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Authoritative Independent Monthly Share Selections Using Technical & Fundamental Analysis

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Patisserie Holdings - Excellent maiden results

February 2015

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.

  • Epic Code:
  • CAKE
  • Price:
  • 259p
Maiden results were enough to send the shares spectacularly higher. The group, which owns the part patisserie, part cafe Patisserie Valerie brand, increased revenues, pretax profit and eps 28%, 37% and 29% respectively to £76.5m, £11.3m and 11.4p. A better than expected operating margin of 15.8% (2013: 14.6%) was offset by sales, which were 5% lower than expected.The group opened 19 new Patisserie Valeries, just shy of its 20-a-year target, comprising a mix of high street and shopping centre outlets, but has already opened three more in the current year. Revenues on this side increased 20% to £51.1m while sales from its two supporting brands, Druckers (a Vienna patisserie with 22 sites) and Baker & Spice (a de ...

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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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