Card Factory (LSE:CARD) reported revenue of £260.8 million for the first half, an increase of 5.3%, supported by its store operations, international activities and digital business.
Statutory profit before tax increased during the period, reflecting improved store margins and working capital management.
Adjusted profit before tax declined slightly as the group continued to invest in its digital operations and international expansion.
Card Factory generated positive cash flow during the first half, a period that the company said has traditionally been weaker for cash generation.
The group increased its interim dividend and continued a £15 million share buyback programme. Management also maintained its expectations for the full financial year.
Card Factory Expands Party Range and International Operations
During the period, Card Factory continued to manage its store portfolio and rolled out a new party product range as part of its expansion beyond greeting cards.
The company also reported growth in the Republic of Ireland and through its wholesale partnerships.
These include relationships with The Reject Shop, Aldi and Garlanna, through which Card Factory distributes products outside its directly operated store network.
Funky Pigeon Integration Progresses
Card Factory continued the integration of Funky Pigeon, reporting increased digital sales and customer growth within the business.
The acquisition has expanded the group’s digital presence alongside its existing physical store network.
Management said UK like-for-like trading trends were improving ahead of the Golden Quarter, which includes the important Christmas trading period.
The group is also implementing its Simplify & Scale programme, which is intended to improve efficiency across the business.
Card Factory continues to target a larger share of the broader celebrations market through its greeting cards, gifts, party products and digital operations.
More About Card Factory
Card Factory plc is a UK specialist retailer of greeting cards, gifts and celebration-related products.
The group operates stores across the UK and Republic of Ireland alongside digital operations including Funky Pigeon. It also distributes products through international and wholesale partnerships.
Card Factory estimates the broader celebrations market in which it operates at approximately £14.9 billion.
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