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London-founded bakery Cake Box put its struggling rival Patisserie Valerie in the shade on Monday, after it revealed a profits upgrade.

The firm showed that not all cakes businesses are having a tough time of it — unlike its better-known rival which has suspended shares in the wake of an accounting scandal.

Cake Box boss Sukh Chamdal said he was “really happy” that a rescue deal was agreed for Patisserie Valerie, but was even more upbeat as he updated on his firm’s first-half performance.

Related: Cake Box sales grow as retailer surpasses 100 stores

The retailer, which has 102 branches, expects sales to increase 40% to £8.3 million and profits to come in ahead of the £3.7 million analysts had pencilled in.

Shares in the firm rose 12.5p, or more than 7%, to 176p. It floated at 108p per share in June.

Chamdal said: “We look forward to the second half of the financial year with confidence, with a strong pipeline of new franchise stores.”

Source: Standard

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