, plant and equipment \n \n \n 20.64 \n \n \n 11.48 \n \n \n \n \n Right-of-use-assets \n \n \n 5.97 \n \n \n 2.27 \n \n \n \n \n Other financial assets \n \n \n 3.06 \n \n \n 1.05 \n \n \n \n \n Lease liabilities \n \n \n  (6.15) \n \n \n  (2.43) \n \n \n \n \n Provisions \n \n \n  (0.34) \n \n \n   -   \n \n \n \n \n Working capital \n \n \n 0.53 \n \n \n 1.85 \n \n \n \n \n Net (debt)/surplus cash \n \n \n  (9.02) \n \n \n 7.31 \n \n \n \n \n Tax \n \n \n  (3.87) \n \n \n  (2.96) \n \n \n \n \n Net assets \n \n \n 26.99 \n \n \n 19.30 \n \n \n \n \n   \n Goodwill addition in the financial period relates to the Ambala acquisition. Intangible assets have increased by £1.7m on the prior financial period, due to the capitalisation of costs relating to the new ERP system and website development and the Brand intangible asset identified as part of the Ambala acquisition. Property, plant and equipment has increased by £9.2m, due to additions of £1.1m for assets under construction, £6.3m for the Ambala industrial freehold as part of the acquisition and a further £0.2m increase in the valuations of the Group's three freehold properties, offset by £0.9m of depreciation charged for the year. Right-of-use assets has increased by £3.7m, as a result of the £4.0m additional Ambala store leases, marginally offset by the amortisation charge for the year. \n   \n Loans to franchisees increased by £2.0m during the year, predominantly due to short term bridging loans to franchisees for new store openings until their bank finance is approved and funds released by their banks. \n   \n Provisions relate to the dilapidation provision in Ambala, for future dilapidation charges under the store lease agreements. \n   \n Working capital decreased by £1.3m, due to an increase of £1.1m in inventories, £1.2m in accounts receivable, offset by an increase of £3.6m in accounts payable, predominantly due to the consolidation of Ambala. \n   \n Outlook and current trading \n   \n Trading to date in the new financial year has been positive, with total franchise sales and like-for-like sales increasing compared with the same period in FY25, and the Group is well positioned to meet market expectations for FY26. \n   \n Cake Box operates as a cash-generative, asset-light business, with a strong balance sheet. The Group continues to invest in marketing initiatives aimed at boosting customer engagement, while the store expansion strategy remains on track with a strong pipeline of new openings ahead. \n   \n The integration of an improved digital infrastructure with the Group's growing high street estate positions Cake Box well for continued growth. Management believes the acquisition of Ambala strengthens the Group's position as a multi-brand, multi-channel food business with further potential to grow both organically and through carefully considered strategic opportunities. \n   \n The Board remain focused on building long-term value through disciplined execution and strategic investment, reinforcing the Group's market position and supporting sustainable future performance. \n \n \n \n   \n CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME \n FOR THE 52 WEEKS ENDED 30 MARCH 2025 \n Company Registration No. 08777765 \n   \n \n \n \n \n \n \n \n Note \n \n \n 52 weeks ended 30 March 2025 \n \n \n 2024 \n \n \n \n \n \n \n \n   \n \n \n £ \n \n \n £ \n \n \n \n \n Revenue \n \n \n 3 \n \n \n 42,780,626 \n \n \n 37,844,963 \n \n \n \n \n Cost of sales \n \n \n \n \n \n            (20,323,680) \n \n \n                  (17,905,058) \n \n \n \n \n Gross profit \n \n \n \n \n \n                22,456,946 \n \n \n                      19,939,905 \n \n \n \n \n Administrative expenses before exceptional items \n \n \n \n \n \n            (15,105,112) \n \n \n                  (13,947,694) \n \n \n \n \n Impairment of receivables - writeback/(charge) \n \n \n 4 \n \n \n                              5,000 \n \n \n                             187,856 \n \n \n \n \n Exceptional items \n \n \n 4 \n \n \n                    (919,722) \n \n \n                             243,100 \n \n \n \n \n Administrative expenses \n \n \n 4 \n \n \n            (16,019,834) \n \n \n                  (13,516,738) \n \n \n \n \n Operating profit \n \n \n \n \n \n                   6,437,112 \n \n \n                         6,423,167 \n \n \n \n \n Finance income \n \n \n 6 \n \n \n                        149,395 \n \n \n 153,145 \n \n \n \n \n Finance expense \n \n \n 6 \n \n \n                    (433,567) \n \n \n                         (310,885) \n \n \n \n \n Profit before income tax \n \n \n \n \n \n                   6,152,940 \n \n \n                         6,265,427 \n \n \n \n \n Income tax expense \n \n \n 11 \n \n \n               (1,779,648) \n \n \n                     (1,606,742) \n \n \n \n \n Profit after income tax \n \n \n \n \n \n                   4,373,292 \n \n \n                         4,658,685 \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Other comprehensive income for the year \n \n \n \n \n \n \n \n \n \n \n \n \n \n Items that will not be subsequently reclassified to profit or loss: \n \n \n \n \n \n \n \n \n \n \n \n \n \n Revaluation of freehold property \n \n \n 13 \n \n \n                        154,907 \n \n \n                             223,178 \n \n \n \n \n Deferred tax on revaluation of freehold property \n \n \n 12 \n \n \n                       (38,727) \n \n \n                            (55,795) \n \n \n \n \n Total other comprehensive income for the year \n \n \n \n \n \n                        116,180 \n \n \n                             167,383 \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Total comprehensive income for the year \n \n \n \n \n \n                   4,489,472 \n \n \n                         4,826,068 \n \n \n \n \n Attributable to: \n \n \n \n \n \n \n \n \n \n \n \n \n \n Equity holders of the parent \n \n \n \n \n \n                   4,489,472 \n \n \n                         4,826,068 \n \n \n \n \n Earnings per share \n \n \n \n \n \n \n \n \n \n \n \n \n \n Basic - pence \n \n \n 34 \n \n \n                              10.90 \n \n \n                                   11.65 \n \n \n \n \n Diluted - pence \n \n \n 34 \n \n \n                              10.63 \n \n \n                                   11.44 \n \n \n \n \n   \n   \n The notes on form an integral part of these financial statements. \n   \n   \n   \n \n \n   \n   \n CONSOLIDATED STATEMENT OF FINANCIAL POSITION \n AS AT 30 MARCH 2025 \n   \n   \n \n \n \n \n \n \n \n Note \n \n \n As at 30 March 2025 \n \n \n As at 31 March 2024 \n \n \n \n \n \n \n \n   \n \n \n £ \n \n \n £ \n \n \n \n \n Assets \n \n \n \n \n \n \n \n \n \n \n \n \n \n Non-current assets \n \n \n \n \n \n \n \n \n \n \n \n \n \n Goodwill \n \n \n 14 \n \n \n 13,763,142 \n \n \n                                  -   \n \n \n \n \n Intangible assets \n \n \n 14 \n \n \n 2,412,202 \n \n \n 727,783 \n \n \n \n \n Property, plant and equipment \n \n \n 13 \n \n \n 20,636,295 \n \n \n 11,480,193 \n \n \n \n \n Right-of-use-assets \n \n \n 15 \n \n \n 5,974,944 \n \n \n 2,274,550 \n \n \n \n \n Other financial assets \n \n \n 18 \n \n \n 1,721,900 \n \n \n 564,535 \n \n \n \n \n \n \n \n \n \n \n 44,508,483 \n \n \n 15,047,061 \n \n \n \n \n Current assets \n \n \n \n \n \n \n \n \n \n \n \n \n \n Inventories \n \n \n 16 \n \n \n 3,657,778 \n \n \n 2,592,838 \n \n \n \n \n Trade and other receivables \n \n \n 17 \n \n \n 5,328,345 \n \n \n 4,154,184 \n \n \n \n \n Other financial assets \n \n \n 18 \n \n \n 1,335,998 \n \n \n 487,652 \n \n \n \n \n Cash and cash equivalents \n \n \n 32 \n \n \n 6,325,774 \n \n \n 8,454,265 \n \n \n \n \n \n \n \n \n \n \n 16,734,945 \n \n \n 15,688,939 \n \n \n \n \n Total Assets \n \n \n \n \n \n 61,243,428 \n \n \n 30,736,000 \n \n \n \n \n Equity and liabilities \n \n \n \n \n \n \n \n \n \n \n \n \n \n Equity \n \n \n \n \n \n \n \n \n \n \n \n \n \n Issued share capital \n \n \n 19 \n \n \n 440,000 \n \n \n 400,000 \n \n \n \n \n Capital redemption reserve \n \n \n 20 \n \n \n 40 \n \n \n 40 \n \n \n \n \n Share premium account \n \n \n 20 \n \n \n 6,691,995 \n \n \n                                  -   \n \n \n \n \n Share option reserve \n \n \n 20 \n \n \n 365,479 \n \n \n 95,266 \n \n \n \n \n Revaluation reserve \n \n \n 20 \n \n \n 3,733,218 \n \n \n 3,617,038 \n \n \n \n \n Retained earnings \n \n \n 20 \n \n \n 15,761,637 \n \n \n 15,188,345 \n \n \n \n \n Equity attributable to the owners of the parent company \n \n \n \n \n \n 26,992,369 \n \n \n 19,300,689 \n \n \n \n \n Current liabilities \n \n \n \n \n \n \n \n \n \n \n \n \n \n Trade and other payables \n \n \n 24 \n \n \n 8,546,315 \n \n \n 4,892,228 \n \n \n \n \n Lease liabilities \n \n \n 15 \n \n \n 688,363 \n \n \n 280,425 \n \n \n \n \n Short-term borrowings \n \n \n 23 \n \n \n 2,053,091 \n \n \n 146,544 \n \n \n \n \n Current tax payable \n \n \n \n \n \n 953,949 \n \n \n 948,523 \n \n \n \n \n Provisions \n \n \n 25 \n \n \n 335,864 \n \n \n                                  -   \n \n \n \n \n \n \n \n \n \n \n 12,577,582 \n \n \n 6,267,720 \n \n \n \n \n Non-current liabilities \n \n \n \n \n \n \n \n \n \n \n \n \n \n Lease liabilities \n \n \n 15 \n \n \n 5,461,384 \n \n \n 2,149,413 \n \n \n \n \n Borrowings \n \n \n 23 \n \n \n 13,293,581 \n \n \n 997,050 \n \n \n \n \n Deferred tax liabilities \n \n \n 12 \n \n \n 2,918,512 \n \n \n 2,021,128 \n \n \n \n \n \n \n \n \n \n \n 21,673,477 \n \n \n 5,167,591 \n \n \n \n \n Total Equity and liabilities \n \n \n   \n \n \n 61,243,428 \n \n \n 30,736,000 \n \n \n \n \n   \n   \n The notes form an integral part of these financial statements. \n   \n   \n \n \n   \n   \n CONSOLIDATED STATEMENT OF CASH FLOWS \n FOR THE 52 WEEKS ENDED 30 MARCH 2025 \n   \n \n \n \n \n \n \n \n Note \n \n \n 52 weeks ended 30 March 2025 \n \n \n 2024 \n \n \n \n \n \n \n \n   \n \n \n £ \n \n \n £ \n \n \n \n \n Cash flows from operating activities \n \n \n \n \n \n \n \n \n \n \n \n \n \n Profit before income tax \n \n \n \n \n \n 6,152,940 \n \n \n 6,265,427 \n \n \n \n \n Adjusted for: \n \n \n \n \n \n \n \n \n \n \n \n \n \n Depreciation of property, plant, and equipment \n \n \n 4 & 13 \n \n \n 939,499 \n \n \n 856,282 \n \n \n \n \n Amortisation of intangible assets \n \n \n 4 & 14 \n \n \n 136,621 \n \n \n 106,810 \n \n \n \n \n Depreciation of right-of-use assets \n \n \n 4& 15 \n \n \n 299,940 \n \n \n 299,940 \n \n \n \n \n Impairment of website costs \n \n \n \n \n \n 176,935 \n \n \n                                          - \n \n \n \n \n (Profit)/Loss on disposal of property, plant, and equipment \n \n \n \n \n \n  (21,390) \n \n \n 13,606 \n \n \n \n \n Share based payment expense \n \n \n \n \n \n 215,381 \n \n \n 93,445 \n \n \n \n \n Finance income \n \n \n \n \n \n  (149,395) \n \n \n  (153,145) \n \n \n \n \n Finance costs \n \n \n \n \n \n 433,567 \n \n \n 310,885 \n \n \n \n \n Decrease/(increase) in inventories \n \n \n \n \n \n 296,596 \n \n \n 197,886 \n \n \n \n \n (Increase)/decrease in trade and other receivables \n \n \n \n \n \n  (192,348) \n \n \n  (1,470,563) \n \n \n \n \n (Increase)/decrease in other financial assets \n \n \n \n \n \n  (2,005,711) \n \n \n  (297,775) \n \n \n \n \n Increase/(decrease) in trade and other payables \n \n \n \n \n \n 2,105,455 \n \n \n 1,125,815 \n \n \n \n \n (Decrease)/increase in provisions \n \n \n \n \n \n                                      - \n \n \n  (243,100) \n \n \n \n \n Cash generated from operations \n \n \n \n \n \n 8,388,090 \n \n \n 7,105,513 \n \n \n \n \n Taxation paid \n \n \n \n \n \n  (1,791,721) \n \n \n  (829,251) \n \n \n \n \n Net cash inflow from operating activities \n \n \n \n \n \n 6,596,369 \n \n \n 6,276,262 \n \n \n \n \n Cash flows from investing activities \n \n \n \n \n \n \n \n \n \n \n \n \n \n Acquisition of subsidiary net of cash acquired \n \n \n  21 \n \n \n  (15,935,058) \n \n \n                                          - \n \n \n \n \n Net assets on acquisition \n \n \n \n \n \n (1,788,044) \n \n \n - \n \n \n \n \n Goodwill on acquisition \n \n \n \n \n \n (13,763,142) \n \n \n - \n \n \n \n \n Intangible assets on acquisition \n \n \n \n \n \n (742,254) \n \n \n - \n \n \n \n \n Acquisition subsidiary - cash balance \n \n \n \n \n \n 358,382 \n \n \n - \n \n \n \n \n Purchase of new subsidiary freehold \n \n \n 13 \n \n \n  (6,319,860) \n \n \n                                          - \n \n \n \n \n Purchases of property, plant and equipment \n \n \n 13 \n \n \n  (1,004,971) \n \n \n  (892,226) \n \n \n \n \n Additions in intangible assets \n \n \n 14 \n \n \n  (1,008,303) \n \n \n  (453,920) \n \n \n \n \n Purchase of assets under construction \n \n \n 13 \n \n \n  (1,052,175) \n \n \n                                          - \n \n \n \n \n Proceeds from sale of property, plant and equipment \n \n \n \n \n \n 25,031 \n \n \n 51,620 \n \n \n \n \n Finance income \n \n \n \n \n \n 149,395 \n \n \n 153,145 \n \n \n \n \n Net cash outflow from investing activities \n \n \n \n \n \n         (25,145,941) \n \n \n  (1,141,381) \n \n \n \n \n Cash flows from financing activities \n \n \n \n \n \n \n \n \n \n \n \n \n \n New share issue \n \n \n \n \n \n 7,200,000 \n \n \n                                          - \n \n \n \n \n Costs directly attributable to share issue \n \n \n \n \n \n  (468,005) \n \n \n \n \n \n \n \n Repayment of finance leases \n \n \n \n \n \n  (280,425) \n \n \n  (270,118) \n \n \n \n \n Repayment of borrowings \n \n \n \n \n \n  (740,788) \n \n \n  (93,196) \n \n \n \n \n New borrowings \n \n \n \n \n \n 14,943,866 \n \n \n                                          - \n \n \n \n \n Dividends paid \n \n \n 8 \n \n \n  (3,800,000) \n \n \n  (3,360,000) \n \n \n \n \n Finance cost \n \n \n \n \n \n  (433,567) \n \n \n  (310,885) \n \n \n \n \n Net cash inflow / (outflow) from financing activities \n \n \n \n \n \n 16,421,081 \n \n \n  (4,034,199) \n \n \n \n \n Net (decrease) / increase in cash and cash equivalents \n \n \n \n \n \n  (2,128,491) \n \n \n 1,100,682 \n \n \n \n \n Cash and cash equivalents at 1 April 2024 \n \n \n \n \n \n 8,454,265 \n \n \n 7,353,583 \n \n \n \n \n Cash and cash equivalents at 30 March 2025 \n \n \n 32 \n \n \n 6,325,774 \n \n \n 8,454,265 \n \n \n \n \n   \n The notes form an integral part of these financial statements. \n   \n   \n \n \n   \n CONSOLIDATED STATEMENT OF CHANGES IN EQUITY \n FOR THE 52 WEEKS ENDED 30 MARCH 2025 \n   \n \n \n \n \n \n \n \n Attributable to the owners of the Parent Company \n \n \n \n \n \n \n \n Share capital \n \n \n Capital redemption reserve \n \n \n Share premium account \n \n \n Share option reserve \n \n \n Revaluation reserve \n \n \n Retained earnings \n \n \n Total \n \n \n \n \n \n \n \n £ \n \n \n £ \n \n \n £ \n \n \n £ \n \n \n £ \n \n \n £ \n \n \n £ \n \n \n \n \n At 31 March 2023 \n \n \n           400,000 \n \n \n                           40 \n \n \n                          -   \n \n \n                            -   \n \n \n      3,449,655 \n \n \n           13,889,660 \n \n \n            17,739,355 \n \n \n \n \n Profit for the year \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n              4,658,685 \n \n \n               4,658,685 \n \n \n \n \n Revaluation of freehold property \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n           223,178 \n \n \n - \n \n \n                    223,178 \n \n \n \n \n Deferred tax on revaluation of freehold property \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n          (55,795) \n \n \n - \n \n \n                   (55,795) \n \n \n \n \n Total comprehensive income for the year \n \n \n - \n \n \n                             -   \n \n \n                          -   \n \n \n                              - \n \n \n           167,383 \n \n \n              4,658,685 \n \n \n               4,826,068 \n \n \n \n \n Transactions with the owners in their capacity as owners \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Share-based payments \n \n \n - \n \n \n - \n \n \n - \n \n \n               93,445 \n \n \n - \n \n \n - \n \n \n                       93,445 \n \n \n \n \n Deferred tax on share-based payments \n \n \n - \n \n \n - \n \n \n - \n \n \n                  1,821 \n \n \n - \n \n \n - \n \n \n                          1,821 \n \n \n \n \n Dividends paid \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n          (3,360,000) \n \n \n           (3,360,000) \n \n \n \n \n At 31 March 2024 \n \n \n           400,000 \n \n \n                           40 \n \n \n                          -   \n \n \n               95,266 \n \n \n      3,617,038 \n \n \n           15,188,345 \n \n \n            19,300,689 \n \n \n \n \n Profit for the year \n \n \n - \n \n \n - \n \n \n \n \n \n - \n \n \n - \n \n \n              4,373,292 \n \n \n               4,373,292 \n \n \n \n \n Revaluation of freehold property \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n           154,907 \n \n \n - \n \n \n                    154,907 \n \n \n \n \n Deferred tax on revaluation of freehold property \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n          (38,727) \n \n \n - \n \n \n                   (38,727) \n \n \n \n \n Total comprehensive income for the year \n \n \n 0 \n \n \n                             -   \n \n \n                          -   \n \n \n                            -   \n \n \n           116,180 \n \n \n              4,373,292 \n \n \n               4,489,472 \n \n \n \n \n Transactions with the owners in their capacity as owners \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Share-based payments \n \n \n - \n \n \n - \n \n \n - \n \n \n            215,381 \n \n \n - \n \n \n - \n \n \n                    215,381 \n \n \n \n \n Deferred tax on share-based payments \n \n \n - \n \n \n - \n \n \n - \n \n \n               54,832 \n \n \n - \n \n \n - \n \n \n                       54,832 \n \n \n \n \n Shares issued during the financial period \n \n \n              40,000 \n \n \n - \n \n \n      7,160,000 \n \n \n - \n \n \n - \n \n \n - \n \n \n               7,200,000 \n \n \n \n \n Costs directly attributable to share issue \n \n \n  - \n \n \n - \n \n \n      (468,005) \n \n \n - \n \n \n - \n \n \n - \n \n \n                (468,005) \n \n \n \n \n Dividends paid \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n          (3,800,000) \n \n \n           (3,800,000) \n \n \n \n \n At 30 March 2025 \n \n \n           440,000 \n \n \n                           40 \n \n \n      6,691,995 \n \n \n            365,479 \n \n \n      3,733,218 \n \n \n           15,761,637 \n \n \n            26,992,369 \n \n \n \n \n   \n The notes form an integral part of these financial statements. \n \n NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE 52 WEEKS ENDED 30 MARCH 2025 \n   \n 1.   General information \n   \n Cake Box Holdings Plc is a listed company limited by shares, incorporated in England and Wales, with company number 08777765 and domiciled in the United Kingdom. Its registered office is 20 - 22 Jute Lane, Enfield, Middlesex, EN3 7PJ. \n   \n The financial statements cover Cake Box Holdings Plc ('Company') and the entities it controlled at the end of, or during, the financial year (referred to as the 'Group'). \n   \n The principal activity of the Group is a specialist retailer of fresh cream cakes, Asian confectionary and savoury products and franchise operator. \n   \n 2.   Material accounting policy information             \n   \n             2.1        Basis of preparation of financial statements \n   \n The financial information set out in this statement does not constitute statutory accounts as defined in section 435 of the Companies Act 2006. This set of financial results was approved by the Board on 14 July 2025. The financial information for the 52 weeks ended 30 March 2025 and the year ended 31 March 2024 have been extracted from the statutory accounts for each year. The auditor's report on the 2025 statutory accounts was (i) unqualified, (ii) did not include references to any matters to which the auditor drew attention by way emphasis without qualifying its reports and (iii) did not contain statements under section S498(2) or S498(3) of the Companies Act 2006. \n   \n While the financial information included in this preliminary announcement has been prepared in accordance with the recognition and measurement criteria of International Financial Reporting Standards, this announcement does not itself contain sufficient information to comply with those standards. The Company expects to publish full financial statements that comply with International Financial Reporting Standards in August 2025. \n   \n The consolidated financial statements for the 52 weeks ended 30 March 2025 have been prepared in accordance with United Kingdom adopted International Financial Reporting Standards (UK adopted IFRS) and those parts of the Companies Act 2006 that are applicable to companies which apply UK adopted IFRS. \n   \n The consolidated financial statements have been prepared under the historical cost convention, other than freehold land and buildings which are measured at fair value. \n   \n The numbers presented in the financial statements have been rounded to the nearest pound (£) unless otherwise stated. \n Acquisition costs that are directly attributable to the business combination are expensed in the income statement. \n   \n Goodwill and other intangible assets arising from business combinations \n   \n Goodwill arising on consolidation represents the excess of the fair value of the consideration given over the fair value of the identifiable net assets acquired. Goodwill is capitalised on the balance sheet and subject to an annual impairment test, or more frequently if there are indicators of impairment. Impairments to goodwill are charged to the income statement in the period in which they arise. \n   \n Business combinations are accounted for using the acquisition method as at the acquisition date, which is the date on which control is transferred to the Group. The Group determines whether a particular set of activities and assets is a business by assessing whether the set of assets and activities acquired includes, at a minimum, an input and substantive process and whether the acquired set has the ability to produce outputs. \n   \n The carrying amounts of the Group's non-financial assets, other than deferred tax assets, are reviewed at each reporting date to determine whether there is any indication of impairment. If any such indication exists, then the asset's recoverable amount is estimated. For goodwill, the recoverable amount is estimated each period end at the same time. \n   \n Acquisition costs that are directly attributable to the business combination are expensed in the income statement. \n   \n The recoverable amount of an asset or cash-generating unit is the greater of its value in use and its fair value less costs to sell. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. For the purpose of impairment testing, assets that cannot be tested individually are grouped together into the smallest group of assets that generates cash inflows from continuing use that are largely independent of the cash inflows of other assets or groups of assets (the \"cash-generating unit\"). The goodwill acquired in a business combination, for the purpose of impairment testing, is allocated to cash-generating units, or (\"CGU\"). Subject to an operating segment ceiling test, for the purposes of goodwill impairment testing, CGUs to which goodwill has been allocated are aggregated so that the level at which impairment is tested reflects the lowest. \n   \n An impairment loss is recognised if the carrying amount of an asset or its CGU exceeds its estimated recoverable amount. Impairment losses are recognised in profit or loss. Impairment losses recognised in respect of CGUs are allocated first to reduce the carrying amount of any goodwill allocated to the units, and then to reduce the carrying amounts of the other assets in the unit (group of units) on a pro rata basis. \n   \n An impairment loss in respect of goodwill is not reversed. In respect of other assets, impairment losses recognised in prior periods are assessed at each reporting date for any indications that the loss has decreased or no longer exists. An impairment loss is reversed if there has been a change in the estimates used to determine the recoverable amount. An impairment loss is reversed only to the extent that the asset's carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortisation, if no impairment loss had been recognised. \n   \n Judgements \n   \n The preparation of financial statements under IFRS requires management to make judgements, estimates and assumptions that affect the application of accounting policies and reported amounts of assets, liabilities, income and expenses. The estimates and associated assumptions are based on historical experience and factors that are believed to be reasonable under the circumstances, the results of which form the basis of making judgements about carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates. Estimates and assumptions are reviewed on an ongoing basis and any revision to estimates or assumptions are recognised in the period in which they are revised and in future periods affected. \n   \n Expected Credit Loss Allowance \n             The Group exercises judgement in relation to the calculation of expected credit losses on trade receivables and franchisee loans. This includes ascertaining what constitutes a significant increase in credit risk, what is defined as loan default and how forward-looking information has been incorporated into the simplified approach for trade receivables. Please see Note 28 for further details. \n   \n Key areas of estimation uncertainty \n   \n The following areas of estimation uncertainty which have had the most significant effect on amounts recognised in the financial statements: \n   \n Provisions \n The Group had previously recognised provisions following a data breach which impacted the Group's website payment system. The provision related to the fine received by the merchant service provider, and estimated costs associated including potential fines from the ICO in respect of GDPR breaches and associated legal and professional fees. Management used judgement in respect of potential fees and fines and estimates to calculate the quantum of costs. \n   \n Freehold property \n Freehold properties are held at valuation. When measuring the fair value of an asset or liability, the Group uses observable market data as far as possible. Fair values are categorised into different levels in a fair value hierarchy based on the inputs used in the valuation techniques as follows: \n   \n ·      Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities. \n ·      Level 2: inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly (i.e.as prices) or indirectly (i.e. derived from prices). \n ·      Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs). \n   \n The fair value of investment property was determined by external, independent property valuers, having appropriate recognised professional qualifications and recent experience in the location and category of the property being valued. The independent valuers provide the fair value of the Group's investment property portfolio every 12 months. \n   \n Goodwill and other intangible assets arising from business combinations \n On 21 March 2025 the Group acquired 100% of the voting equity instruments of Ambala Food Limited. Accounting for the acquisitions has required management to exercise judgement and make estimations in several areas as set out below. When the Group obtains control of a business, the business combination is accounted for using the acquisition method of accounting. By applying this method all assets acquired, and liabilities assumed are to be measured at fair value at acquisition date. The excess of the purchase consideration over the fair value of the identifiable assets, liabilities and contingent liabilities acquired (if any) is recognised as goodwill. \n   \n Goodwill is initially recognised as an asset at cost and is subsequently measured at cost less any accumulated impairment losses. Goodwill is not amortised but is tested annually for impairment, or more frequently if events or changes in circumstances indicate that it might be impaired. For the purpose of impairment testing, goodwill is allocated to each of the Group's cash-generating units (CGUs) that are expected to benefit from the combination. \n   \n Impairment is determined by comparing the recoverable amount of a CGU with the carrying amount, including goodwill. If the recoverable amount is less than the carrying amount, an impairment loss is recognised immediately in the income statement and is not reversed in subsequent periods. If the fair values of the net assets and liabilities assumed are more than the purchase consideration, the excess is recognised as a bargain purchase gain immediately in profit or loss. \n   \n The process followed involved: \n   \n ·     Purchase price allocation - the allocation of the purchase considerations across group operations, which involves estimation as to the value of each of the acquired group's operations, considering longer term growth forecasts for each significant element of the business. This allocation also involves performing cross-checks to ensure the integrity of the valuation as a whole. \n ·      Identifying the assets and liabilities acquired- identifying those assets, both tangible and intangible, that existed at the time of the transaction. \n ·     Valuing individual assets and liabilities - depending on the nature of the assets and liabilities, different valuation techniques were adopted to value each in turn. \n   \n The most significant area where management have exercised judgement and made estimations was in valuing the acquired brand and intellectual property. A relief from royalty method was used taking account of an appropriate royalty rate, UEL and discount rate, as well as cashflows from existing customers and expected future growth. \n   \n 2.2        Functional and presentation currency \n   \n The currency of the primary economic environment in which the Parent and its subsidiaries operate (the functional currency) is Pound Sterling (\"GBP or £\") which is also the presentation currency. \n   \n 2.3        Basis of consolidation \n   \n Subsidiaries \n   \n Subsidiaries are entities controlled by the Group. The Group 'controls' an entity when it is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. The financial statements of subsidiaries are included in the consolidated financial statements from the date on which control commences until the date on which control ceases. \n   \n Changes in the Group's interest in a subsidiary that do not result in a loss of control are accounted for as equity transactions. \n   \n Transactions eliminated on consolidation \n   \n Intra-group balances and transactions, and any unrealised income and expenses arising from intra-group transactions, are eliminated. \n   \n A list of the significant investments in subsidiaries, including the name, country of incorporation and proportion of ownership interest is given in Note 30 to the Company's separate financial statements. \n   \n   \n 2.4        Application of New and Revised IFRS's \n   \n At the date of authorisation of these financial statements the following Standards and Interpretations were in issue and have been applied in these financial statements. There has not been a material impact on the Group following their application: \n             \n \n \n \n \n \n \n \n \n \n \n Effective Date \n \n \n \n \n IAS 1 \n \n \n Amendments clarify how conditions with which an entity must comply within twelve months after the reporting period affect the classification of a liability. \n   \n \n \n 1 January 2024 \n \n \n \n \n IAS 16 \n \n \n Amendments include requirements for sale and leaseback transactions in IFRS 16 to explain how an entity accounts for a sale and leaseback after the date of the transaction. \n \n \n 1 January 2024 \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n   \n At the date of authorisation of these financial statements the following Standards and Interpretations which have not been applied in these financial statements were in issue but not yet effective and are not expected to have a material impact on the Group: \n   \n \n \n \n \n \n \n \n \n \n \n Effective Date \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n IAS 21 \n \n \n Amendments include requirements for sale and leaseback transactions in IFRS 16 to explain how an entity accounts for a sale and leaseback after the date of the transaction. \n \n \n 1 January 2025 \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n IFRS 18 \n   \n   \n   \n   \n   \n   \n   \n   \n   \n   \n   \n   \n   \n   \n IFRS 19 \n   \n   \n   \n   \n   \n   \n \n \n IFRS 18 is the future standard that replaces IAS 1 in its entirety and will thus deal with presentation of primary statements and notes. Some key impacts are as follows: \n ·      Improving structure of the statement of profit or loss by requiring information to be classified in either operating, investing, financing, taxation, or discontinued categories. \n ·      Improving the requirements over the level of aggregation and disaggregation of line items and the information in notes in order to provide more useful information. \n ·      Providing specific requirements over the reporting of additional sub-totals, line items, and other aspects of presentation that relate to alternative performance measures (for example non-IFRS measures). \n   \n   \n IFRS 19 is a new standard that enables reduced disclosures in the IFRS accounts of subsidiaries that do not have public accountability. IFRS 19 is not relevant at this level of the Group as the Company is a parent and not a subsidiary. \n \n \n 1 January 2027 \n   \n   \n   \n   \n   \n   \n   \n   \n   \n   \n   \n   \n   \n   \n 1 January 2027 \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n 2.5        Segment reporting \n   \n Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision-maker ('CODM'). The CODM, who is responsible for allocating resources and assessing performance of the operating segments, has been identified as the executive directors that make strategic decisions. Whilst the Group's trading has numerous components, following the acquisition of Ambala, the CODM is of the opinion that there are two operating segments. This is in line with internal reporting provided to the executive directors. \n   \n   \n   \n   \n   \n 2.6        Going concern \n   \n The Directors pay careful attention to the cost base of the Group ensuring not only that it is kept at a level to satisfy the commercial requirements but also that it remains appropriate to the level of activity of the Group and the financial resources available to it. \n   \n The current cash balance was as at 30 March 2025 £6.3m (FY24: £8.5m), and the Group continues to be cash generative. \n   \n Based on the current working capital forecast, there is no need to raise additional funds as the Group considers that it is in a position where the scenario of not meeting liabilities is remote. After making enquiries and considering the assumptions upon which the forecasts have been based, the directors have a reasonable expectation that the Group has adequate resources to continue in operational existence for the period of at least twelve months from the date of approval of these financial statements. For these reasons, they continue to adopt the going concern basis of accounting in preparing the annual financial statements.         \n   \n 2.7        Revenue recognition \n   \n The Group recognises revenue from the following major sources: \n ·      Sale of sponges, fresh cream and other foods and goods to franchisees \n ·      Online commission on the sales of cakes and related products to customers \n ·      Franchise packages \n ·      National marketing levy \n ·      Sales of Asian confectionary and savoury products \n   \n Sale of sponges and related ingredients to franchisees \n For sales of goods to franchisees, revenue is recognised when control of the goods has transferred, being at the point at which the goods are dispatched and delivered, which occurs on the same day. Payment of the transaction price is due within seven days after statements are forwarded to franchisees. The Group actively works with its franchisees to ensure credit terms are met and if terms are required to be extended a suitable debt recovery plan is agreed.  \n   \n Online commission on the sales of cakes and related products to customers \n Online sales which include click and collect sales, where the franchisee has the primary responsibility for the fulfilment of the order and the Group is collecting the consideration paid by the customers on behalf of the franchisee as agent, are not recognised as revenue of the Group. Only the net commission amount is recognised. Revenue is recognised at the date of order and payment is taken at this point. \n   \n Franchise packages \n             The franchise packages consist of revenues which relate to pre- and post-opening costs mainly for store fit-out; and initial set up costs for pre-opening support, and franchisee and staff training. \n   \n             The pre- and post-opening costs are required to get the new franchisee trading and are therefore recognised at a point in time which is at the end of the month in which trading commences. Each package is tailored to a specific franchisee's needs and elements can be added or removed as appropriate which will affect the price. The performance obligation of the Group is met, when the store is handed over to the franchisee and he/she accepts it and commences trading. The franchisee is then obligated to settle the invoices raised by the Group for the costs incurred by the Group in getting the store in a position where it can start trading. Included in the franchise packages, is a franchise fee, the amount of which will depend on whether it is a new or existing franchisee opening the new store. \n   \n Holding deposits received from franchisees for new stores are not treated as revenue when received. The deposits are held under 'Other Payables' in the Group's financial statements. If the new store is completed and the franchisee accepts it and commences trading, the deposit is allocated against the costs associated with the new store and recognised as revenue at this point. If the new store does not proceed, the deposit is refunded to the franchisee. \n   \n National marketing Levy \n Franchisees contribute a percentage of their franchise sales to the National Marketing Fund managed by the Group. The purpose of the fund is to build franchise sales through increased awareness of the Cake Box brand and the website. For the funds received, the Group provides national marketing initiatives and services. These performance obligations are considered to constitute a revenue stream, and the contributions received by the Group are therefore recognised as revenue. Revenue recognition is measured on an input basis as the costs of providing the services are incurred. The Group provides the services on a break-even basis, such that the fund does not retain a long-term surplus or deficit. As such, the level of revenue and costs recognised in respect of fulfilling the national marketing obligations are equal. Any timing difference between contributions received and costs incurred are held as a contract asset or liability on the Consolidated Statement of Financial Position.  \n   \n Sales of Asian confectionary and savoury products \n For sales of Asian confectionary and savoury products, revenue is recognised in the Point-Of-Sale software in stores, when payment (cash or credit/debit card) is received from the customer. Online sales are recognised when payment is received via credit and debit cards from customers. For wholesale sales to stockists, sales are recognised when invoiced to third parties. \n   \n    2.8       Current and deferred taxation \n   \n                 Current tax liabilities \n Current tax for the current and prior periods is, to the extent unpaid, recognised as a liability. If the amount already paid in respect of the current and prior periods exceeds the amount due for those periods, the excess is recognised as an asset, limited to the extent that it is probable that taxable profits will be available against which those deductible temporary differences can be utilised. \n   \n A provision is recognised for those matters for which the tax determination is uncertain, but it is considered probable that there will be a future outflow of funds to a tax authority. The provisions are measured at the best estimate of the amount expected to become payable. \n   \n No material uncertain tax positions exist as at 30 March 2025. This assessment relies on estimates and assumptions and may involve a series of complex judgements about future events. To the extent that the final tax outcome of these matters is different from the amounts recorded, such differences will impact income tax expense in the period in which such determination is made. \n   \n Current taxes are calculated using tax rates and laws that are enacted or substantively enacted at the reporting date. \n   \n               Deferred Tax \n Deferred tax is recognised on differences between the carrying amounts of assets and liabilities in the financial statements and their corresponding tax bases (known as temporary differences). Deferred tax liabilities are recognised for all temporary differences that are expected to increase taxable profit in the future. Deferred tax assets are recognised for all temporary differences that are expected to reduce taxable profit in the future, and any unused tax losses or unused tax credits, limited to the extent that it is probable that taxable profits will be available against which those deductible temporary differences can be utilised. \n   \n The net carrying amount of deferred tax assets is reviewed at each reporting date and is adjusted to reflect the current assessment of future taxable profits. Deferred tax is calculated at the tax rates that are expected to apply to the taxable profit (tax loss) of the periods in which the Company expects the deferred tax asset to be realised or the deferred tax liability to be settled. \n   \n Deferred taxes are calculated using tax rates and laws that are enacted or substantively enacted at the reporting date that are expected to apply as or when the temporary differences reverses. \n A deferred tax asset is recognised in respect of share-based payments to the extent that the tax deduction is probable, and it relates to services already received. \n The asset is measured based on the expected future tax deduction under the applicable tax rules (e.g. intrinsic value of share options at exercise), even if the expense is recognised in equity for accounting purposes. Any excess between the tax deduction and accounting expense is recognised in equity. \n In a business combination, deferred tax is recognised on identifiable assets acquired and liabilities assumed, where there is a difference between the fair value and tax base at acquisition. For example, deferred tax liabilities have been recognised on acquired intangible assets where the fair value uplift exceeds their tax base. These liabilities are recognised as part of the business combination accounting and increase the net identifiable liabilities, which in turn increases the amount of goodwill recognised. \n   \n Deferred tax is not recognised on: \n ·      the initial recognition of goodwill, because goodwill is a residual and not an identifiable temporary difference \n ·      temporary differences arising on the initial recognition of assets or liabilities in a transaction that is not a business combination and that affects neither accounting profit nor taxable profit \n Deferred tax assets and liabilities are offset only where there is a legally enforceable right to offset current tax assets against current tax liabilities, and they relate to income taxes levied by the same taxation authority on the same taxable entity. \n Tax Expense \n Income tax expense represents the sum of the tax currently payable and deferred tax movement for the current period. The tax currently payable is based on taxable profit for the year. \n   \n Income taxes are recognised in profit or loss unless they relate to items recognised in other comprehensive income or equity, in which case the income tax is recognised in other comprehensive income or equity respectively. \n   \n 2.9        Property, Plant and Equipment - held at cost \n   \n Property, plant and equipment, other than freehold properties, are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management. \n   \n Land is not depreciated. Depreciation on other assets is charged to allocate the cost of assets less their residual value over their estimated useful lives, using the straight‑line method. \n   \n Depreciation is provided on the following annual basis: \n \n \n \n \n Freehold buildings \n \n \n - \n \n \n Over 40 to 50 years \n \n \n \n \n Freehold property improvements \n \n \n - \n \n \n Over 4 to 30 years \n \n \n \n \n Plant & machinery \n \n \n - \n \n \n Over 4 - 15 years \n \n \n \n \n Motor vehicles \n \n \n - \n \n \n 4 years \n \n \n \n \n Fixtures & fittings \n \n \n - \n \n \n Over 4 to 12 years \n \n \n \n \n Assets under construction \n \n \n - \n \n \n Not depreciated \n \n \n \n \n   \n Assets under the course of construction are carried at cost less any recognised impairment loss. Depreciation of these assets commences when the assets become available for use. \n   \n The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date. \n   \n Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in the profit or loss. \n   \n 2.10      Property, plant and equipment - held at valuation \n   \n Individual freehold properties are carried at fair value at the date of the revaluation less any subsequent accumulated depreciation and subsequent impairment losses. Revaluations are undertaken with sufficient regularity to ensure the carrying amount does not differ materially from that which would be determined using fair value at each Consolidated Statement of Financial Position date. \n   \n Fair values are determined by an independent valuer and updated by the Directors from market-based evidence. \n   \n Revaluation gains are recognised in Other Comprehensive Income. Revaluation losses are recognised in the profit and loss, unless the losses relate to previously recognised gains, in which case it will be recognised in Other Comprehensive Income. Any excess losses are recognised in the profit or loss. \n   \n 2.11      Inventories \n   \n Inventories are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. \n   \n 2.12      Financial instruments \n   \n Recognition of Financial Instruments \n   \n Financial assets and financial liabilities are recognised when the Group becomes party to the contractual provisions of the instrument. \n   \n Trade and other receivables \n Trade and other receivables without a significant financing component are initially measured at transaction price which approximates fair value at the transaction date. All sales are made on the basis of normal credit terms, and the receivables do not bear interest. Where credit is extended beyond normal credit terms, receivables are measured at amortised cost using the effective interest method. All trade receivables are subsequently measured at amortised cost.  At the end of each reporting period, the carrying amounts of trade and other receivables are reviewed. Impairment allowance for current and non-current trade receivables are recognised based on the simplified approach within IFRS 9 using a provision matrix in the determination of the lifetime expected credit losses. During this process the probability of the non-payment of the trade receivables is assessed. This probability is then multiplied by the amount of the expected loss arising from default to determine the lifetime expected credit loss for the trade receivables. For trade receivables, which are reported net, such allowances are recorded in a separate allowance account with the loss being recognised in the statement of profit or loss. On confirmation that the trade receivable will not be collectable, the gross carrying value of the asset is written off against the associated provision. \n   \n Other financial assets \n             Included in other financial assets are loans to franchisees. These loans are interest free, however include an arrangement fee, at the discretion of the Group, which is spread over the term of the loan. These loans have been discounted to fair value using a market rate. The impact of this discounting has been recognised in finance costs. At the end of each reporting period, the carrying amounts of other financial assets are reviewed on an individual balance basis and appropriate impairments are made if losses are anticipated. If a previously impaired balance is subsequently received, the impairment is reversed through the profit and loss. See notes 27 and 28 for further details. \n   \n Trade and other payables \n Trade and other payables are initially measured at fair value and subsequently at amortised cost. Trade payables are obligations on the basis of normal credit terms and do not bear interest. Trade payables denominated in a foreign currency are translated into Sterling using the exchange rate at the reporting date. Foreign exchange gains or losses are included in other income or other expenses. \n   \n 2.13      Financial instruments \n   \n Bank loans and overdrafts \n All borrowings are initially recorded at fair value, net of transaction costs. Borrowings are subsequently carried at amortised cost under the effective interest method (EIR). The EIR method amortises transaction costs and spreads interest expense over the relevant period, so that the interest expense in each period represents a constant rate on the carrying amount of the liability. Interest expense on the term loan is recognized in profit or loss within finance costs using the EIR. \n   \n Borrowings are classified as current liabilities unless the Group has an unconditional right to defer settlement of the liability for at least 12 months after the reporting date. \n   \n 2.14      Finance costs and income \n   \n Finance costs are charged to the profit and loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Transaction costs are deducted from the amount of the borrowing at initial recognition and are part of the effective interest recognised in profit or loss. \n   \n Finance income is charged to the profit and loss on receipt or accrued if there is a signed agreement in place. \n   \n 2.15      Cash and cash equivalents \n   \n Cash and cash equivalents comprise cash on hand and deposits with maturities of three months or less from inception, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of changes in value. \n   \n Cash in transit, such as deposits sent to the bank, but not yet cleared or settled at the reporting date, is included in cash and cash equivalents where the Group retains the risks and rewards of ownership. \n   \n             2.16      Dividends \n   \n Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an Annual General Meeting. \n   \n 2.17      Leases \n   \n The Group assesses whether a contract is, or contains, a lease, at inception of the contract. The Group recognises a right-of-use asset and a corresponding lease liability with respect to all lease arrangements in which it is the lessee, except for short-term leases (defined as leases with a lease term of 12 months or less) and leases of low value assets (such as tablets and personal computers, small items of office furniture and telephones). For these leases, the Group recognises the lease payments as an operating expense on a straight-line basis over the term of the lease unless another systematic basis is more representative of the time pattern in which economic benefits from the leased assets are consumed. \n   \n The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted by using the Group's incremental borrowing rate. \n   \n Lease payments included in the measurement of the lease liability comprise: \n ·      fixed lease payments (including in-substance fixed payments), less any lease incentives receivable; \n ·    variable lease payments that depend on an index or rate, initially measured using the index or rate at the commencement date; \n ·      the amount expected to be payable by the lessee under residual value guarantees; \n ·      the exercise price of purchase options if the lessee is reasonably certain to exercise the options; and \n ·      payments of penalties for terminating the lease, if the lease term reflects the exercise of an option to terminate the lease. \n   \n The lease liability is presented as a separate line in the Consolidated Statement of Financial Position. \n   \n The lease liability is subsequently measured by increasing the carrying amount to reflect interest on the lease liability (at a constant rate) and by reducing the carrying amount to reflect the lease payments made. \n   \n The Group remeasures the lease liability (and makes a corresponding adjustment to the related right-of-use asset) whenever: \n ·      The lease term has changed or there is a significant event or change in circumstances resulting in a change in the assessment of exercise of a purchase option, in which case the lease liability is remeasured by discounting the revised lease payments using a revised discount rate \n ·     The lease payments change due to changes in an index or rate or a change in expected payment under a guaranteed residual value, in which cases the lease liability is remeasured by discounting the revised lease payments using a revised discount rate (unless the lease payments change is due to a change in a floating interest rate, in which case a revised discount rate is used) \n ·      A lease contract is modified, and the lease modification is not accounted for as a separate lease, in which case the lease liability is remeasured based on the lease term of the modified lease by discounting the revised lease payments using a revised discount rate at the effective date of the modification \n   \n The Group did not make any such adjustments during the periods presented. \n   \n The right-of-use assets comprise the initial measurement of the corresponding lease liability, lease payments made at or before the commencement day, less any lease incentives received and any initial direct costs. They are subsequently measured at cost less accumulated depreciation and impairment losses. \n   \n Whenever the Group incurs an obligation for costs to dismantle and remove a leased asset, restore the site on which it is located or restore the underlying asset to the condition required by the terms and conditions of the lease, a provision is recognised and measured under IAS 37. To the extent that the costs relate to a right-of-use asset, the costs are included in the related right-of-use asset, unless those costs are incurred to produce inventories. \n   \n Right-of-use assets are depreciated over the shorter period of lease term and useful life of the right-of-use asset. Right-of-use assets currently in use are depreciated over 10 years, which is the term of the lease. \n   \n If a lease transfers ownership of the underlying asset or the cost of the right-of-use asset reflects that the Group expects to exercise a purchase option, the related right-of-use asset is depreciated over the useful life of the underlying asset. The depreciation starts at the commencement date of the lease. \n   \n The right-of-use assets are presented as a separate line in the consolidated statement of financial position. The Group applies IAS 36 to dete...

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