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Highlights

  • CARD’s HY26 revenue rises 5.9% to GBP 247.6 million, supported by store openings and partnerships.
  • Adjusted profit before tax falls 9 percent to GBP 13.2 million due to strategic investments.
  • Acquisition of Funky Pigeon completed for GBP 24.1 million to enhance digital presence.

Card Factory PLC (LSE:CARD) has unveiled financial results for the six months ending 31 July 2025 (HY26). Group revenue increased 5.9 percent to GBP 247.6 million (HY25: GBP 233.8 million), supported by growth in core stores and strategic initiatives. Adjusted EBITDA decreased slightly to GBP 44.2 million (HY25: GBP 45.3 million), while adjusted profit before tax (PBT) declined 9 percent to GBP 13.2 million (HY25: GBP 14.5 million), affected by efficiency-focused investments including an upgrade to the point-of-sale system.

Earnings per share (EPS) for HY26 were 2.8 pence, down from 3.1 pence in HY25. Basic EPS was 1.6 pence (HY25: 3.0 pence). The interim dividend increased slightly to 1.3 pence per share (HY25: 1.2 pence).

Operational Highlights

During HY26, 13 new stores were opened, contributing to total store revenue growth of 2.9 percent year-on-year, while like-for-like (LFL) sales increased 1.5 percent, in line with trends in the non-food retail sector. Seasonal campaigns, including Valentine’s Day and Mother’s Day, positively influenced revenue, and partnerships delivered double-digit growth, with total partnerships revenue of GBP 16.5 million (HY25: GBP 6.6 million).

Online sales at cardfactory.co.uk declined 11.3 percent in LFL terms as the focus shifted to higher-margin digital offerings. Free cash flow improved to GBP 30.5 million (HY25: GBP 17.5 million), aided by better working capital management. Adjusted leverage, excluding leases, was 1.0 times (HY25: 0.9 times).

Acquisition of Funky Pigeon

Post-period, the group completed the acquisition of Funky Pigeon for GBP 24.1 million, making Card Factory the second-largest online card and attached gifting retailer in the UK. The acquisition is expected to be earnings-enhancing in FY27, with projected annual synergy benefits above GBP 5 million through optimization of manufacturing, fulfilment, technology, and product range.

Management Commentary
 Darcy Willson-Rymer, CEO, stated:
"Our resilient first half performance against a challenging retail backdrop demonstrates the effective execution of our growth strategy and our ability to navigate inflationary pressures. With the peak festive season ahead, we are well prepared for our most important trading period…Our expectations for the full year remain unchanged."

Outlook
Card Factory expects the second half of HY26 to follow a similar seasonal profile to FY25. Adjusted PBT for FY26 is anticipated to grow in the mid-to-high single-digit percentage range, supported by ongoing revenue performance, seasonal trading plans, and the 'Simplify and Scale' productivity program.