After >10 years at the helm, Cake Box (CBOX ) co-founder & CFO Pardip Dass has graciously chosen to stand down from the Board & pursue other interests. With accomplished finance professional David Forth (ex AB Sugar & ACA) taking on the interim CFO role until a permanent replacement is found.
Additionally to support the company’s growth strategy, the leadership team is being expanded with the creation of 2 new roles.
Richard Zivkovic will join on 12th June as COO (ex Island Poke) alongside Chay Watkins as Marketing Director - both working closely with Co-founder/CEO Sukh Chamdal (stake 24.5%).
Plus, Pardip Dass is still very optimistic about CBOX's future. Indeed he plans to remain a shareholder (5.9% stake) & assist with the handover.
Adding ”I am extremely proud of what we have achieved at Cake Box, from first beginning to franchise the business model, to listing the business on AIM. I remain passionate about Cake Box, a supportive shareholder, and wish my colleagues all the very best for the future."
Elsewhere, “trading has continued strongly throughout H2’22, and the Board expects FY’22 results for the y/e March to be in line with expectations”. Here house broker Shore Capital are forecasting £30.6m sales, £7.8m EBITDA, 14.7p adjusted EPS & £7.0 net cash.
Whilst newly appointed internal auditors BDO are assisting the group in strengthening its control framework (eg Inventory Management).
In terms of intrinsic worth, I would conservatively value the stock on a modest 12x-15x forward EV/EBITDA multiple (FY’23 £8.6m).
Thus delivering a theoretical valuation range of between 275p-340p/share, & highlighting the potential upside for long term investors.