Card Factory proceeds grows as wholesale gross sales rise

Card Factory reported increased proceeds and improved money era, although like-for-like gross sales at its UK shops fell as client pressures and a scorching summer time weighed on footfall.

Darcy Willson-Rymer, Chief Executive Officer, mentioned: “We made additional progress within the first half in direction of constructing a broader, extra diversified celebrations corporate affairs. Despite continued stress on the UK client, Group proceeds elevated and profitability remained broadly flat, with improved retailer profitability and disciplined working capital administration delivering sturdy Free Cash Flow.”

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The greetings card and items retailer mentioned proceeds rose 5.3% to £260.8m within the six months to 31 July, helped by final yr’s acquisition of the web playing cards corporate affairs Funky Pigeon and development in wholesale.

Adjusted pre-tax revenue was broadly flat at £12.7m, as improved retailer margins had been offset by capital allocation in its digital and global operations. On a statutory foundation, pre-tax revenue jumped 63% as one-off prices fell away.

Trading in its core UK shops was softer, with like-for-like gross sales down 2% amid subdued client confidence, although its Irish shops grew strongly and wholesale gross sales, via partnerships with the likes of Aldi and The Reject Shop, rose 14%.

The firm generated constructive free money stream, uncommon for its first half, and raised its interim dividend 8%.

Card Factory mentioned it remained assured it might meet full-year expectations, citing sturdy plans for the essential “golden quarter” of Christmas buying and selling and noting that UK retailer gross sales had returned to development in current weeks.

It is continuous a £15m share buyback.