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Patisserie Holdings upbeat as cost pressures ease

Cake and coffee chain overcomes cost to deliver revenue growth of 20%
picture of cakes
Profits rise as Patisserie Holdings contains costs

Cake and coffee chain Patisserie Holdings PLC (LON:CAKE) said the pressure of rising costs appeared to be easing as annual profits rose by a fifth and another twenty new outlets opened.

Best known for Patisserie Valerie, the group also opened its first Philpotts sandwiches outlet and started a supply agreement with Sainsbury’s.

Luke Johnson, executive chairman, said the opening programme had taken in twelve new places and many of the new stores has traded better than expected.

Keeping a lid on costs

“A flexible business model has enabled us to mitigate inflationary cost pressures.” he said, with cost rises returning to normal after a first half spike.

The group is looking at a new bakery in Manchester with capacity to serve 70 stores. Currently, Patisserie has 199 stores in total.

Revenues in the year to September rose by 9.7% to £114.2mln while profits jumped 17% to £20.2mln.

The final dividend rises by 20% to 2.4p

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