28th Sep 2021 09:26
(Alliance News) - Card Factory PLC on Tuesday posted a first half earnings improvement and drew up plans to increase annual revenue to over GBP600 million by 2026.
In the six months to July 31, revenue rose 16% year-on-year to GBP116.9 million from GBP100.5 million. The greeting card retailer's pretax loss narrowed to GBP6.5 million from GBP22.2 million a year earlier.
Earnings improved despite lockdown measures. Its physical stores were closed for more than 10 weeks of the first half.
Card Factory's online arm, meanwhile, is "performing well" but has seen demand reduce slightly as stores have reopened.
Like last year, the company will not pay an interim dividend. It has suspended payouts since the outbreak of Covid-19.
"Currently, we do not expect to pay any dividends in relation to FY22. The terms of the company's refinancing restrict the payment of dividends until the GBP75 million term loan and GBP50 million Coronavirus large business interruption loan scheme facilities have been repaid," Card Factory said.
Looking ahead, the company is "cautiously positive" about its second half prospects.
Further out, it outlined plans to boost revenue above GBP600 million by financial 2026. It expects 20% of this to come from online or multi-channel and retail partnerships.
Revenue in financial 2021 amounted to GBP285.1 million, less than half its financial 2026 target.
Card Factory added: "The store portfolio will be optimised to ensure Card Factory has profitable stores in high footfall locations, with 100 net new stores added to the existing portfolio of over 1000 stores across the UK and Republic of Ireland, by FY2026. The group will target under penetrated areas, including London, the Republic of Ireland, and areas of high footfall, including retail parks."
Shares in the company were 2.0% lower at 58.80 pence each in London on Tuesday morning.
By Eric Cunha; [email protected]
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