Patisserie Holdings (AIM:CAKE): delicious results but is all the good news baked into the price
The branded café and casual dining group, whose brands include Patisserie Valerie (cafés and cakes), Druckers – Vienna Patisserie, Philpotts, Baker & Spice (expensive…but great cakes!) and Flour Power City (organic bakery) has delivered wonderful results for the six months ended 31 March 2016. We question if the shares can move materially higher from these heady levels.
Revenue for the period was up 14.4% to £50.0m, pre-tax profit up 20.6% to £8.4m, and diluted earnings per share up a whopping 21.1% to 6.61p. It’s a delightful concept with 12 new stores being opened in the period all funded from operating cash flow and the store estate growing to 177. The location of the new openings is interesting and included one motorway service station, two brasseries, two shopping centres, one new store in Scotland and three concession stores in Debenhams. It will be interesting to see how they perform relative to more mature stores. The shares trade at…