Card Factory swings to loss on as Covid store closures tear up revenue

(Alliance News) - Card Factory PLC swung to an annual loss after a heavy fall in revenue in a ...

Alliance News 10 June, 2021 | 10:52AM
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(Alliance News) - Card Factory PLC swung to an annual loss after a heavy fall in revenue in a year when stores were closed for an average of five months due to the pandemic, it said on Thursday.

For the financial year that ended January 31, the greeting cards retailer posted revenue of GBP285.1 million, plummeting 37% from GBP451.5 million, as government-ordered store closures decimated sales.

The Wakefield, England-based firm swung to a pretax loss of GBP16.4 million from a GBP65.2 million profit the year before.

The impact of the pandemic was partially offset by strong growth in online revenue, Card Factory said, up 42% to GBP27.6 million, with online demand continuing above pre-pandemic levels. The company's business model made it "well placed to respond positively to the changing retail environment", it added.

"We have successfully reopened our entire store estate following the third lockdown and delivered a reassuring performance in stores, whilst maintaining online momentum," commented Chief Executive Darcy Willson-Rymer.

"Our powerful brand and unique business model means we are well placed to respond positively to the changing retail environment and to unlock the inherent potential in this business."

A refinancing in May saw Card Factory agree new GBP225 million debt facilities which it said provides resources for future growth.

No dividends were declared for the year, Card Factory having declared a 7.9 pence per share total dividend for the year before.

Shares were trading down 2.1% at 65.43p each in London on Thursday morning.

By Will Paige;

Copyright 2021 Alliance News Limited. All Rights Reserved.

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Securities Mentioned in Article

Security Name Price Change (%) Morningstar
Card Factory PLC 59.60 GBX 1.36 -

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