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Highlights

  • CARD’s H1 FY25 revenue grew by 5.9%, driven by store growth and online sales.
  • Adjusted PBT dropped 34.4%, impacted by higher wages and inflation in freight costs.
  • The company declared a GBP 6.20 interim dividend, payable on December 11, 2024.

Card Factory PLC (LSE:CARD) is a retail supplier of gift wraps, gifts, and greeting cards. It is listed on the FTSE All-Share index and has a market cap of GBP 278.2mn.

In H1 FY25, the company reported a revenue of GBP 233.80 million, reflecting a 5.9% increase over H1 FY24. This growth was primarily driven by a 3.7% like-for-like (LFL) store growth, better performance in the gifting and celebration essentials categories, and an 8.8% rise in online sales. Additionally, partnerships contributed GBP 6.6 million to the total revenue, with GBP 3.9 million coming from SA Greetings.

However, the company's adjusted profit before tax (PBT) saw a decline of 34.4%, dropping from GBP 22.10 million in H1 FY24 to GBP 14.50 million in H1 FY25. This decrease was attributed to higher wages driven by National Living Wage increases, inflation in freight costs, and strategic investments. Despite this, the company anticipates cost-saving measures and the benefits of ongoing investments to positively impact performance in the second half of FY25. The Profit After Tax (PAT) also fell by 41.1%, from USD 21,094 million to USD 12,420 million.

Recent Business Update

On September 24, 2024, the company announced an interim dividend of GBX 6.20 per share for the first half of FY25. It covers the period ended July 31, 2024. The dividend is expected to be paid on December 11, 2024.

Company Outlook

The company's management remains optimistic as the trading results for the first half are in line with expectations, and preparations for the Christmas season are progressing smoothly. New product ranges focusing on quality and value are set to enhance the holiday offering. While inflationary pressures have slightly eased, the company continues to manage retail-specific challenges effectively.

Profit margins are anticipated to improve in the second half, driven by seasonal sales, productivity gains, range enhancements, and careful cost management. Full-year expectations remain steady, supported by strong first-half results and effective inflation mitigation strategies. The board is confident in achieving medium-term growth and meeting its FY27 targets.

Top 10 Shareholders

The top 10 shareholders of CARD together account for approximately 49.34% of the total shares. Artemis Investment Management LLP holds the largest share, with around 8.55% stake, followed by Blundy (Brett) with about 8.15%, as shown in the chart below:

Stock Information

CARD's stock price has declined by approximately 38.73% over the past three months. The stock's 52-week high and low are GBX 144.25 and GBX 78.90, respectively, and it is currently trading below the average of these two values.

Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference data for all price data, currency, technical indicators, support, and resistance levels is 20 November 2024. The reference data in this report has been partly sourced from EODHD/Others.