Sales and margins have recovered at Cake Box, the egg-free cake specialist.

The franchise business, which has a store in Gloucester, is expecting to see a 6% year-on-year rise in sales for the six months to the end of September, with adjusted profits ahead of the previous year, as reported by The Times.

The company said the cost of raw materials had remained stable since the second half of last year and franchisees had seen a 'relief from inflationary pressures' with fuel and utility prices easing slightly during the period.

The cost of baking Cake Box products soared after the Russian invasion of Ukraine drove up the price of energy. The retailer was also hit by a big rise in the price of cream and the ingredients for a sponge, while labour costs had also increased.

Cake Box said it has entered the second half of the year with good momentum and is confident about its growth prospects for the future.