TIDMCARD
RNS Number : 1583M
Card Factory PLC
10 January 2023
The information contained within this announcement is deemed to
constitute inside information as stipulated under the Market Abuse
Regulation (EU) No. 596/2014 which is part of UK law by virtue of
the European Union (Withdrawal) Act 2018. Upon the publication of
this announcement, this inside information is now considered to be
in the public domain.
10 January 2023
Card Factory plc ("Card Factory" or the "Group")
Trading ahead of expectations; good momentum across the
business
Card Factory, the UK's leading specialist retailer of greeting
cards, gifts, wrap and bags, announces a profit upgrade alongside
its trading update for the eleven months ended 31 December
2022.
Business highlights
-- Sales for the eleven months ended 31 December 2022 of
GBP432.6 million (11 months to 31 December 2021: GBP337.3
million(1) ) reflects the continued good momentum within the
business alongside the shift of customer spend back towards the
high street.
o Store revenue grew +7.1% on a Like-For-Like(2) (LFL)
basis.
o Strong Christmas trading driven by improvements in both store
transactions and average basket values supported by effective range
development and our compelling value for money offer across both
cards and gifts.
o Customers returning to the high street and impact of Royal
Mail strikes saw online sales down 27.6% year-on-year.
cardfactory.co.uk sales remain up significantly in comparison to
pre-pandemic levels +85.2% 3Y.
-- Everyday card ranges and complementary categories have
continued to perform well with prior work on range expansion and
improving availability supporting the positive performance.
-- As a result of the continued trading momentum, the Board now
expects that EBITDA for the 12 months to 31 January 2023 (FY23)
will be at least GBP106 million. This EBITDA would approximate to
PBT of around GBP48 million, which includes GBP3.5 million of
one-off benefits due to the release of CJRS provision and deferred
fee accrual release associated with prior refinancing package.
-- Net debt (excluding lease liabilities) as at 31 December 2022
was GBP46.5 million (31 December 2021: GBP60 million).
1 Covid restrictions included store closures prior to 12 April
2020.
2 The LFL calculation is based on Stores that were trading in
both the current year and the comparative period.
Trading update
Performance over the period benefitted from good momentum across
the business and the ongoing reversal of lockdown effects as
customers continued to return to the high street. This is evidenced
by store revenue growing by +7.1% on a LFL basis, with store
transactions and average basket values also improving on the
previous period. Sales for cardfactory.co.uk were impacted in
December by the Royal Mail strikes but the performance remained
comfortably ahead of pre-pandemic levels.
Strong seasonal trading in stores over the Christmas period was
supported by our range development and value for money offer across
both cards and gifts. Christmas trading also benefitted from the
agility provided by our vertically integrated model, as well as
forward ordering and delivery of Christmas ranges, which
underpinned strong availability in stores across the Christmas
period .
A strong performance in both Everyday card ranges and
complementary categories supported trading over the year to date.
Wedding, life moments, milestone and children's ranges were the
best performing of the Everyday card range, and all saw double
digit LFL growth. The performance in complementary categories was
driven by the range expansion work completed in the first half of
the year. Confectionery, pocket money toys and wrap and bags were
amongst the high growth categories.
We are pleased with the progress we have made on our growth
strategy as we continue to focus on becoming a market leading
omnichannel retailer of cards and gifts. We have continued the
initial roll out of our new model store format, with ten stores now
open and generating an uplift to sales compared to comparator
stores. Further conversions of a number of stores are planned for
FY24. In September we launched our Click & Collect trial, which
is now live in 85 stores and have seen a positive initial reaction
to the service. We continued to expand our complementary
categories, launching alcohol, flowers, confectionery, and gift
experiences on cardfactory.co.uk. We have also continued work on
securing good foundations for future partnership opportunities.
Outlook
Whilst remaining mindful of the challenging economic backdrop,
we take confidence in our compelling value for money proposition
and the level of ongoing customer demand.
We have continued to successfully manage inflationary pressures
during FY23. We are hedged on energy costs until September 2024 and
have a currency hedge in place for the majority of our FY24
requirements at rates favourable to the current market. We are
monitoring the impact of other cost pressures affecting our sector
and will update further in our Preliminary Results.
T he Board believes that EBITDA for FY23 will be at least GBP106
million versus current consensus of GBP96.9 million. This EBITDA
would approximate to PBT of around GBP48 million. The Board is
encouraged by the strong trading momentum and remains confident in
the long-term prospects of the business.
Our next update will be in our Preliminary Results for FY23
which is scheduled for 25 April 2023.
Darcy Willson-Rymer, Chief Executive Officer, commented:
"We're pleased and encouraged by the continued strong
performance of the business. With delivery of our growth strategy
progressing well, it is great to see some of the benefits from this
work starting to come through in our financial performance.
I'd like to thank all our colleagues who have supported these
changes and worked tirelessly over the important Christmas trading
period. There is still more work to be done but we are very excited
by the opportunities ahead and have confidence in our Opening Our
New Future growth strategy."
Enquiries
Card Factory plc via Tulchan Communications (below)
Darcy Willson-Rymer, Chief Executive Officer
Kris Lee, Chief Financial Officer
Tulchan Communications +44 (0) 207 353 4200
James Macey White / Toby Zeal / Ayo Sangobowale cardfactory@tulchangroup.com
This announcement contains certain forward-looking statements
with respect to the financial condition, results of operations, and
businesses of Card Factory plc. These statements and forecasts
involve risk, uncertainty and assumptions because they relate to
events and depend upon circumstances that will occur in the future.
There are a number of factors that could cause actual results or
developments to differ materially from those expressed or implied
by these forward-looking statements. These forward-looking
statements are made only as at the date of this announcement.
Nothing in this announcement should be construed as a profit
forecast. Except as required by law, Card Factory plc has no
obligation to update the forward-looking statements or to correct
any inaccuracies therein.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
TSTBLMPTMTTMBFJ
(END) Dow Jones Newswires
January 10, 2023 02:00 ET (07:00 GMT)
Card Factory (LSE:CARD)
Gráfica de Acción Histórica
De Abr 2024 a May 2024
Card Factory (LSE:CARD)
Gráfica de Acción Histórica
De May 2023 a May 2024