Stonegate hits insurance broker Marsh with £85m negligence claim: Stonegate Group, the UK’s largest pub company, is suing insurance broker Marsh over cover it arranged for the pub operator that allegedly left many of its establishments without business interruption insurance at the height of the covid-19 pandemic. Law firm Stewarts has served particulars of a negligence claim against Marsh, the world’s largest insurance broker, on behalf of 20 subsidiaries of Stonegate Pub Company. The claim is for more than £85m plus interest and costs. Stonegate’s lawyers have defined the case as “of interest to both the insurance and hospitality sectors in examining the professional standards brokers should be held to when placing insurance for groups of companies”. Stewarts claimed Marsh’s documents show it mistakenly named the insured party on the policy incorrectly, which meant only the parent company was insured and not the subsidiaries. According to Stewarts, Marsh was instructed to place insurance on behalf of around 750 bars and pubs. The claim alleges Marsh negligently arranged an insurance policy that left 209 of those sites without any business interruption insurance whatsoever. Stewarts said Stonegate, which had around £1bn of loss when pubs shut during covid, was therefore only able to recover one policy limit for all of the group’s losses rather than a policy limit per subsidiary as would have been the case were it not for Marsh’s negligence. Elaina Bailes, partner at Stewarts and a lawyer acting on the case, said: “The claim will be of interest to both the insurance and hospitality sectors in examining the professional standards brokers should be held to when placing insurance for groups of companies. These circumstances impact the hospitality sector more heavily than others, with a number of businesses being left with no alternative than to take legal action against their insurers in the wake of the pandemic. It will give rise to questions on how brokers handled the placement of complex business insurance cover pre-covid.”

 

Cake Box reports ‘strong’ start to second half as half-year revenue more than doubles to £28.8m: Cake Box, the specialist retailer of fresh cream cakes, has reported trading “remains on track to deliver another year of growth in line with market expectations despite the challenging consumer environment”. The company stated: “Second half revenue and profit is expected to be higher than the first half of the financial year, in line with the group’s normal seasonal trading pattern, resulting from a strong start to trading in the second half, important celebration events to come, new store openings and the continued digital growth. Total Cake Box franchise sales were 13.7% ahead in October 2025 with like-for-like sales up 5.0%, compared with the equivalent period in the prior year. We are on track to open 25 new Cake Box franchise stores and ten new franchised Ambala stores in the financial year. The Ambala integration is progressing well, and the board expects the investment made in the first half, and the important celebration events in the second half, to deliver higher revenue and profit in the second half compared with the first half. The board continues to have strong confidence in the group’s growth strategy and its ability to generate sustainable, cash-backed earnings growth and long-term dividend progression.” It comes after the business reported group revenue rose 53.5% to £28.8m for the six months ending 28 September 2025 (2024: £18.7m), with Ambala contributing £6.5m. Ebitda was up 31% to £4.5m (2024: £3.5m) while pre-tax profit was down 2.4% to £2.6m (2024: £2.8m). Franchise total sales including kiosks were up 14.6% to £47.6m (2024: £41.5m) with like-for-like sales growth of 6.3% compared with the equivalent period last year (2024: 2.0%). Franchisee online sales increased 25.9% to £11.3m (2024: £9.0m). The number of multi-site franchisees increased to 53 (2024: 47). Nine new Cake Box stores were opened during the period (2024: seven) with another four opened post period end; and two new Ambala franchisee owned stores opened during the period, bringing the total number of Ambala stores to 24 (19 corporate and five franchised). Chief executive Sukh Chamdal said: “We are pleased to report a strong performance in the first half of the year, resulting in a 53.5% revenue growth and a 33.3% increase in underlying Ebitda. This was driven by sustained consumer demand for our diverse product portfolio, the successful opening of nine new Cake Box stores and continuing strategic investments in our digital platform, which have significantly enhanced our online presence. With an encouraging pipeline for further expansion, we are well positioned to achieve our target of 25 more new Cake Box stores in FY26. In addition, online sales have been a key growth driver, now accounting for 25.0% of franchise store sales. This momentum is expected to continue into the second half, demonstrating the effectiveness of our integrated online and offline customer experience. Additionally, this period marks a maiden contribution from Ambala, following its acquisition by Cake Box in March 2025. We are pleased to report that the integration process is progressing smoothly, with a number of operational efficiencies already implemented. We opened two new franchised Ambala stores during the period, with a further eight franchised openings planned by year end, significantly expanding the existing store footprint. Looking ahead, the momentum of the first half has continued into the second half of the year and we are on track to deliver full year performance in line with our expectations despite the consumer environment remaining challenging.”