3rd May 2023 11:18
(Alliance News) - Card Factory PLC on Wednesday reported a full-year profit rise, shaking off inflationary pressure and a hit to its online channel from UK postal strikes.
The Wakefield, England-based greeting cards retailer said revenue for the year ended January 31 rose 27% to GBP463.4 million, from GBP364.4 million. This was attributed to a strong performance of store-based sales and everyday card ranges, as well as strong trading during Christmas.
Pretax profit more than tripled to GBP52.4 million from GBP11.1 million the year before. Card Factory explained this includes GBP3.5 million of one-off benefits relating to a Coronavirus job retention scheme settlement with HM Revenue & Customs.
It also said a "majority of inflationary pressures were offset through a combination of efficiency measures and targeted price increases".
Full-year earnings before interest, taxation, depreciation and amortisation grew to GBP112.0 million, from GBP85.6 million.
It reported sales in its online division fell 19% year-on-year. Card Factory said customers returned to the high street. The online channel was also hurt by "Royal Mail strikes during the Christmas trading period". Online sales are some 86% ahead of pre-Covid levels, however.
The company did not propose a final dividend for financial 2023, unchanged from the year prior.
Looking ahead, Card Factory said trading for the new financial year is "slightly ahead" of expectations.
The company added it is confident in its ability to withstand inflationary pressures and in growth opportunities for the business.
As part of its capital markets strategy update, Card Factory said it will outline a pathway for revenues of around GBP650 million in FY27, supported by a capital investment plan of GBP24 million per annum, over the next three years.
Chief Executive Officer Darcy Willson-Rymer said: "These strong results reflect positive momentum across the business, including notable progress on our strategic growth initiatives, buoyed by the marked shift of customer spend back towards the high street.
"Proactive measures that we put in place to manage the inflationary pressures faced in the year, coupled with our strengthening financial position, have underpinned positive progress on our strategic priorities," she added.
Shares in Card Factory were down 5.0% at 105.60 pence each in London on Wednesday morning.
By Sabrina Penty; Alliance News reporter
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