Cake Box (CBOX) H2 2026 earnings summary

Executive summary

• Achieved record system sales of £111.3 million, up 27.7% year-over-year, with strong profit growth and continued store network expansion in FY 2026.

• Operates an asset-light, cash-generative franchise model with two complementary brands, Cake Box and Ambala, driving growth and diversification.

• Opened 37 new stores during the year, ending with 310 locations, and paid a dividend per share of 10.8p, up 5.9%.

• Ambala contributed £14.1 million in its first full year post-acquisition, supporting growth and diversification.

• Maintains a progressive dividend policy and disciplined reinvestment into growth.

Financial highlights

• Group revenue reached £59.7 million, up 39.5% year-over-year, with underlying EBITDA of £12.4 million, up 41.6%.

• Gross profit rose 52.6% to £34.3 million, with gross margin up 4.9 percentage points.

• Free cash flow generation of £9.5 million, up 34.7%, absorbed significant capex and Ambala interest.

• Dividend payout increased by £0.8 million to £4.6 million, with a 1.5x cover target.

• Net debt closed at £10.8 million, representing 0.9x EBITDA, a marginal improvement from 1.03x.

Outlook and guidance

• Trading in the new financial year started ahead of 2026, with strong momentum in system sales.

• Plans to continue opening 25 Cake Box stores and at least 10 Ambala stores annually, targeting 400 Cake Box and 100 Ambala stores in the UK, with ongoing international exploration.

• Targeting 35 new store openings in 2027, with continued LFL growth from digital marketing and product innovation.

• Focus remains on expanding the store network, digital innovation, and franchise performance.

• Dividend policy aims for a 1.5x cover, with ongoing debt reduction at £2 million per year.