[SharePad] Small-Cap Spotlight Report: CAKE BOX

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21 January 2022
By Maynard Paton

Oh dear. I had expected this article to celebrate a dynamic growth company that had commendably prospered during the pandemic.

I find myself instead relaying some unusual financial reporting after digging deep into a few annual reports.

Read on to discover:

• An erroneous £2 million entry within the cash flow statement;

• The inconsistent disclosure of related-party transactions;

• The delayed reporting of a website breach to the auditor (and customers);

• “Historic errors” with stock control;

• The auditor resigning after becoming “concerned about the robustness of the Company’s control and governance frameworks“;

• The peculiar disclosure of trade payables and receivables, and the level of receivables versus revenue, and;

• Bookkeeping curiosities such as overdue tax, R&D tax credits and regular revaluations of distribution centres.

Let’s take a closer look.

Read my full Cake Box article for SharePad.

Maynard Paton

PS: I have provided more Cake Box observations on the Quidisq forum.