5th Apr 2016 06:18
LONDON (Alliance News) - Card Factory PLC on Tuesday reported strikingly higher profit in its recently-ended financial year, boosted by revenue growth in both card and non-card offerings.
The card and gifts retailer said pretax profit in the year ended January 31 almost doubled to GBP83.7 million from GBP42.7 million the year before, as revenue rose to GBP381.6 million from GBP353.3 million.
Like-for-like sales grew by 2.8%, which Card Factory said was driven by improvements in the quality and range of its products, new merchandising initiatives, and further market-share gains as stores mature.
During the year, 50 new stores were opened and 10 stores were closed, taking the total estate to 814 stores. Card Factory plans to open a further 50 new stores in the current financial year.
Pretax profit in the prior year was also hit by costs relating to Card Factory's initial public offering in London.
Card Factory will pay a total dividend of 8.5 pence per share, up from 6.8p a year earlier.
"This has been another excellent year for Card Factory. We have continued to expand our store portfolio and grow our market share, and our complementary online sales channels are progressing very well. We have maintained our industry-leading margins and believe that we are better placed than most to manage the increased cost pressures that our sector is facing," Chief Executive Richard Hayes said in a statement.
By Karolina Kaminska; [email protected] @KarolinaAllNews
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