AIM-traded cake makers have not made for happy investments in recent months. But the woes of Patisserie Valerie (AIM: CAKE) shouldn’t necessarily deter investors from the entire sector. In June, Cake Box (AIM: CBOX) joined its, now suspended, peer on AIM and its share price has risen over two-thirds since then.
The first set of financial results from this healthier cake company (both in terms of its financial position and cake making abilities – no eggs are used in Cake Box’s products) helped to justify its strong start to life as a public company. Sales for the six months ending September 2018 rose 44% to £8.3m with 15 new franchise stores added in the period bringing the estate to 101 franchise stores at 30 September 2018. A further four stores have been opened since the period end. Ignoring the £599k of IPO costs, adjusted pre-tax profit rose 34% to £1.97m, representing a 24% margin.…
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