Retailer Results / Card Factory

24/05/2016

Card Factory

Trading Update
Q1 up to 30 April 2016

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05/04/2016

Card Factory

Full Year Results
Preliminary results for the year ended 31 January 2016

Highlights

• Revenue £381.6m, up +8.0 per cent (£353.3m FY15)
- LFL +2.8 per cent
- Getting Personal +17.5 per cent
• Underlying EBITDA £95.0m, up +7.7 per cent (£88.2m FY15)
• Underlying Operating Profit £85.3m, up 7.4 per cent (£79.4m FY15)
• Profit Before Tax £83.7m, up +96.2 per cent (£42.7m FY15)

Summary

This has been another impressive year for Card Factory which has continued to deliver strong growth across the store portfolio and the online operations are progressing well. Total sales rose by +8.0 per cent while LFL were up 2.8 per cent. Getting Personal, the online division, rose by 17.5 per cent.

The Group delivered a good level of growth in the period driven by a combination of like-for-like sales growth, new store roll-out and further growth in online activities. Like-for-like sales growth benefited from particularly strong growth in non-card products.

50 net new stores were opened in the period, bringing the total estate to 814 stores as at 31 December 2015. Looking ahead, the Group has a strong pipeline of additional new store opportunities and with management suggesting a rate of approximately 50 net new stores per annum.

The principal online business, Getting Personal (www.gettingpersonal.co.uk), continued to deliver the targeted double digit revenue growth in the second half. As highlighted in the interim results, this was, as expected, at a lower level than the 24.9 per cent revenue growth achieved in the first.

The Group continues to be high cash generative, benefiting significantly from its unique vertically integrated business model.

Richard Hayes, Card Factory's Chief Executive Officer, said: "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. Our strong cash generation has allowed us to deliver excellent returns to shareholders by returning surplus funds through both ordinary and special dividends.

"I am fortunate to have had the opportunity to lead Card Factory through an exciting period of growth and change. It is a very strong business with a great team of people who have all contributed to growing the business from a small chain of discount stores to a vertically integrated high margin value retailer with over 800 stores nationwide and two transactional websites. I would like, again, to welcome my successor Karen Hubbard, and to wish her and the team every success for the future."


26/01/2016

Card Factory

Trading Update
Period covers 11 months ended 31 December 2015

Highlights

• Like-for-like store sales growth of +2.8 per cent (11 months ended 31 December 2014: +1.8 per cent)
• Total sales growth of +8.1 per cent (11 months ended 31 December 2014: +8.1 per cent)
• 50 net new stores opened in the period in line with historic and projected roll-out rate
• Further development of both Getting Personal and Card Factory transactional websites
• Board's expectations for the full financial year unchanged


Summary

Card Factory has continued to trade in line with the Board's expectations delivering LFL growth of +2.8 per cent over the 11 months to 31 December. Total sales rose by +8.1 per cent. The Group delivered a good level of growth in the period driven by a combination of like-for-like sales growth, new store roll out and further growth in online activities. Like-for-like sales growth benefited from particularly strong growth in non-card products, which continued through the Christmas trading period.

50 net new stores were opened in the period, bringing the total estate to 814 stores as at 31 December 2015. Looking ahead, the Group has a strong pipeline of additional new store opportunities and with management suggesting a rate of approximately 50 net new stores per annum.

The principal online business, Getting Personal (www.gettingpersonal.co.uk), continued to deliver the targeted double digit revenue growth in the second half. As highlighted in the interim results, this was, as expected, at a lower level than the 24.9 per cent revenue growth achieved in the first half given the much tougher comparative in the second half of last year when turnover increased by 27.1 per cent. The trial of the relaunched Card Factory transactional website (www.cardfactory.co.uk) is also progressing well.

The Group continues to be highly cash generative.

Richard Hayes, Card Factory's Chief Executive Officer, said: “As we approach the end of our financial year, it is pleasing to report that the Group has continued to perform well through the important and competitive Christmas trading period.

"We remain on course to deliver sales growth at a similar level to last year, highlighting once again the strength and consistency of our retail proposition and performance, underpinned as ever by our unique vertically integrated model."

Special note - As announced on 6 January 2016, Karen Hubbard will join the Board as CEO Designate on 22 February, and will succeed Richard Hayes as CEO in mid-April. Richard will retire from the Board and leave the Group at the end of June 2016, following a four-month handover period.


12/11/2015

Card Factory

Trading Update
Nine months ended 31 October 2015

Highlights

• Total sales growth of +7.9 per cent (9 months ended 31 October 2014: +8.7 per cent)
• Continued store roll out with 45 net new stores opened (9 months ended 31 October 2014: 48)
• Further development of both Getting Personal and Card Factory transactional websites with growth in double digits (unspecified)

Summary

In the nine months to 31 October 2015, revenue increased by +7.9 per cent, driven by a combination of like-for-like sales growth, new store roll out and further growth in the online proposition. These latest figures are in line with the Board’s expectations.

In Q3 there were a further 9 net store openings bringing a total of 45 net new stores in the year to date. The total store estate now stands at 809 stores, remaining on track to deliver 50 new stores in the current financial year.

Online performed very strongly with Getting Personal (www.gettingpersonal.co.uk), the main brand, delivering double digit growth. However, it is now facing more challenging comparative figures having delivered 27.1 per cent revenue growth in the second half of last year. The Group expects second half growth to have slowed on 24.9 per cent revenue growth achieved in the first half.

Richard Hayes, Card Factory's Chief Executive Officer, said: "We have seen another period of consistent performance across the Group as we continue to drive growth from existing and new stores, as well as our expanding online operations. We are well prepared for the important, competitive Christmas period, and remain confident of our ability to continue to increase market share whilst delivering on all four pillars of our growth strategy."


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