Card Factory profits jump, dividends reinstated

30th Apr 2024 08:12

(Sharecast News) - Card Factory shot higher on Tuesday as it said it was resuming dividend payments and posted a jump in full-year profits.

In the year to the end of January, pre-tax profit pushed up 25.2% to £65.6m, with revenue 10.3% higher at £510.9m. The retailer said revenue growth reflects continued positive momentum across the business and effective execution of its strategy.

Total store revenue grew 8.7%, including a contribution from 26 net new store openings during the period.

Card Factory's like-for-like revenue was up 7.6%, meanwhile, driven by a strong store performance, with growth in card, gifts and celebration essentials, and positive traction in online.

Store revenue rose 7.7% on a LFL basis reflecting development of the company's store layout, customer experience and ranges, as well as annualisation of targeted price increases.

Cardfactory.co.uk sales were up 0.4% on an LFL basis, with a particularly strong performance in the second half.

The retailer said trading since the start of the new financial year has been in line with the board's expectations, with continued positive momentum across card, gifts and celebration essentials for the FY25 spring seasons of Valentine's Day and Mother's Day. It hailed a record trading day on the Saturday before Mother's Day.

The company declared a dividend of 4.5p a share for the year.

Chief executive Darcy Willson-Rymer said: "I am delighted with the progress we have made through the year which would not have been achieved without the commitment and efforts of our colleagues.

"Now, three years into our 'Opening our New Future Strategy', Card Factory is financially and operationally a much stronger business. This means that we are able to both reinstate the dividend and invest in the future, while effectively navigating the ongoing economic environment.

"We have confidence in our strong value and quality customer proposition, and remain on track for both this financial year and for achieving our FY27 targets outlined at our Capital Markets Day in May last year."

At 0810 BST, the shares were up 11.3% at 112.00p.