Card Factory PLC Reports Strong Financial Performance and Resumption of Dividends

Card Factory PLC has released its preliminary results for the year ended 31 January 2024, showcasing strong growth and strategic delivery. The company's revenue for FY24 was £510.9 million, marking a 10.3% increase from the previous year. EBITDA grew to £122.6 million, and profit before tax (PBT) saw a significant rise of 25.2% to £65.6 million. The Group's net debt, excluding leases, decreased by 39.9% to £34.4 million, reflecting a strengthened balance sheet.

The company's key highlights include a 7.6% growth in like-for-like (LFL) revenue, driven by a strong store performance and positive traction in online sales. The acquisition of SA Greetings contributed £10.4 million in revenue, in line with expectations. EBITDA growth was attributed to a one-off release of Covid grant provisions and ongoing investment in capability and capacity.

Card Factory PLC also reported a successful completion of refinancing, with a £125 million revolving credit facility (RCF) and a reduction in net debt. The company recommenced dividends, with a recommended dividend of 4.5p per share for FY24, in line with its updated Capital Allocation Policy.

The company's consistent delivery against strategic priorities was evident in its strong store performance, with 26 net new store openings during the period, bringing the total UK & Ireland estate to 1,058 stores at year end. The store evolution programme optimized space and balance between card, gifts, and celebration essentials, contributing to strong LFL growth in gifts and celebration essentials of 9.8%.

Card Factory PLC's leadership in the card market was demonstrated through innovation and range development, resulting in a 4.8% LFL growth in card sales. The company successfully implemented card pricing architecture to maintain its value-for-money credentials and low entry price points.

Overall, Card Factory PLC's FY24 results reflect a robust financial performance, strategic advancements, and a strengthened balance sheet, allowing for the resumption of dividends and indicating positive momentum for future growth.