Card Factory up on delivery of maiden results
DISCOUNT greeting card shop Card Factory reported its half-year results yesterday, showing underlying profits that grew 9.3 per cent, but an overall £7.9m loss due to the costs of its initial public offering (IPO) in May.
Revenues during the six months to 31 July rose 8.9 per cent to £149.4m on the back of an increase in like-for-like sales growth in existing stores and the roll out of 36 new stores.
“The continued growth and further improvement in our retail proposition is particularly satisfying given that this was achieved during a period in which we completed the IPO process,” said chief executive Richard Hayes.
“This reflects the strength of the whole Card Factory team and their support and commitment is greatly appreciated and valued by the board.”
On costs associated with the firm’s IPO, £3.6m was charged to the income statement and £1.6m was recognised within share premium as costs directly related to the issue of new shares.
Card Factory, which was previously owned by private equity house Charterhouse, raised £90m from its float earlier this year. However, after pricing its shares at 225p, they tumbled to as low as 205p and continue to trade below their listing price.
“Having completed our flotation on the London Stock Exchange earlier this year, it is pleasing to report a strong set of maiden interim results,” added Hayes.
“We continue to deliver on each of our four pillars of growth – growing like-for-like sales; rolling out new stores; delivering business efficiencies; and increasing our online business.”
Card Factory’s shares rose 2.14 per cent on the news yesterday to close up at 215p per share.