The price of shares in AIM-listed baker Cake Box Holdings (LON:CBOX) rose by 10.62% to 125p (as of 11:50 BST) after the company updated markets regarding the year ended 31st March. Overall revenues for the year are expected to be roughly 10% higher than the prior period. However, the group has seen a drop in sales during the COVID-19 crisis, as it closed all its stores in March.
CEO Sukh Chamdal commented: “Our first priority remains the health, safety and wellbeing of our colleagues, franchisees, customers and the communities in which we operate across the country. Whilst this is an uncertain and difficult time for the country, we are incredibly proud of the efforts of our franchisees who have been sending thousands of our cakes to front line workers to give them a slice of comfort during these challenging times.
“Whilst the current closure of our franchise stores has and will continue to have an impact on performance, we are confident that our unique customer offer will continue to resonate over the long term. Life is somewhat on hold for now, but when we emerge from this we will still have birthdays, marriages and numerous other occasions small and large to celebrate up and down the country.
“We’re equally confident that our proposition to potential franchisees remains attractive. We have a strong pipeline in place to help continue to grow the Cake Box family and are developing new, innovative ways to work with our existing partners, including the expanded trial of our shopping centre kiosks. With our strong balance sheet, the actions we are taking to reduce costs and our resilient business model, we remain confident in the Group’s future prospects“.