Updates

Cake Box

August 2022

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

The so-called “sin stocks” selling alcohol, tobacco, gambling and sugar tend to perform well in recessions so it’s no surprise to see Cake Box, a franchise retailer of egg-free fresh cream cakes, put out another set of strong results. In the year ended March ’22 it reported growth in sales and pretax profit of 51% and 49%, respectively, to £33m and £7.0m. Eps grew 42% to 13.8p while net cash increased from £5.2m to £6.6m.Another 31 outlets opened in FY’22 taking the total to 185, and in addition the Asda kiosks trial has now expanded to 15 stores while the total number of kiosks including supermarket kiosks stands at 35, up from 21. Gross margin declined 1.9% due to the increasing share of new store openings - 30% gross margi ...

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S4 Capital

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Cake Box - Rising sponge sales drives gross margin increase (August 2024)

Cake Box (June 2024)

Cake Box - Gross margin lifts sharply (January 2024)

Cake Box - Upgraded site target not reflected in lowly prospective PE of 11.2 and then 9.7 (December 2023)

Cake Box Like-for-like sales accelerate (October 2023)

Cake Box - Rejects bid approach (September 2023)

Cake Box - Cake shop franchise on the turn; PE less than half former peak (February 2023)

Cake Box (October 2022)

Cake Box - Strong pipeline of new opening (December 2021)

Cake Box - Liberum upgrades price target to 450p (November 2021)

Cake Box (August 2021)

Cake Box - Target price raised to 360p (June 2021)

Cake Box (December 2020)

Cake Box (November 2020)

Cake Box - Franchised cake shop business with plans to double estate to 250 stores (August 2020)

Cake Box - IPO spikes to large premium (August 2018)

With small companies there is an above average degree of risk compared to buying blue chips. Please be aware that we have not assessed the suitability of any of these investments for you. The newsletter simply states a personal view and diarises the editor’s investment decisions. Please speak to your stockbroker or other qualified individual to ascertain whether any of these companies mentioned would form useful additions to your own portfolios. Past performance is no indication of future success.

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