Updates

Cake Box - Gross margin lifts sharply

January 2024

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.

Following last month’s nicely timed buy note, the shares rallied after well received H1 results. Franchise store sales rose 12.9% to £36.1m, helped by a 15% jump in franchise online to £7.7m following the launch of a new CRM system in May and website in June. That led to EBITDA growing 10.4%. Impressively, gross margins jumped from 47.7% to 49.6% due to the partial easing of input cost increases, enhanced efficiency savings from the distribution centres and a near 20% increase in higher margin sponge sales. Cash rose 30% to £7.1m after paying out £2.2m in dividends. The number of franchised stores increased from 196 to 214 while the pipeline is strong with 44 deposits held at the period end. The shares remain ...

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Ten Entertainment

TMI Trader Portfolio - January '24

Cake Box - New openings ahead of schedule (January 2025)

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

Cake Box (June 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 (August 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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