Patisserie Valerie cafe chain profits soared 17pc as Manchester factory expansion looked into

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(qlmbusinessnews.com via telegraph.co.uk – – Mon, 27 Nov, 2017) London, Uk – –

Patisserie Valerie, the cafe chain headed by veteran entrepreneur Luke Johnson, is considering opening a new factory in Manchester after posting another year of rapid growth.

Revenues climbed 9.7pc to £114.2m in the year to September, while pre-tax profits soared 17pc to £20.2m.

Mr Johnson, Patisserie Valerie’s executive chairman, said the chain’s “indulgent, affordable treats remain attractive to customers” and that its “flexible” business model helped offset rising costs – which included the higher minimum wage.

Patisserie Valerie’s cafes are supplied by its main bakery in Birmingham and seven others around the country. The chain said it was considering opening a new factory near Manchester big enough to service 70 stores, to provide extra capacity and improve efficiency.

Revenues were boosted by a deal with Sainsbury’s signed earlier this year, which has led to Patisserie Valerie selling cakes through counters at 18 of the supermarket chain’s stores.

Patisserie Valerie is boosting its dividend by 20pc to 2.4p per share. It opened 20 new cafes in the year, bringing the total to 199, and its Cake Club promotional scheme attracted around 40,000 extra members.

Mr Johnson said: “We have delivered another year of excellent financial results, achieving our targets in a challenging environment.”

Shares in Patisserie Holdings were up 6.5pc to £3.34 in morning trading.

 By Jack Torrance