Cake Box Holdings shares surge 5% on strong sales

Cake Box Holdings shares (LON: CBOX) jumped 5.45% on Monday morning as the group shared a trading update for the six months ended 30 September 2020.

The update included six-weeks when all stores had closed over lockdown, which impacted sales. Total sales over the six months dipped 2% to £8m.

In the 20 weeks to September 30, however, the group experienced strong trading with like-for-like sales increasing 12% and total sales rising 23% thanks to delivery platforms including Uber Eats.

Cake Box Holdings have opened six new stores bringing the total number of stores to 139.

Sukh Chamdal, co-founder and chief executive, said: “This result is testament to the dedication, agility and entrepreneurial spirit of the Cake Box family, particularly our franchisees and their employees.

“We continue to see strong momentum across the business both in store and online, with like-for-like sales of 12.1% since reopening the business. We have received a record number of new store applications, giving us confidence that the momentum in our national rollout will return to pre-COVID levels.

“Despite the wider environment, our unique proposition for customers and potential franchisees remains highly attractive and we are confident of further progress in the second half,” Chamdal added.

Cake Box Holdings shares (LON: CBOX) are trading +2.55% at 169.20 (0852GMT).

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Safiya focuses on business and political stories for UK Investor Magazine. Her interests include international development, travel and politics.