Card Factory is the UK’s leading specialist retailer of greeting cards, gifts and celebration essentials. Its UK and Ireland customers are served via an extensive store estate and digital channels. Partnerships and franchises provide further access to UK and international customers.
The UK greetings card market is very fragmented, with competitors including specialist chains, grocery chains, other generalists and online operators. CARD’s value for money proposition versus its competitors is well understood by the UK consumer. The single card market is described as resilient. Historically, it has been low growth, with volume declines being offset by price growth.
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Darcy Willson-Rymer
CEO
Matthias Seeger
CFO
Forecast net debt (£m)
15.7
Forecast gearing ratio (%)
5
% | 1M | 3M | 12M |
---|---|---|---|
Actual | (15.8) | (29.5) | (18.8) |
Relative | (14.5) | (30.6) | (26.8) |
52 week high/low | 143.0p/82.0p |
Card Factory’s H125 results demonstrated good year-on-year revenue growth of c 6%, which included growth in the card category and strong growth from newer categories. Profitability declined due to the previously guided phasing of cost inflation as well as strategic investments. Management has indicated that its expectations for the full year are unchanged, suggesting strong profit growth in the second half as productivity and efficiency savings, range development and management of operating costs complement typical revenue seasonality.
Y/E Jan | Revenue (£m) | EBITDA (£m) | PBT (£m) | EPS (fd) (p) | P/E (x) | P/CF (x) |
---|---|---|---|---|---|---|
2023A | 463.4 | 111.2 | 51.6 | 12.33 | 6.7 | 2.8 |
2024A | 510.9 | 123.8 | 64.2 | 13.85 | 5.9 | 2.5 |
2025E | 545.8 | 134.9 | 67.1 | 14.37 | 5.7 | 2.4 |
2026E | 588.9 | 143.2 | 74.2 | 15.91 | 5.2 | 2.2 |