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(Sharecast News) - Cake Box flagged a "positive" start to the current financial year on Tuesday, sending shares higher, as it posted above-forecast annual numbers.
Revenues at the AIM-listed baker, known for its egg-free, fresh cream celebration cakes, rose 13% in the year to 30 March, to 42.8m. Earnings before interest, tax, depreciation and amortisation ticked 1.5% higher to 7.8m.
Once exceptional items were taken into account, pre-tax profits fell 1.8% to 6.2m. The one-off costs largely consisted of the fees associated with Cake Box's 22m acquisition of Asian sweet seller Ambala Foods in March.
Chief executive Sukh Chamdal said sales and earnings had benefited from a buoyant franchise store performance as well as the expansion of its own network.
Cake Box is currently targeting 400 locations, having opened its 250th store during the year.
He continued: "Our strategic acquisition of Ambala enhances our product portfolio and diversifies revenue streams, focusing on celebratory and indulgent treats.
"Looking ahead, we have entered the new financial year with positive trading momentum and are making good progress in integrating Ambala."
As at noon BST, shares in Cake Box were up 8% at 195p.
Darren Shirley, analyst at Shore Capital - where Cake Box is a house stock - said the numbers were "comfortably" ahead of its forecasts, for EBITDA of 8m and diluted earnings per share of 12p.
He added that the current year had "started well, with positive like-for-like sales and volumes across the estate and the Ambala integration well on track.
"We upgrade short and medium-term forecasts.
"We see a lot to like in Cake Box, with capital light growth supporting attractive cash generation and income credentials."
Shore Cap does not provide recommendations for house stocks.
Cake Box's results had been slated for publication in June. But the deadline was pushed back after its auditor asked for more time, in light of the Ambala deal.