Franchise cake retailer Cake Box announced its plan to float on London’s junior market today, with a £43m valuation.
The 91-strong chain sells egg-free cakes, with options for personalised messages and pictures.
It expects its admission to the alternative investments market (AIM) to take place next Wednesday.
The group has grown from 20 franchise stores to 91 in just five years, and the directors expect the growth rate of two new stores per month to continue after the listing. The current target is to have 250 franchise stores in the UK.
“With no direct national competitor for egg-free, fresh cream, personalised cakes, Cake Box is well positioned to continue to expand its slice of the sizeable UK cake market both in stores and online,” commented chief executive Sukh Chamdal.
The first store was opened in Forest Gate, East London in 2008 by Chamdal.
Its initial success was partly down to its ability to offer products to an underserved market. This includes people who do not eat eggs for religious reasons, such as some Hindus.
But the company said it now appeals to a wider range of people, reducing its reliance on a small customer base.
Source: City A.M.