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Cake Box Holding (CAKE), the specialist retailer of fresh cream cakes, saw revenues rise 6% in the first six months of the year on the back of new store openings and increased demand.
Sales in the six months ended 30 September rose to £8.8m from £8.3m in the comparative period a year ago.
Meanwhile, like-for-like sales at its franchise stores were up 6.9% with franchisee total turnover rising 26% to £17.8m.
The retailer currently operates 122 franchise stores, of which nine were opened in the period. It said it is ”on track” to meet its full-year store opening target.
Pre-tax profits surged 27% in the half to £1.7m, while gross margins improved to 45% from 44.3% last year.
CEO Sukh Chamdal said: “During the period our focus has been on the consolidation of our strategy as we continue to grow the business through rolling out new stores, improving our customer offer and expanding our customer base, which is attracted to our unique, egg-free proposition. Our continued momentum has again led to a good financial performance during the half.
“Trading during the first eight weeks of the second half has been encouraging and we have already opened five new stores, including our first in Wales.
“With initiatives continuing apace to enhance our product offer, and with strengthened operational capabilities through our new warehouse and distribution facilities, we remain on track for another year of growth.”
Cake Box Holdings shares were trading 3.4% higher at 143.75p.
Morning update
In a further development to the Just Eat (JE) merger saga, the delivery firm has published a response letter to the unsolicited offer received by South African firm Prosus at the end of October.
In the letter from Just Eat chairman Mike Evans to shareholders, the company reiterated its intention to proceed with the Takeaway.com merger.
“It is your board’s view that this [the Prosus offer] significantly undervalues Just Eat both on a standalone basis and as part of the proposed recommended all-share combination with Takeaway.com,” The letter reads.
The Just Eat board continued to unanimously urge shareholders to take no action in relation to the Prosus offer.
Noting the Just Eat letter, Takeaway.com CEO Jitse Groen said he remained “strongly committed to the merger”.
Just Eat shares opened 0.2% higher trading at 754.60p.
Shopping centres owner and operator Intu Properties (INTU) has announced it exchanged contracts for the sale of Sprucefield Retail Park in Northern Ireland to NewRiver REIT for £40m.
The 231k square feet retail park comprises five units, anchored by Sainsbury’s and B&Q.
Intu shares opened down 0.5% trading at 38.51p.
Sativa Group (SATI), the quoted UK CBD wellness and medicinal cannabis group, is mulling its admission to trading on AIM after demand for its products surged.
The company said it was keen to pursue the listing “as soon as practicable” in the new year.
Furthermore, Sativa said that, five weeks after receiving the Home Office licence for the cultivation of cannabis plants with THC content of greater than 0.2%, the first batch of seedlings “were thriving”.
The seedlings were now being prepared to be moved to the cultivation room, with the first extract of medicinal cannabis oil to be delivered to Kings’ College London in December.
CEO Henry Lees-Buckley said: “We consider the Sativa Group to be at the forefront of the UK CBD and medicinal cannabis sector and we intend to maintain that position by keeping to the regulatory and compliance high-road.”
The FTSE 100 opened in the green, up 0.5% to 7,366.37pts.
Risers included Tesco (TSCO) up 1.1% at 235.10p, Marks & Spencer (MKS) up 1.6% at 195p and Fevertree (FEVR) up 1.1% at 2,118p.
Fallers saw Greggs (GRG) open down 0.6% at 2,038p, Imperial Brands (IMB) down 0.6% at 1,680 and Coca-Cola HBC (CCH) down 0.6% at 2,470p.
This week in the City
Earnings pick-up this week with updates from Greencore (GNC), releasing its full year results, and Cranswick (CWK) with its interims on Tuesday.
Wednesday sees the publication of Britvic (BVIC) and Marston’s (MARS) annual results as well as a trading update from British American Tobacco (BATS).
On Thursday, Greene King (GNK) will release its annual results alongside those of French group Rémy Cointreau, while Friday McColl’s (MCLS) will publish a full-year trading update.
The monthly GFK Consumer Confidence figures will also be published on Friday.
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