Shares in Patisserie Holdings (CAKE) - owner of the Patisserie Valerie café chain – held steady on the release of these half-year numbers. Revenues grew steadily in the wake of 10 new store openings (three more are expected by the end of this month), while the impressive gross margin was stable at 77.8 per cent, as the group switched certain suppliers to offset inflationary pressures. The end result was a double-digit earnings boost.
Chief executive Paul May said the financial year got off to good start, with a positive response to festive ranges in the run up to Christmas and through to Easter. Recent trading conditions have been more challenging, but management cites "the group’s vertically integrated supply chain", as a reason why the impact on profitability has been limited, ergo "better flexibility".
Analysts at Investec expect pre-tax profits of £22.6m for the year ending September 2018, giving EPS of 18.1p, compared to £20.2m and 16.2p in FY2017.
| PATISSERIE HOLDINGS (CAKE) | ||||
| ORD PRICE: | 433p | MARKET VALUE: | £441m | |
| TOUCH: | 432-433p | 12-MONTH HIGH: | 444p | LOW: 295p |
| DIVIDEND YIELD: | 0.6% | PE RATIO: | 25 | |
| NET ASSET VALUE: | 100p | NET CASH: | £28.8m | |
| Half-year to 31 Mar | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
| 2017 | 55.5 | 9.7 | 8.0 | 1.20 |
| 2018 | 60.5 | 11.1 | 9.0 | 1.44 |
| % change | +9 | +14 | +13 | +20 |
| Ex-div: | 31 May | |||
| Payment: | 13 Jul |
