TIDMCARD
RNS Number : 0789A
Card Factory PLC
19 May 2023
19 May 2023
Card Factory plc
Annual Financial Report and Notice of AGM
Card Factory plc ("cardfactory" or the "Company") announces that
it has published its Annual Report and Accounts for the year ended
31 January 2023 and Notice of the Company's 2023 Annual General
Meeting.
The Annual General Meeting is to be held at the Company's
registered office, at Century House, Brunel Road, Wakefield 41
Industrial Estate, Wakefield, WF2 0XG at 11.00 a.m. on Thursday 22
June 2023.
Copies of the documents listed below have been posted to
shareholders on Thursday 18 May 2023:
1. Annual Report and Accounts 2023;
2. Notice of 2023 Annual General Meeting; and
3. Form of Proxy for the 2023 Annual General Meeting.
The Annual Report and Accounts and the Notice of the 2023 Annual
General Meeting will also be accessible later today via the
Company's investor relations website www.cardfactoryinvestors.com .
In compliance with LR 9.6.1, the Company has today submitted
electronic copies of the above documents to the National Storage
Mechanism appointed by the Financial Conduct Authority and these
will shortly be available for inspection at
https://data.fca.org.uk/#/nsm/nationalstoragemechanism .
cardfactory's preliminary results announcement on 3 May 2023
(which is available via the Company's investor relations website
referred to above) included, in addition to the preliminary
financial results for the year ended 31 January 2023, information
on important events that occurred during the year and their impact
on those financial results. That information, together with the
information set out in the Appendix below is provided in compliance
with the requirements of DTR6.3.5(2)(b). This information is not a
substitute for reading the full Annual Report and Accounts for the
year ended 31 January 2023.
For further information:
Ciaran Stone, Group General Counsel Tel: 01924 839150
and Company Secretary
Card Factory plc
S
Appendix
Principal Risks and Uncertainties
The principal risks and uncertainties facing the cardfactory
group (the "Group") are set out below, together with details of how
these are currently mitigated. For further information on how the
Group manages risk, see pages 58 to 62 of the Strategic Report and
also pages 72 and 73 of the Corporate Governance Report within the
Annual Report and Accounts 2023 ("Annual Report").
Risk Description Mitigation
Strategic Risks
ESG compliance Failure to meet requirements An ESG strategy has been
and of institutional investors, devised with five key work
climate change customers and other stakeholders streams. Management will
risks when it comes to ESG requirements, focus on these to achieve
including provision of the ambition of growing
sustainable products and the business in a socially
reducing waste and plastics and environmentally responsible
(includes climate change way.
risks).
Various actions in environmental
and social have been implement.
Please refer to the ESG
section of the Annual Report
on pages 36 to 43 for further
actions being taken.
------------------------------------ -------------------------------------
Adapting Failure to anticipate and Broader delivery of the
to customer adapt to changes in customer overarching commercial
preferences preferences and shopping strategy must ensure continual
habits, market dynamics adaptation to changing
and competitor activity-channel customer preferences; in
shift. store, online and through
our business partners.
Historically, the business
has had limited access
to meaningful customer
and marketing insight to
drive improved decision
making. The creation of
a marketing and insight
function has improved decision
making.
The commercial planning
process continually reviews
and responds to changing
customer purchasing behaviour.
As the business becomes
fully omnichannel, the
customer demands for fulfilment
and service will increase
as a connected, seamless
experience becomes an expectation
rather than a desire. In
response, Click & Collect
and multi-ship have been
rolled out. Future developments
are being scoped.
------------------------------------ -------------------------------------
Brand customer Failure to manage and promote Brand strategy in place
experience the brand which could result which fully articulates
in loss of market share. cardfactory brand proposition
and strategic framework
to elevate the brand's
key attributes and to create
clarity around the omnichannel
proposition with cross
channel campaigns being
developed to support awareness
and growth including celebrate
life's moments.
We have significantly improved
customer insight and data
which is shaping our thinking
and decision making across
the business and we have
invested in, trialled and
launched a customer Service
Excellence programme, which
will continue to evolve.
Market data shows that
cardfactory has been successful
in retaining and attracting
customers through the strength
and value for money we
offer coupled with an increase
in range and sales of gifts
and celebration essentials.
Additionally, the communication
plan has a focus on investor
relations with an increased
focus on working with Corporate
Affairs agency to proactively
tell the cardfactory story.
See the 'Our brand' section
on pages 12 and 13 of the
Annual Report for further
information on our activities.
------------------------------------ -------------------------------------
Operational Risks
Enterprise Undergoing a design and To minimise these risks,
Resource phased implementation of we have successfully completed
Planning a new ERP systems to replace the initial implementation
(ERP) aging core IT infrastructure. phase, which encompassed
implementation This process carries inherent finance and master data
risks, including potential without any material disruption.
business disruption, data
loss, inability to achieve We have also restructured
expected benefits, and the project to adopt a
failure to provide the more incremental approach,
necessary foundation for which allows for smoother
executing our strategic transitions between phases,
plan. Key aspects of this reduced reliance on vulnerable
plan include developing legacy systems during peak
an omnichannel customer trading seasons, and enables
experience, enhancing engagement the achievement of critical
with retail partners, and strategic plan components.
driving operational efficiencies Furthermore, we have increased
in stores. our focus on business process
engineering, dedicated
resources and change management
strategies to support a
successful ERP implementation.
------------------------------------ -------------------------------------
IT infrastructure Unsupported and legacy The IT strategy implementation
and security software, some of which includes ongoing specialist
is subject to material support for legacy systems
tailoring, requires ongoing and migration to new systems,
support to maintain functionality including the ERP implementation
and significant transactional with dedicated teams in
volumes. There is a reliance place to manage the transition.
on IT systems to support
all operations, which could Cyber expertise is employed
be exposed to cyber risk. within the business and
appropriate cyber controls
are in place. Plans designed
to continue to address
multiple cyber risks, alongside
further risk mitigations
arising from replacement
of legacy systems, are
also in place.
------------------------------------ -------------------------------------
Business Prolonged loss or server A business continuity and
continuity disruption to Printcraft disaster recovery plan
print and production facilities, is in place, which includes
web fulfilment centre and the use of alternative
supply chain. suppliers for any impacted
production processes.
In relation to online fulfilment,
any short-term outages
can be mitigated by adjustment
of delivery times for online
orders. Business continuity
plans are in place, which
include the use of third
parties.
Planning permission has
been obtained and groundworks
completed on an additional
building to create capacity
for online fulfilment,
to relieve capacity constraints.
------------------------------------ -------------------------------------
Supplier Supplier CSR breach resulting Processes for suppliers
CSR breach in a potential breach of to agree to appropriate
legislation (eg. Modern standards, which are subject
Slavery, Anti Bribery & to regular audit and inspection
Corruption) and for products by cardfactory teams (or
supplied (eg. Safety and receipt of alternative
labelling standards), which adequate independent report)
could damage cardfactory's to validate compliance,
reputation and reduce sales. with a strict 'no audit
- no order' policy adopted.
Testing and pre-shipment
sampling of production
models is being undertaken.
All product testing and
quality control inspections
is undertaken by authorised
accredited providers. A
dedicated quality control
team is in place to test
pre-shipment sampling of
production models.
The risk profile for most
suppliers to Getting Personal
is significantly lower,
with limited supplies from
the Far East. Plans are
being developed to extend
the quality control and
technical teams' scope
to include these suppliers
with adoption of appropriate
requirements to mitigate
risks.
------------------------------------ -------------------------------------
Retail partner cardfactory may not realise A business development
exposure the growth in profitable team has been formed to
revenue from retail partners, build relationships with
which is a significant existing partners and develop
component for future growth a pipeline of future partners.
of the business and the
brand or reputation could Brand standard requirements
be damaged by the actions are in place to provide
of retail partners. a clear framework for partners,
with regular reviews adopted.
Enhanced requirements will
be incorporated in any
future retail partner requirements.
------------------------------------ -------------------------------------
Financial Risks
Geopolitical Geopolitical instability Suppliers:
instability leading to - Diversifying the supply
restrictions on trade base by bringing more production
Suppliers: Operating with back to the UK while also
a supply base whereby we exploring other geographical
have the total business territories.
or specific categories - Buyers have extensive
solely dependent on industry knowledge, know
one supplier, region or of alternative suppliers
country carries significant if mitigation needs arise
stock supply risk. China and manage any supply issues
remains our biggest supply or problems.
route. Customers: Moving supply
Customers: Restrictions to new territories and
on supply from certain using UK-based suppliers
countries may impact availability (non-exclusive product)
and retail selling prices. will mitigate the supply
Geographies and governments: issue at the shelf edge,
New legislation and import but could potentially drive
tariffs may force resourcing increased cost, with price
decisions. elasticity assessments
to provide insights on
consequences of future
price increases.
Geographies and governments:
Continual review of the
import tariff duties and
'live' government legislative
changes to ensure we are
always sourcing from the
best source to support
the overall business.
------------------------------------ -------------------------------------
Directors' Responsibility Statement
The Annual Report and Accounts 2023 contains a statement of
directors' responsibility by Darcy Willson-Rymer, Chief Executive
Officer, by order of the Board in the following form:
"We confirm that to the best of our knowledge:
-- the financial statements, prepared in accordance with the
applicable set of accounting standards, give a true and fair view
of the assets, liabilities, financial position and profit or loss
of the Company and the undertakings included in the consolidation
taken as a whole; and
-- the Strategic Report includes a fair review of the
development and performance of the business and the position of the
issuer and the undertakings included in the consolidation taken as
a whole, together with a description of the principal risks and
uncertainties that they face.
We consider the Annual Report and Accounts, taken as a whole, is
fair, balanced and understandable and provides the information
necessary for shareholders to assess the Group's position and
performance, business model and strategy."
Related Party Transactions
Details of the only material transactions with related parties
during the financial year ended 31 January 2023 are set out in note
28 of the financial statements on page 142 of the Annual Report and
Accounts.
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END
ACSSFFFDUEDSEDI
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