Cake Box Holdings PLC (LON: CBOX) have seen their shares spike on Monday after the firm increased its interim dividend.
Cake Box operate in a niche market which supplies both fresh and egg free cream cakes for all occasions. The firm has hit the ground running following societal trends of increased vegetarian and vegan eating habits.
Shares of Cake Box spiked 5.9% on Monday to 147p. 25/11/19 11:15BST.
Cake Box increased its interim dividend by 33% following positive progress in their interim update.
In June, the firm reported strong profit gains following the opening of new stores across the country, and the interim figures will only put icing on the cake.
Cake Box is returning 1.6p per share for the six months to September 30, up 33% from the 1.2p paid a year before, with cash generation remaining “strong”.
The company’s pretax profit rose 27% to £1.7 million with revenue climbing by 6% to £8.8 million.
Like-for-like sales growth was 6.9%, rising from 4.4% for the same period a year before.
“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,” said Chief Executive Sukh Chamdal.
“Our continued momentum has again led to a good financial performance during the half.”
Nine stores were added to the portfolio during the half, and more will come in the second half of its year.
Since the half’s end trading has been “encouraging”, Cake Box continued, and the company said it is on track for “another” year of growth.
Chamdal added: “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.”
Shareholders of Cake Box will be thoroughly pleased with the update and should be looking forward to strong trading figures in the next update.
In the market, competitors such as Finsbury Foods (LON: FIF) and Coca Cola (LON: CCH) have seen their sales increase in their most recent update.
Additionally, big time rival Greggs (LON: GRG) reported strong trading figures a week ago, which causes shares to rally.
