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Cake Box Holdings PLC on Wednesday said the integration of Ambala is progressing well as it reported strong half-year sales growth. The Enfield, Middlesex-based retailer of fresh cream celebration cakes said pretax profit fell 7.4% to £2.6 million in the 26 weeks to September 28 from £2.8 million the year prior, despite a 54% jump in revenue to £28.8 million from £18.7 million. The profit fall reflects increased interest costs and more shares in issue following the equity raise in March, the firm explained. Basic earnings per share declined 15% to 4.40 pence from 5.18p. Earnings before interest, tax, depreciation and amortisation rose 31% to £4.5 million from £3.5 million or by 33% on an underlying basis to £4.6 million from £3.5 million. The firm reported ‘significant’ organic growth with Cake Box revenue up by 19% to £22.3 million from £18.7 million, while Ambala contribution was in line with expectations with revenue of £6.5 million. Cake Box completed the £22 million acquisition of Asian sweet manufacturer Ambala Foods in March. The integration of Ambala continues to progress well, Cake Box said, will higher sales and profit expected in the second half of the financial year. Nine new Cake Box stores were opened during the period taking stores to 284 at September 28, with another four opened post period end. In addition, two new Ambala franchisee owned stores opened during the period, bringing the total number of Ambala stores to 24. Significant growth was seen across all digital offering key performance indicators with 2.6 million website visits for the half year, up 18% year on year, and a 29% increase in the subscription database to 990,000, since the start of the financial year. Online sales increased 26% year on year, with 134,000 new customers online. Cake Box expects another year of growth in line with market expectations despite the challenging consumer environment. Second half revenue and profit are expected to be higher than the first half, in line with normal seasonal trading patterns, resulting from a ‘strong start to trading in the second half, important celebration events to come, new store openings and the continued digital growth.’ The dividend was raised 5.9% to 3.60p per share from 3.40p. Shares in Cake Box were down 1.4% at 207.00p each in London on Wednesday. Copyright 2025 Alliance News Ltd. All Rights Reserved.
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