Cake Box Holdings plc (LSE:CBOX) posted strong interim results, reporting a 53.5% rise in revenue to £28.8 million, supported by solid organic growth and the contribution from its Ambala Foods acquisition. Although profit before tax edged lower due to higher interest expenses, the company achieved notable gains in its digital channels, with online sales now making up a quarter of franchise store turnover. Expansion also continued at pace, with nine new Cake Box sites and two additional Ambala stores opening during the period. Management remains upbeat on second-half performance, underpinned by early trading strength and ongoing strategic investment.
The company’s outlook is largely shaped by positive technical indicators, though overbought conditions call for some caution. Financial results remain healthy overall, but improvements in operational efficiency and cash flow would bolster performance further. Valuation appears somewhat stretched, offset by the appeal of a strong dividend yield.
More about Cake Box Holdings
Cake Box Holdings plc is the UK’s leading retailer of fresh cream celebration cakes. The business operates through a nationwide franchise network and recently expanded its product and market reach with the acquisition of Ambala Foods Limited.
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