Cake Box – ‘new financial year has started positively’: Cake Box, the specialist retailer of fresh cream cakes, has said trading in the 2026 financial year “has started positively and in line with market expectations”, supported by continued momentum in franchise store performance and growing online sales. The company said the integration of Ambala Foods – the manufacturer and retailer of Asian sweets acquired in March – was progressing well and on track to achieve identified cost savings and efficiencies. The company stated: “Trading to date in the new financial year has been positive, with total franchise sales and like-for-like sales increasing compared with the same period in FY25, and the group is well positioned to meet market expectations for FY26. The integration of an improved digital infrastructure with the group’s growing high street estate positions Cake Box well for continued growth. Management believes the acquisition of Ambala strengthens the group’s position as a multi-brand, multi-channel food business with further potential to grow both organically and through carefully considered strategic opportunities.” It comes as the group reported revenue increased 13% to £42.78m for the year ending 30 March 2025 compared with £37.84m the previous year. Underlying Ebitda was up 17.1% to £8.73m from £7.46m while pre-tax profit was down 1.5% to £6.16m compared with £6.27m the year before. The total number of Cake Box franchise stores across the UK increased to 251 (2024: 225), with the group entering new locations such as Belfast, Hastings and Worthing. Franchisee total turnover increased 9.5% to £86.3m (2024: £78.8m). Like-for-like sales in franchise stores were up 3.0% (2024: 4.4%). Online sales grew 19.0% to £19.1m (2024: £16.1m) following increased investment in digital marketing and e-commerce capabilities. Chief executive Sukh Chamdal said: “In the past year, we achieved significant operational growth and are pleased to report growing sales and underlying Ebitda ahead of market expectations. This success was due to strong franchise store performance, expansion of our store network, and the effectiveness of our multi-channel sales strategy. Notably, we celebrated the opening of our 250th store in Hastings, progressing toward our target of 400 locations. Our strategic acquisition of Ambala Foods enhances our product portfolio and diversifies revenue streams, focusing on celebratory and indulgent treats. Ambala’s rich heritage and popular products align seamlessly with our brand, creating opportunities for synergies, accelerated organic growth in new regions and reaching new customers. Looking ahead, we have entered the new financial year with positive trading momentum and are making good progress in integrating Ambala. We remain dedicated to growth, innovation, and solidifying our position as the UK’s leading retailer of fresh cream celebration cakes.”