The value of Cake Box Holdings shares nearly halved on Wednesday following a warning the company was facing a ‘challenging economic and trading environment’ that would squeeze margins.
The high levels of inflation seems to have claimed another victim in the operator of 220 outlets egg-free cake outlets across the UK.
The group said they were attempting to offset input cost increases by raising prices but said full year earnings would be below market expectations.
Despite the challenges of the immediate outlook, Cake Box maintained they had a strong balance sheet to see them through a period of softer economic conditions with a cash balance £6.7m, prior to paying the proposed dividend of £2.0m in September.
The company said they were looking to the future with a number of new outlet openings in the pipeline.