Share tip: If investors want value, let them eat Cake Box

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Narrated by James Marriott

If you imagine the share price graph of Cake Box as a five-tier wedding cake, investors are now tucking into a very lowly layer. Stock in the niche business — not just a cake seller, but an exclusively egg-free cake seller — has been on a frothy ride in recent years. After exceeding £4 in November 2021, when the company said its half-year revenues had almost doubled, today the shares are priced at 157p.

The firm, which has 212 branches around the UK and specialises in creamy cakes that cost about £30 but serve ten people, floated in 2018 at just over £1 a share. It is still suffering from a reputational hit since “inconsistencies” in its inventory reports were highlighted in 2022. A 160p-a-share