21st May 2021 11:56
(Alliance News) - Card Factory PLC on Friday, reported a marginal drop in like-for-like store sales, compared with the same period in 2019, as non-essential stores reopened across the UK this April.
Even so, in-person sales exceeded company expectations since reopening stores progressively across the UK and Ireland from April 12 to May 17, Card Factory said.
"To date, increased spend per transaction has primarily offset the reduced retail footfall: customers are shopping less frequently but buying more." Online sales fell since stores reopened in England and Wales in April, but remained higher than pre-pandemic levels.
The greeting card retailer, based in Wakefield, England, also completed refinancing with its existing commercial banking syndicate. The refinancing has increased Card Factory's bank facilities to GBP225 million from GBP200 million. The agreement runs until September 24, 2023 with the possibility of an extension.
"The secured facilities provide Card Factory with the necessary financial resources to focus on its future growth strategy. This includes strengthening Card Factory's online customer proposition and the capability and capacity to fulfil sales demand," said the company.
The refinancing is designed to incentivise debt reduction by implementing fees of up to GBP5 million for any failure to make repayments on scheduled dates between November 30 this year and July 30, 2022. Card Factory's net debt totalled GBP110 million on May 16, with additional deferrals of around GBP40 million.
Card Factory will announce results for its financial year that ended January 31 on June 8.
Card Factory shares were trading down 8.1% at 79.00 pence each in London on Friday.
By Scarlett Butler; [email protected]
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