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Interim Results

Card Factory sees revenue growth

26 September 2017 07:31

Card Factory saw strong revenue growth in the first half and has declared a special dividend while investing for the future.

Revenues for the six months to the end of July rose by 6.1% to £179.6m - up 6.7% on an equivalent number of trading days - with like-for-like sales up 3.1%.

Underlying EBITDA fell by 4% to £32.8m and operating profits were down 13.9% at £24.6m.

The group declared an interim dividend of 2.9p per share - up 3.6% - and special dividend of 15p per share, return of £51.2m to shareholders.

Chief executive Karen Hubbard said: 'We have delivered a solid set of interim results with strong growth in like-for-like sales and total revenue, despite the decline in footfall seen across the high street; however, profitability over the half year was impacted by foreign exchange, national living wage and some of the important investments we are making in the business for longer term growth.

'Our business model remains highly cash generative and we are pleased to be announcing another special dividend of 15 pence per share.

'Together with the interim dividend, this means we will have returned £246.5m to shareholders since IPO in May 2014.

'The Board intends to retain its progressive ordinary dividend policy and to continue to return any surplus funds to shareholders whilst giving consideration to the leverage of the business.

'We are the clear leaders in the greeting card market, with a strong proposition which is resonating well with customers despite challenges in the wider consumer environment.

'Our unique operating model continues to differentiate us from the competition, allowing us to strengthen our market-leading position. 'Trading in recent weeks has been similar to the encouraging trends seen in the first half, with continued growth in average spend as customers respond well to our new and better ranges.

'The Board is confident that the Group will continue to make further strategic progress, although notes that the full year profit outturn will reflect a continuation of some of the headwinds identified in the first half. 'We remain as convinced as ever of the strong growth prospects for the business.'

Story provided by StockMarketWire.com

Related Company: CARD

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