Sparks - Card Factory

Card Factory’s strategy of expanding into new and adjacent product categories and new geographies is evident in its FY25 results, with c 6% growth in revenue and adjusted PBT, nicely meeting our forecasts. The company’s success in entering new product categories is clear, with outperformance versus a weak celebrations market.

In online, the company has decided to close gettingpersonal.co.uk, which has been a drag on group performance for a while and is focusing on personalised print on demand, as well as other premium and personalised celebrations products.

There is a confident tone about the outlook, with management expecting continued good growth in adjusted PBT in the mid-to-high single-digit percent range in the coming year. This is despite the increased costs from the National Living Wage and employer national insurance contributions. Management also anticipates no material impact from tariffs on its results in the coming year, which should be helpful for sentiment relative to many other companies.