Final results presentation for the year ended 31 st March 2019 1 - PowerPoint PPT Presentation

Final results presentation for the year ended 31 st March 2019 1

Agenda 1 Introduction to Cake Box – Sukh Chamdal, CEO 2 Operational Highlights – Dr Jaswir Singh, COO 3 Financial Highlights – Pardip Dass, CFO 4 Summary and Outlook – Sukh Chamdal, CEO 2

Your presenters today Sukh Chamdal Pardip Dass Dr Jaswir Singh Chief Executive Officer Ch Ch Chief Financial Officer Ch Chief Operating Officer Opened the first Cake Box Co-founded the Cake Box Joined the business in 2010 as • • • concept store in 2008, co- franchise business in 2009 the Commercial Director founded the franchise business in 2009 • Qualified Accountant (10+ years • Qualified medical doctor PQE) 35+ years’ experience in the food Successfully ran his own • • manufacturing and food retail • 15+ years’ experience within the restaurant business for nine industry food and beverage industry years before joining Cake Box Consultant for a food equipment Previously worked for Starbucks, • • company specialising in high Masala Zone, Group Chez Proven management team volume food production Gerard Restaurants and Real supported by a highly Pubs where he was Finance • Previously owned a food catering Director experienced board company supplying vegetarian food for functions and events 3

Sukh Chamdal Chief Executive Officer 4

Introduction to Cake Box • Business conceived in 2008 with a single shop in East London, now headquartered in Enfield, Greater London • The Group has grown to an estate of 113 franchise stores as at 31 st March 2019 • Specialises in making delicious, high quality, bespoke celebration fresh cream cakes instore while customers wait • All cakes and slices are egg free • Personalisation offered even while you wait • One hour click and collect available for popular cakes • Strong growth profile, currently opening on average six new stores per quarter • Attractive proposition for franchisees with average EBITDA of c.£94k* per annum * Based on mature stores - “mature store” defined as store that has been open for 12 months or longer

Products Product range • Freshly hand-made cakes and slices in-store using fresh cream • Cakes available to order in-store or online for collection • Hundreds of celebration cake designs to choose from • Cakes can be personalised on the spot with a free message • Personalised photos printed on sugar paper can be added to any cake • Large range of cakes for immediate purchase from patisserie displays • Large selection of cake sizes ranging from 8 to 120 servings per cake • Individual hand made cake slices start from only £2.50 Ex Examples of product pricing Product Price Cake Slice serves 1-2 £2.50 Loaf Cake 420g serves 4-6 £4.99 Cheese Cake serves 8 £7.99 Fruit Gateaux serves 8 £19.99 Black Forest serves 8 £22.99 Platter Cake serves 64 £69.99 6

A rapidly growing portfolio of franchise stores The development of the Group’s Area Stores franchise estate from London within M25 38 31 st March 2010 to 31 st March 2019 South East 26 West Midlands 17 East Midlands 13 Yorkshire 10 North West 5 Scotland 1 North East 2 South West 1 Total 113

Dr.Jaswir Singh Chief Operations Officer 8

Operational highlights IPO 27 113 2 New TOTAL NUMBER OF ADDITIONAL 27th JUNE 2018 NEW STORES OPENED TRAINING CENTRE STORES WAREHOUSES ACQUIRED • IPO on AIM successfully completed in June 2018 • 27 new franchise stores added in the period (FY18: 23 new franchise stores) • 113 franchise stores operating by 31 st March 2019 • 100 th store in Bletchley - very successful opening • Bletchley store dedicated as Training Centre • Further R&D of new products • Acquired two new production and distribution centres in the Midlands and Yorkshire 9

Franchisee operational highlights 20 £30.7m £6.6k +6.5% £94k +58% RETAIL AVERAGE WEEKLY LIKE-FOR-LIKE AVERAGE STORE ONLINE SALES NUMBER OF MULTIPLE CAKE SALES SALES* GROWTH SALES GROWTH FRANCHISEES EBITDA* • Franchisee total turnover up by 18% to £30.7m (FY18: £25.9m) • Average franchise store sales £6.6k per week (FY18: £6.4k)* • Online sales up 58% to £4.39m (FY18: £2.78m) • Like-for-Like sales up +6.5% (H1 +4.4%, H2 +8.6%)** • 20 Franchisees now have more than one store • Franchisees earn an average of £94k EBITDA per annum per store* • Strong pipeline of potential new franchisees and existing ones looking for additional stores *Based on mature stores - “mature store” defined as store that has been open for 12 months or longer 1 0 ** Like-for-like: Stores trading for at least one full financial year prior to 31 March 2019

Pardip Dass Chief Financial Officer 1 1

Financial highlights £4.44m £16.9m £12.7m £3.70m FY18 FY19 FY18 FY19 REVENUE EBITDA* PROFIT BEFORE TAX* £16.9m £4.4m £4.0m +33% +20% +19% YEAR-ON-YEAR YEAR-ON-YEAR YEAR-ON-YEAR CASH AT BANK UNDERLYING EPS FINAL DIVIDEND £3.1m 7.90p 2.4p up £0.6m +14% +50% (2018: £2.5m) (2018: 6.92p) (2018: 1.6p) 1 2 *Excluding exceptional AIM IPO costs of £599k and fair value uplift of £444k

Group income statement 12 months to 12 months to 31 March 2019 31 March 2018 (audited) (audited) Notes £k £k Revenue Growth +33% Year-on-Year Revenue 16,909 12,739 Cost of sales (9,189) (7,263) Gross profit 7,720 5,476 Gross margin improved to 45.7% from 43.0% as a result of higher yields from new ovens Administrative expenses (3,742) (2,273) Fair Value Movement 444 0 Other operating income 28 195 Operating margin decreased from 2018 due to PLC costs in FY19 Operating profit 4,450 3,398 Exceptional items (599) - One off IPO costs of £599k Net finance costs (42) (45) Profit before tax 3,809 3,353 Corporation Tax (806) (568) PROFIT AFTER TAX 3,003 2,785 Underlying Profit +13% Year-on-Year EARNINGS PER SHARE Basic & diluted 7.51p 6.96p Adjusted 7.90p 6.96p 1 3

Group balance sheet 31-Mar-2019 31-Mar-2018 (audited) (audited) Notes ASSETS £k £k Non-current assets 5,101 3,943 Purchases of 2 New Freehold warehouses Inventories 910 709 Trade and other receivables 1,532 1,301 Assets held for sale 650 0 Romford Warehouse under sale Cash and cash equivalents 3,082 2,506 Net cash outflow of £750k relating to new warehouses Current assets 6,174 4,515 TOTAL ASSETS 11,275 8,458 Current liabilities (2,492) (2,199) Increase in Corporation Tax Non-current liabilities Borrowings (1,938) (1,457) £650k new Loan facility for new warhouses Deferred tax liabilities (222) (141) (2,160) (1,599) TOTAL ASSETS 6,623 4,661 Issued share capital 400 0 Revaluation reserve 821 455 Retained earnings 5,402 4,205 SHARE CAPITAL AND RESERVES 6,623 4,661 1 4

Group cash flow 31-Mar-2019 31-Mar-2018 (audited) (audited) Notes £k £k Cash from operating activities: Profit before income tax 3,809 3,336 Adjusted for: Depreciation 431 319 Other non Cash Items (641) (122) Cash generated by operations 3,598 3,532 Cash generation flat from 2018 due to PLC & IPO costs in FY19 Finance costs 49 47 Taxation paid (497) (363) Net cash inflow from operating activities 3,149 3,216 Net cash flows used in investing activities (1,991) (340) Purchases of two new freehold warehouses Cash flows from financing activities: Dividends paid (1,040) (522) Other 458 (325) New borrowings £650k Net cash flows used in financing activities (582) (847) Net (decrease)/increase in cash and cash equivalents 577 2,030 Cash and cash equivalents brought forward 2,506 476 Cash and cash equivalents carried forward 3,082 2,506 1 5

Current trading and outlook • Strong first full year results since IPO and the Board is pleased with trading so far in FY20 • 113 franchise stores in operation as at 31st March 2019 • 4 new franchise stores opened post period end with a further two expected by end of Q1, FY20 • Strong pipeline of new franchise stores and confident of delivery of our growth strategy of 6 new franchise stores a quarter (2 a month) • Further R&D in new products to continue First Year results • Keeping up with trends, vegan loaf cakes being recently launched announced with strong • The Board is confident about the new financial year growth in sales, profits and dividend 1 6

Appendix Our operations 1 7