Patisserie Holdings

Patisserie Holdings (CAKE)

Patisserie Holdings on the Web and Social Media

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Patisserie Holdings page on Interactive Investor
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Patisserie Holdings page on ADVFN
Patisserie Holdings page on London South East
Patisserie Holdings page on Bloomberg Markets
Patisserie Holdings page on This is Money
Patisserie Holdings page on Motley Fool
Patisserie Holdings page on Proactive Investors
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Patisserie Holdings Socially Speaking

Patisserie Holdings RNS, News and Media

Headline

7 Feb 2018
Patisserie Hldgs PLC - Director/PDMR Shareholdingfrom Interactive Investor
5 Feb 2018
Patisserie Hldgs PLC - Holding(s) in Companyfrom Interactive Investor
2 Feb 2018
Patisserie Hldgs PLC - Director/PDMR Shareholdingfrom Interactive Investor
2 Feb 2018
Patisserie Hldgs PLC - Director/PDMR Shareholdingfrom Interactive Investor
30 Jan 2018
Patisserie Hldgs PLC - AGM Statementfrom Interactive Investor
22 Dec 2017
Patisserie Hldgs PLC - AGM Statementfrom Interactive Investor
27 Nov 2017
Patisserie Hldgs PLC - Preliminary results 12 months ended 30 Sept 2017from Interactive Investor
27 Nov 2017
News - Patisserie Holdings upbeat as cost pressures ease from Proactive Investors
18 May 2016
News - Patisserie Holdings bolstered by new store openings from Proactive Investors
20 May 2015
News - Patisserie Holdings serves up tasty first half numbers from Proactive Investors
14 May 2014
News - Patisserie Holdings rises as City grabs a piece of CAKE from Proactive Investors
23 Apr 2014
News - Cafe chain Patisserie Holdings the latest to join flotation queue from Proactive Investors

Patisserie Holdings Charted

Patisserie Holdings Discussion on Interactive Investor

Re: rights issue ahead by dontlikenicknames

  Wed, 03 Jan 2018 15:47:00 GMT
more cake and i can eat it.
been in since float and regularly visit premier site in old compton st.
area used to be very seedy and full of tarts of the other kind.
By dontlikenicknames

rights issue ahead by give the dog a bone

  Tue, 02 Jan 2018 18:29:00 GMT
nothing like a well flagged rights issue ahead

generally when there is a rights issue pending, the share price tumbles so that the new shares will be priced keenly. but perversely the price soars.

feels like a bit of ramping going on here IMHO , eh Luke? good to see a 5% rise - this means the new shares won't need to be discounted as much


By give the dog a bone

CAKE.............UPGRADED........ by oldjoe1

  Tue, 02 Jan 2018 09:11:00 GMT
AN UPGRADE FOR CAKE..

Patisserie Holdings Plc CAKE Peel Hunt Buy355.50 353.25 425.00 450.00 Upgrades

SP target 450p...think ill add a few, somebody knows something.
By oldjoe1

Preparing to tap shareholders by IOMINVESTCOM

  Tue, 02 Jan 2018 07:31:00 GMT
I do not subscribe to the Times but here is some info - Maybe others that do can post full article :-



Patisserie Holdings, the owner of Patisserie Valerie, is preparing to tap shareholders in a move to buy the company behind the Gail’s Bakery chain.

Patisserie, which two months ago revealed it was interested in the 40-shop business, is drawing up plans for a £35 million placing, Sky News reported.

Luke Johnson, chairman of Patisserie, is also a shareholder in Gail’s parent Bread Holdings, so is standing back from negotiations.

Bread is valued at around £150 million. Its sales rose by £15 million to £79 million in the year to February.

Patisserie floated at 170p in 2014 and its shares were last trading at 353p, giving it a market value of just over £350 million.

By IOMINVESTCOM

Re: big jump today by Why nicknames

  Tue, 19 Dec 2017 17:01:00 GMT
We have 2 in Liverpool and they are always busy when I walk past them?
By Why nicknames

big jump today by give the dog a bone

  Tue, 19 Dec 2017 12:18:00 GMT
not sure why.

I visited their store in Canterbury and Chichester recently and both were sadly less than busy ...

thought the prices on the high side so holding off rebuying back into the stock
By give the dog a bone

Stockopedia view by IOMINVESTCOM

  Tue, 28 Nov 2017 05:49:00 GMT
Patisserie Holdings (LON:CAKE)
Share price: 340p (+8%)
No. of shares: 100 million
Market cap: £340 million
Preliminary results

This is a chain of cafés offering handmade cakes and ice creams, rolling out at a solid pace.

Results are solid, and kudos to the company for quickly showing the statutory pre-tax profit. Not needing or wanting to make any adjustments, even if adjustments are often justified, is a great sign:

5a1c45bee5729CAKE_20171127.PNG



Note there is a small dividend attached to these shares. The next final dividend is 2.4p, so the total dividend for the year is 3.6p.

A profitable, self-funding roll-out is a fantastic place to be when it goes right. On an after-tax basis, Patisserie Holdings (LON:CAKE) generated £20.4 million in cash from operations, of which it only needed to plough £8.7 million into capex. Given the growth profile, I guess that most of this is growth-oriented capex.

Last year, it also had a very positive free cash flow profile, generating £18.6 million in cash from operations after tax, and again investing only £8.7 million of that. So the net cash position has improved dramatically over the last couple of years.

The company's main bakery is in Birmingham, and it is thinking about a new one in Manchester. That would make for considerable increase in capex in the short-term, but hopefully would generate similar returns to that which the company is currently achieving on its capital:

5a1c480206819CAKE_20171127_Quality.PNG

My opinion

This is one where I haven't spotted any red flags yet. The plan is to open 20 new stores per year, which will of course mean that the percentage growth rate will decline over time if it is achieved, but would still be a highly satisfactory outcome from an investment point of view.

At some point it will have to run out of road, but for now the runway sounds like it can last into the medium-term at least:

We continue to target new towns and cities for store openings and in the year opened in twelve new geographical locations. Many of these stores are performing ahead of expectations and reinforces the demand for the Patisserie Valerie brand.
Due to the highly cash generative nature of the business, the rollout programme is funded entirely from operating cash flows. All of our new stores were profitable from the first week of trading and we expect all of these stores to achieve the payback target of 24 months.
As you might expect, the shares are not cheap, at 20x the net income just achieved, and c. 18x on a forward basis.

But I can't imagine that will seem expensive in a few years if it executes its plans. So I'm putting Patisserie Holdings (LON:CAKE) on my watchlist for a potential purchase.

LINK
By IOMINVESTCOM

CAKE Technically Strong Update 27th Nov by oldjoe1

  Wed, 01 Nov 2017 15:55:00 GMT
CAKE, Patisserie holdings, riding along and upwards on the 200 Day EMA EPS forecast for 15.9% rise and a P/E of 18.3 for 2018, update 27th NOVEMBER

https://pbs.twimg.com/media/DNjttkyWsAYs_eh.jpg
By oldjoe1

NEW ARTICLE: Stockwatch: A "speculative buy" yielding 8%-plus by II Editor

  Tue, 17 Oct 2017 08:59:00 GMT
"Can LSE:EHG:Elegant Hotels' valuation criteria coincide with a fundamentally sound business?At 87p, the Barbados-based luxury hotel owner/operator trades on a whopping 50% discount to intrinsic net asset value, a prospective yield over 8% and a ..."

LINK
By II Editor

Re: Paul Scott view by Dogberto

  Tue, 06 Jun 2017 18:24:00 GMT
8% down because a bloke on a blog has had a couple of disappointing store visits? Absolute joke of a market reaction.
By Dogberto

Paul Scott view by glasgowboy

  Tue, 06 Jun 2017 14:14:00 GMT
Yes its possible as there seems to be no market news on the company , although I did not think he has that much influence on the share price it would appear I was wrong. FWIW I am holding although I do respect Paul's opinion
By glasgowboy

Re: Paul Scott view by Broncomaniac

  Tue, 06 Jun 2017 13:59:00 GMT
Is today's plunge just due to these comments from Paul Scott?
By Broncomaniac

Paul Scott view by glasgowboy

  Tue, 06 Jun 2017 13:49:00 GMT
For that reason, I've ditched most of my shares in other hospitality, or retail shares. In the case of Patisserie Holdings (LON:CAKE) I've had a couple of disappointing store visits, and feel the valuation is probably now high enough. It's managed to mitigate cost increases so far, but will that continue? Customer service standards slip if staffing is reduced. The figures look great for this company, but can it maintain such a high operating profit margin? I'm not sure it should try to - because if the operating margin is too high, then customers might become disillusioned with the poor value for money, and decline to visit in future.
By glasgowboy

Paul Scott's view by IOMINVESTCOM

  Thu, 18 May 2017 13:09:00 GMT
My opinion - you may have guessed by now that I like these figures! This company really is a class act. Luke Johnson owns 38.6% of the company, so I'm very happy to be riding on the coat tails of this very experienced & highly regarded entrepreneur.

Hospitality is cooling as a sector at the moment. This is due to problems with rising costs, and over-capacity. Several companies in the sector have reported a decline in profits, and slowing or halting expansion plans.

As always, the best companies sail through troubled waters, taking the problems in their stride. That's exactly what's happening here. Cost pressures have been mitigated, it's just a really well-run business, with an excellent format.

I like the comments about expansion overseas now being considered.

Eventually, I reckon this company is likely to be sold, for a decent premium. This is alluded to by several brokers today.



EDIT: Many thanks to one of our star members, Bestace, who has flagged up a results presentation on CAKE's website. Well worth a read - it's here.

LINK
By IOMINVESTCOM

Beaufort Sec view by IOMINVESTCOM

  Thu, 18 May 2017 07:55:00 GMT
Our view: Patisserie continue to deliver strong results. Although the gross margin has dipped slightly from 78.3% a year ago to 78.0% due to high inflationary pressures on food costs, EBITDA margin has improved from 21.1% to 22.0%. This resulted pre-tax profit and EBITDA grew faster than the revenue growth, therefore led to earnings per share enhancement and ability for +20% hike in interim dividend, in line with its progressive dividend policy. The Group opened second store in Northern Ireland and first international store in the Republic of Ireland, which is highly encouraging as the success of these can lead towards accelerated store expansion plan internationally. The Group has noted that its Republic of Ireland store is performing well. Looking ahead, the Group said post period trading has been good and is remain on track to open 10 additional new stores this year, while retaining rich pipeline of further new sites. In terms of costs, the management noted that prices of majority of core ingredients post the period has now stabilised at normalised levels. Other costs such as rent and the Business Rates have relatively benign effect, while National Minimum and National Living Wage increases implemented in April 2017 and the next stage of the National Living Wage increase will add c.£0.5m on cost. The Group is continuing to mitigate these impact through more effective labour rostering method and other areas of scale benefits. Together with further supply chain improvements and operational gearing from the growing group, the management expect broadly flat gross margin in FY2017. Although concerns over wage pressure and ingredient price inflation persists, given its track-record of growth, management confidence as well as strong balance sheet, growth momentum is ongoing. The shares are valued at FY2017E and FY2018E P/E multiples of 21.5x and 18.6x, along with dividend yields of 1.0% and 1.2%. Beaufort reiterates its Buy rating on the Shares.
By IOMINVESTCOM