Investors eat up Patisserie Valerie’s good news

Shares in Patisserie Valerie rose 8% yesterday after the cafe chain served up a tasty increase in pre-tax profits.

The Birmingham-headquartered group generated profits of £20.2m in the year to September, a 17% increase, on the back of a 10% increase in sales.

Executive chairman Luke Johnson said he was “confident of another year of growth and achievement” after revealing annual revenues of £114.2m.

He said: “Our indulgent, affordable treats remain attractive to customers, and our flexible business model has enabled us to mitigate inflationary cost pressures.”

Investors clearly agreed with his assessment of a “highly cash generative group, strong brands and a focused management team” as Patisserie Valerie’s bounced back from a soggy November.

Its share price is now one-third higher than its year-low of 253p, and the group now has a market value of £340m.

Johnson added: “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.”