Underlying trading strength pays dividends
Cake Box has started FY2021 positively with strong same store sales growth, new store openings and an excellent online performance. The company is not only able to repay its furlough monies, but also reward shareholders with a special dividend. Cake Box released a trading statement as such this morning.Based on the company’s resumption of guidance, the valuation looks attractive enough to argue for investors to support what is clearly not only a robust growth story, but also one based on a strong financial model. We see a good argument for the shares to move to a premium valuation relative to its peer group and thus a share price above 200p seems perfectly reasonable in our view.
Cake Box Holdings PLC. Cake Box Holdings PLC is a United Kingdom-based franchise retailer and manufacturer of cakes. The Company operates its retail stores under the name Egg free Cake Box. It manufactures and sells personalized fresh cream and egg free cakes. The Company offers a range of cakes that include cup cakes, photo cakes, number cakes, fruit cakes, mendhi cakes, round cakes, kid's cakes, platter cakes, and wedding cakes. It provides customized cakes for purchase on demand or ordered advance in store or online through https://www.eggfreecake.co.uk/. The Company operates over 110 franchise stores in the United Kingdom.
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