Cautious Card Factory posts profit increase

RETAILER Card Factory has posted growth in revenues and pre-tax profits, but chief executive Karen Hubbard highlighted the “softer footfall” and lower-than-normal sales growth in the half year.

For the six months to 31 July 2016, the Wakefield-based company reported revenues up 4.8% to £169.2m.

Profit before tax increased to £27.6m from £25.7m in the comparative period last year.

It said that it had seen “strong” growth in its digital platform which it launched in April last year, and opened 34 new stores during the six month period, but that the weakness of Sterling and expected increases in National Living Wage will be the most significant cost pressures on the business.

Karen Hubbard, chief executive officer, who has been in post for five months, commented: “We have delivered a solid set of interim results with further growth in both revenue and profit, albeit with softer footfall resulting in slightly lower than normal sales growth from our stores.

“We remain highly cash generative and are pleased to be announcing another special dividend of 15 pence per share. Together with the interim dividend, this means we will have returned over £160m to shareholders since IPO just over two years ago.

“Trading in recent weeks has been similar to the trends seen in the first half, with encouraging continued growth in average spend. We approach the important final quarter with confidence in the quality and value of our offer, including our new Christmas ranges, and remain confident of delivering full year underlying profit before tax within the range of expectations.

“We remain as convinced as ever of the strong growth prospects for the business, and of our ability to deliver further returns of surplus cash to shareholders over the medium term.”