The owner of Patisserie Valerie has reported a rise in full-year sales and profits as tight cost controls helped it overcome soaring inflation, with the group also considering opening a new production plant in Manchester.
Revenue at Patisserie Holdings, chaired by serial entrepreneur Luke Johnson, grew 9.7 per cent to £114.2m in the 12 months to September 30, while pre-tax profit rose 17.1 per cent to £20.2m.
The group pointed to inflationary wage and ingredient cost pressures over the period, although it said this appears to be “easing”.
British businesses have been hammered by rising costs following the collapse in sterling after the Brexit vote.
But Mr Johnson said: “Our indulgent, affordable treats remain attractive to customers, and our flexible business model has enabled us to mitigate inflationary cost pressures.”
Patisserie Holdings also said that it is reviewing options for an additional production facility in the Manchester area with capacity to serve 70 stores, as well as baking goods within all of its stores.
“Both of these initiatives will provide additional capacity to the group as well as releasing savings and efficiency and improving product quality,” the firm said.
Stores are currently serviced from its main bakery in Birmingham and from seven satellite bakeries across the UK.
Online sales rose 26 per cent to £4.8m in the period as the company said its engagement with consumers via social medial platforms such as Facebook, Instagram and Twitter is reaping rewards.
Patisserie Holdings, which also operates Druckers, Baker & Spice and Philpotts, opened 20 new stores in the period, including further forays into Scotland and Ireland.
The company trades from a total of 199 stores and is targeting 20 new stores for 2018.
Patisserie Holdings also entered into a supply-only agreement with Sainsbury’s during the year, and will operate from 18 of the supermarket’s counters by year end.
Mr Johnson said: “We have delivered another year of excellent financial results, achieving our targets in a challenging environment.
“We opened 20 new stores many of which are performing ahead of expectations, and the performance of our new bakeries in the Republic of Ireland is encouraging.”