TIDMCBOX
RNS Number : 4073I
Cake Box Holdings PLC
26 November 2018
Cake Box Holdings plc
("Cake Box", "the Company" or "the Group")
Unaudited Half Year Results for the six months ended 30
September 2018
Maiden results announced with growth in sales, profits and
dividend
Cake Box Holdings plc, the specialist retailer of fresh cream
cakes, today announces its half year results for the six months
ended 30 September 2018.
Financial Highlights
Half year Half year Change
ended ended
30 September 30 September
18 17
------------- -------
Revenue GBP8.28m GBP5.75m +44%
------------- ------------- -------
Gross profit GBP3.67m GBP2.50m +47%
------------- ------------- -------
EBITDA* GBP2.18m GBP1.63m +34%
------------- ------------- -------
Pre-tax profit GBP1.37m GBP1.47m -7%
------------- ------------- -------
Adjusted Pre-tax profit** GBP1.97m GBP1.47m +34%
------------- ------------- -------
Net cash GBP2.40m GBP1.46m +64%
------------- ------------- -------
Earnings per share 2.85p 3.19p -11%
------------- ------------- -------
Adjusted Earnings per
share** 4.35p 3.19p +36%
------------- ------------- -------
Interim dividend declared 1.20p 1.03p +17%
------------- ------------- -------
* EBITDA is calculated as operating profit before
depreciation
**Calculated after adjusting for AIM listing costs of
GBP599k
-- Group revenue up 44.0% to GBP8.3m (H1 FY18: GBP5.8m)
-- Gross margin improved to 44.3% (H1 FY18: 43.4%)
-- Underling operating cash flow** of GBP1.62 million (H1 FY18: GBP1.33 million)
-- Strong balance sheet with GBP2.40 million cash (H1 FY18: GBP1.46 million)
Operational highlights
-- IPO on AIM successfully completed in June 2018
-- 15 new franchise stores added in the period (H1 FY18: 10 new stores)
-- 101 franchise stores in operation at 30 September 2018
-- Successful launch of new product ranges
Our Franchisee Store highlights
-- Franchisee total turnover up by 29% to GBP14.1 million (H1 FY18: GBP10.9 million)
-- Franchisee online sales up 86% to GBP1.99 million (H1 FY18: GBP1.07 million)
-- Like-for-like sales growth of 4.4% in franchise stores (H1 FY18: 9.0%)
Neil Sachdev, Non-executive Chairman commented:
"I am pleased to report a strong performance since our IPO on
AIM in the summer. These results reflect the robust growth
opportunity presented by our franchisee store roll-out strategy. I
look forward to further progress in the remainder of our financial
year. We celebrate 10 years of Cake Box with our staff and
franchisees in 2019."
Sukh Chamdal, Chief Executive Officer, added:
"It's very exciting to be announcing our first set of results as
a public company. The Cake Box brand has continued to go from
strength to strength and we have made good progress since
floatation with our strategic priorities of growing our store
estate, investing further in our new products and developing our
digital marketing.
Our performance during the first eight weeks of the second half
has been encouraging and we have already opened four new stores.
The Group is well placed for further progress and the Board remains
confident of another successful year of growth."
For further information, please contact:
Cake Box Holdings plc
Sukh Chamdal, CEO
Pardip Dass, CFO +44 (0) 20 8443 1113
Shore Capital (NOMAD and Broker)
Stephane Auton
Patrick Castle
James Thomas +44 (0) 20 7408 4090
MHP Communications (Financial PR)
Oliver Hughes
Simon Hockridge
Charlie Barker
Pete Lambie +44 (0) 20 3128 8570
Operational Review
Results overview
We have delivered a strong trading performance for the half
year, 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 average sales per store.
This has led to significant financial progress for the Group.
Revenue grew by 44% and underlying EBITDA rose by 34%, meaning that
adjusted profit before tax also increased by 34% to GBP1.9m, ahead
of our previous expectations. This was partly a result of an
increase in our gross margin to 44.3% (H1 FY18: 43.4%), driven by
better yield obtained from the new ovens which were installed
earlier this year.
These results demonstrate the continuing appeal of the Cake Box
brand and unique customer offer, combined with the financial
strength of the Group and the strong cash generative nature of our
business model. We have achieved impressive growth in revenues and
profits despite the hot weather which adversely impacted high
street footfall and therefore the like- for-like sales growth of
many stores during the summer months. Despite this impact, our
franchisees achieved like-for-like sales of +4.4% with franchisee
total turnover rising to GBP14.1m for the half year.
Store openings
15 new franchise stores were added during the period, bringing
the total number of stores to 101 at the half year end. Recent
store openings included Bletchley, Northampton and Derby. Our new
stores continue to deliver strong returns and we were particularly
pleased with our 100(th) store in Bletchley near Milton Keynes
which recorded the highest ever first week of sales for a new
store.
This performance further demonstrates our successful business
model through which new stores typically reach a break-even or
profitable contribution to the Group within the first day of trade.
We have a strong pipeline of new franchise stores for the second
half of the year and are on track to open a similar number to that
seen during the first half.
Online
During the year we saw strong growth in franchisee online sales
which were up 86% to GBP1.99 million (H1 FY18: GBP1.07 million).
Online sales are processed centrally through the Group's website
with orders fulfilled through our franchise estate. Franchise
revenue from online sales is included in franchisee turnover
totaling GBP14.1 million (H1 FY18: GBP10.9 million).
Products
We have successfully launched a number of new products to our
range during the period. Of these, the introduction of our caramel
and chocolate cheesecake products have been particularly
well-received by customers. These are individually and expertly
decorated by our in-store designers which create a real buzz with
our customers who are excited by our evolving product range.
New Warehouse
We hope to complete soon on an additional warehouse and
distribution Centre in the north of England which we anticipate
will be in operation in the first half of 2019. As well as acting
as a distribution centre, the intention would be to install some
sponge production capability at the new site which would enable us
to reduce our existing distribution costs and provide a back up to
our production facility in Enfield. It is expected that the entire
funding required for the new warehouse will be generated through
the sale of our investment property, which we hope to complete
during the next few months.
Balance Sheet and Cashflow
We have a strong balance sheet with GBP2.40 million cash as at
30 September 2018 (H1 FY18: GBP1.46 million).
Net cash as at 30 September 2018 was GBP0.8m (H1 FY18: Net debt
GBP0.4m).
Underlying operating cash flow for the period (excluding IPO
costs of GBP599k) was GBP1.62 million dup from GBP1.33 million in
the same period in 2017 despite early payment of 2017/18
corporation tax of GBP400k.
Dividend
As outlined at the time of IPO, the Company has adopted a
progressive dividend policy to reflect the cash flow generation and
earnings of the Group.
Today we are declaring an interim dividend of 1.2 pence per
share. The Company intends that the total dividend for the year
(and future years) will split by one third for the first six months
of the year to two thirds for the year end respectively. The
interim dividend will be paid on 20 December 2018 to those
shareholders on the register at the close of business on 7 December
2018. The ex-dividend date is therefore 6 December 2018.
Outlook
Our performance during the first eight weeks of the second half
has been encouraging and we have already opened four new stores.
The Group is well placed for further progress and the Board remains
confident of another successful year of growth.
Unaudited Consolidated Statement Of Comprehensive Income
For The Six Months Ended 30 September 2018
6 months to 6 months to 12 months to
30 September 30 September 31 March
2018 2017 2018
(unaudited) (unaudited) (audited)
Note GBP GBP GBP
Revenue 8,283,338 5,753,628 12,833,659
Cost of sales (4,616,474) (3,254,911) (7,263,209)
-------------- -------------- -------------
Gross profit 3,666,864 2,498,717 5,570,450
Administrative expenses (1,680,671) (1,087,629) (2,273,128)
Other operating income - 84,000 84,000
-------------- -------------- -------------
Operating profit 1,986,193 1,495,088 3,381,322
Exceptional items 5 (598,645) - -
Net finance costs (18,919) (22,879) (45,672)
-------------- -------------- -------------
Profit before income tax 1,368,629 1,472,209 3,335,650
Income tax expense (228,613) (208,032) (568,053)
-------------- -------------- -------------
PROFIT AFTER INCOME TAX 1,140,016 1,264,177 2,767,597
OTHER COMPREHENSIVE INCOME
FOR THE PERIOD
Movement of deferred tax on
the revaluation of tangible
fixed assets - 12,691 16,790
-------------- -------------- -------------
TOTAL COMPREHENSIVE PROFIT
FOR THE PERIOD 1,140,016 1,276,868 2,784,567
============== ============== =============
EARNINGS PER SHARE
Basic & diluted 6 2.85p 3.19p 6.96p
Unaudited Consolidated Statement Of Financial Position
As At 30 September 2018
30 September 30 September 31 March
2018 2017
(Unaudited) (Unaudited) 2018
(audited)
Note GBP GBP GBP
ASSETS
Non-current assets
Investment property 342,629 342,629 342,629
Property, plant and equipment 3,620,035 3,413,528 3,340,520
Trade and other receivables 130,112 281,565 259,459
------------- ------------- -----------
4,092,776 4,037,722 3,942,608
------------- ------------- -----------
Current assets
Inventories 800,866 663,524 709,212
Trade and other receivables 1,649,810 1,261,327 1,300,636
Cash and cash equivalents 2,401,318 1,459,918 2,505,657
4,851,994 3,384,769 4,515,505
------------- ------------- -----------
TOTAL ASSETS 8,944,770 7,422,491 8,458,113
============= ============= ===========
EQUITY AND LIABILITIES
Share capital and reserves
Issued share capital 6 400,000 160 160
Capital redemption reserve 40 40 40
Revaluation reserve 455,422 451,143 455,422
Retained earnings 4,385,512 3,223,742 4,205,336
------------- ------------- -----------
TOTAL EQUITY 5,240,974 3,675,085 4,660,958
------------- ------------- -----------
Current liabilities
Trade and other payables 1,646,620 1,239,790 1,493,348
Short-term borrowings 176,544 178,095 185,594
Current tax payable 339,591 500,243 519,523
------------- ------------- -----------
2,162,755 1,918,128 2,198,465
Non-current liabilities
Borrowings 1,399,728 1,667,099 1,457,377
Deferred tax liabilities 141,313 162,179 141,313
------------- ------------- -----------
1,541,041 1,829,278 1,598,690
TOTAL LIABILITES 3,703,796 3,747,406 3,797,155
------------- ------------- -----------
TOTAL EQUITY & LIABILITIES 8,944,770 7,422,491 8,458,113
============= ============= ===========
Unaudited Consolidated Statement Of Changes In Equity
For The Six Months Ended 30 September 2018
Share Capital Revaluation Retained Total
capital redemption reserve earnings
reserve
GBP GBP GBP GBP GBP
Balance at 1 April
2017 160 40 438,452 1,959,565 2,398,217
Total comprehensive
income - - - 1,264,177 1,264,177
Deferred tax on revalued
property, plant and
equipment - - 12,691 - 12,691
-------- ----------- ----------- --------- ---------
Balance at 30 September
2017 160 40 451,143 3,223,742 3,675,085
-------- ----------- ----------- --------- ---------
Total comprehensive
income - - - 1,503,420 1,503,420
Deferred tax on revalued
property, plant and
equipment - - 4,279 - 4,279
Dividends paid - - - (521,826) (521,826)
-------- ----------- ----------- --------- ---------
Balance at 31 March
2018 160 40 455,422 4,205,336 4,660,958
-------- ----------- ----------- --------- ---------
Total comprehensive
income - - - 1,140,016 1,140,016
Share bonus issue 399,840 - - (399,840) -
Dividends paid - - - (560,000) (560,000)
-------- ----------- ----------- --------- ---------
Balance at 30 September
2018 400,000 40 455,422 4,385,512 5,240,974
======== =========== =========== ========= =========
Unaudited Consolidated Cash Flow Statement
For The Six Months Ended 30 September 2018
6 months to 6 months to 12 months
to
30 September 30 September 31 March
2018 2017 2018
(unaudited) (unaudited) (audited)
GBP GBP GBP
Cash from operating activities:
Profit before income tax 1,368,629 1,472,209 3,335,650
Adjusted for:
Depreciation 198,381 132,796 318,548
Profit on Disposal - - (5,181)
(Increase)/ decrease in inventories (91,654) (108,126) (153,814)
(Increase)/ decrease in trade
and other receivables (220,134) (347,272) (364,269)
(Decrease)/ increase in trade
and other payables 153,579 167,291 402,110
Finance income (2,542) (51) (1,114)
------------------------- ------------------------- ----------------------
Cash generated by operations 1,406,259 1,316,847 3,531,930
Finance costs 21,461 22,930 46,786
Taxation paid (408,545) (5,214) (362,542)
Net cash inflow
from operating
activities 1,019,175 1,334,563 3,216,174
------------------------- ------------------------- ----------------------
Cash flows from investing activities
Sale of investment properties - - 190,000
Purchase of property, plant
and equipment (477,896) (233,124) (530,688)
Interest received 2,542 51 1,114
Net cash flows
used in
investing
activities (475,354) (233,073) (339,574)
------------------------- ------------------------- ----------------------
Cash flows from financing activities:
Repayment of borrowings (52,606) (61,716) (249,847)
Repayment of finance leases (14,093) (32,627) (28,185)
Dividends paid (560,000) - (521,826)
Interest paid (21,461) (22,930) (46,786)
------------------------- ------------------------- ----------------------
Net cash flows used in financing
activities (648,160) (117,273) (846,644)
Net (decrease)/increase in cash
and cash equivalents (104,339) 984,217 2,029,956
Cash and cash equivalents brought
forward 2,505,657 475,701 475,701
------------------------- ------------------------- ----------------------
Cash and cash equivalents carried
forward 2,401,318 1,459,918 2,505,657
========================= ========================= ======================
For the purposes of the cash flow statement, cash and cash
equivalents comprise the following:
Cash at bank and in hand 2,401,318 1,459,918 2,505,657
Bank overdraft - - -
2,401,318 1,459,918 2,505,657
============== ============ ==========
1. Notes to the Interim Report
Basis of preparation
The consolidated half-yearly financial statements, do not
constitute statutory accounts within the meaning of Section 434 of
the Companies Act 2006. The statutory accounts for the year ended
31 March 2018 have been filed with the Registrar of Companies at
Companies House. The auditor's report on the statutory accounts for
the year ended 31 March 2018 was unqualified and did not contain
any statements under Section 498 (2) or (3) of the Companies Act
2006.
The published financial statements for the year ended 31 March
2018 were prepared in accordance with UK GAAP Financial Reporting
Standard 102. The financial statements for the year ended 31 March
2018 were converted to International Financial Reporting Standards
as adopted for use in the EU ("IFRS") and this conversion of the
historical financial information was included in the AIM Admission
document. There was no material effect from conversion. The
comparative information for the year ended 31 March 2018 presented
in these half-year financial statements has been extracted from the
historical financial information, which was published in the AIM
admission document
The consolidated annual financial statements of Cake Box
Holdings Plc for the year ended 31 March 2019 will be prepared in
accordance with IFRS. Accordingly, these interim financial
statements have been prepared using accounting policies consistent
with those which will be adopted by the Group in the financial
statements for the year ended 31 March 2019 and which were used in
the preparation of the historic financial information for the year
ended 31 March 2018 included in the AIM admission document.
None of the standards, interpretations and amendments effective
for the first time from 1 January 2018, including IFRS 9 and IFRS
15, have had a material effect on the historical financial
information. None of the standards, interpretations and amendments
which are effective for periods beginning after 1 January 2019 and
which have not been adopted early, are expected to have a material
effect on the historical financial information.
The financial information contained in this interim report
should be read in conjunction with the historical financial
information included in the AIM Admission document.
On 27 June 2018, Cake Box Holdings Plc was admitted to the AIM
market of London Stock Exchange Plc.
The consolidated half-yearly financial statements for the six
months to 30 September 2018 have not been audited or reviewed by
auditors, pursuant to the Auditing Practices Board guidance on
Review of Interim Financial Information.
The consolidated half-yearly financial statements have been
prepared under the going concern assumption and historical cost
convention as modified by fair value for investment property and
property, plant and equipment.
Basis of consolidation
The Group consolidated half-yearly financial statements
consolidates the company and its subsidiaries. All intra-group
transactions, balances, income and expenses are eliminated on
consolidation.
2. Changes in accounting policies and disclosures
IFRS 15 'Revenue from Contracts with Customers'
The Group has applied this accounting standard from 1 April 2018
and has adopted the modified retrospective approach to its adoption
which would result in any adjustments for contracts in progress at
1 April 2018 being made to opening retained earnings at that
date.
The Group has considered how franchise fees are recognised in
accordance with IFRS 15 using the 5 step approach set out in that
standard. In undertaking this exercise the Group has not identified
any material changes in how revenue would be recognised for the
contracts in progress at 31 March 2018 nor with those that have
been undertaken in the six months to 30 September 2018.
IFRS 9 'Financial Instruments'
The Group has applied this standard from 1 January 2018 but it
has had no material effect on the Group's financial statements.
IFRS 16 'Leases'
The Group has considered how leases are accounted for in
accordance with IFRS 16 'Leases', including consideration of
transition method. The standard is expected to only affect the
Group in respect of leases that it has in place that are currently
treated as operating leases in accordance with current
standards.
The Group acts as a lessee and lessor but will not be required
to recognise operating leases on the balance sheet when the new
standard is implemented. The leases are expected to fall under the
definition of exemption criteria. Early adoption of this standard
has not been taken.
3. Segment reporting
Components reported to the chief operating decision maker, the
board of directors, are not separately identifiable. The group
makes varied sales to its customers but none are a separately
identifiable component. The following information is disclosed:
6 months 6 months to 12 months
to to
30 September 30 September 31 March
2018
(unaudited) 2017 2018
(unaudited) (audited)
GBP GBP GBP
Sale of goods 6,687,900 4,875,831 10,490,687
Sale of services 1,535,038 833,212 2,248,797
Rental of properties 60,400 44,585 94,175
--------------- --------------- -----------
8,283,338 5,753,628 12,833,659
--------------- --------------- -----------
4. Dividends
6 months 6 months 12 months to
to to 31 March
30 September 30 September 2018
2018 2017
(unaudited) (unaudited) (audited)
GBP GBP GBP
Dividends paid 560,000 - 521,826
============== ============== ===================
5. Exceptional items
6 months 6 months 12 months to
to to 31 March
30 September 30 September 2018
2018 2017
(unaudited) (unaudited) (audited)
GBP GBP GBP
AIM listing costs 598,645 - -
============== ============== ===================
6. Share Capital
6 months 6 months 12 months to
to to 31 March
30 September 30 September 2018
2018 2017
(unaudited) (unaudited) (audited)
GBP GBP GBP
40,000,000 Ordinary shares 400,000 - -
of GBP0.01 each
40,000,000 Ordinary shares
of GBP0.000004 each - 160 160
=============== ============== =============
On 4 June 2018 a bonus issue was made in the proportion of 2,500
shares for every 1 existing Ordinary share held. Immediately after
the bonus issue the 100 billion GBP0.000004 Ordinary shares in
issue were consolidated into 40,000,000 ordinary shares of GBP0.01
each. No amendment to the rights and restrictions as set out in the
Company's articles of association were made.
Earnings per share
The basic earnings per share is calculated by dividing the
earnings attributable to equity shareholders by the weighted
average number of shares in issue. In calculating the diluted
earnings per share, share options outstanding have been taken into
account where the impact of these is dilutive.
6 months 6 months 12 months to
to to 31 March
30 September 30 September 2018
2018 2017
(unaudited) (unaudited) (audited)
GBP GBP GBP
Basic earnings per share 2.85p 3.19p 6.96p
Diluted earnings per share 2.85p 3.19p 6.96p
-------------- -------------- -------------
Excluding exceptional AIM listing costs
Basic earnings per share 4.35p 3.19p 6.96p
Diluted earnings per share 4.35p 3.19p 6.96p
------ ------ ------
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END
IR LLFLFLFLEFIT
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