Despite a damp initial reception, the market took another helping of Patisserie's (CAKE) shares following news of a 29 per cent uplift in adjusted pre-tax profit for the year to September. That was despite a lower than expected 1.67p maiden dividend, covered a somewhat conservative five times by earnings. Store openings in the period also underwhelmed, totalling 18 - two short of the annual target.
Disappointment on the second count might seem an overreaction, considering that a further eight Patisserie Valerie outlets have launched since the year-end. Experiments with cafe formats - such as a pilot for concessions in Debenhams - have also proved successful and generate higher margins than high-street offerings, according to management.
Executive chairman Luke Johnson, who built the Pizza Express brand in the 1990s, believes Patisserie could eventually double its outlet-count from the existing 166. There are also plans to launch at least one more of the lucrative Baker & Spice outlets Patisserie owns in the coming months. Impressively, working capital discipline means this expansion is now being entirely funded by operating cash flows, which more than doubled to £18.3m in the year.
Analysts at Canaccord are expecting adjusted pre-tax profits of £17.2m and EPS of 13.7p in the year to September 2016, up from £14.6m and 11.3p in FY2016.
PATISSERIE HOLDINGS (CAKE) | ||||
|---|---|---|---|---|
| ORD PRICE: | 320p | MARKET VALUE: | £320m | |
| TOUCH: | 320-330p | 12-MONTH HIGH: | 355p | LOW: 200p |
| DIVIDEND YIELD: | 0.5% | PE RATIO: | 28 | |
| NET ASSET VALUE: | 67p* | NET CASH: | £6.1m | |
| Year to 30 Sep | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2011** | 40.5 | 4.9 | 242 | nil |
| 2012** | 49.5 | 6.2 | 326 | nil |
| 2013 | 60.1 | 8.2 | 8.9 | nil |
| 2014 | 76.6 | 10.4 | 10.4 | nil |
| 2015 | 91.9 | 14.6 | 11.4 | 1.67 |
| % change | +20 | +40 | +10 | - |
Ex-div: 13 Jan Payment: 12 Feb *Includes intangible assets of £18m, or 18p a share. **Pre-IPO figures. | ||||
