"Record year" for Card Factory after stock exchange debut

CARD FACTORY has reported “another record year” after making its debut on the London Stock Exchange.

The Wakefield-based retailer floated in May at 225p, and has seen its share price rise steadily since September to a close last night of 298p. The company now has a market value value of £1bn.

Sales were up 8.1% to £353.3m in the year to January 31, with like-for-like sales up 1.8%. The chain added 51 stores and now has 764, with plans to increase by another 50 this year.

Card Factory’s chief executive Richard Hayes said: “It is pleasing to report another record year for Card Factory in terms of both revenue and profit.  Our team has once again delivered on each element of our growth strategy, cementing our position as the UK’s leading specialist greeting cards retailer.  Our unique, vertically integrated model remains a real point of difference and a source of long-term competitive advantage in what is a very resilient market.  

“Overall, we are in an excellent position and we remain confident of our future prospects.  We will continue to strongly defend our market leading position, whilst maintaining our focus on delivering best-in-class margins.”

Pre-tax profits increased by £12.6m to £42.7m, although it was affected by financing costs and IPO charges. Underlying operating profit more than matched sales growth, with an 8.9% rise to £88.2m.

The IPO and refinancing has significantly reduced its net debt, down from £346.9m to £101.4m.