Card Factory (CARD) investor relations material

Executive summary

• Group revenue grew 5.3% year-over-year to £260.8m, driven by digital (Funky Pigeon acquisition) and wholesale partnerships.

• Adjusted EPS rose 1.6% to 2.9p; adjusted PBT was £12.7m, broadly flat due to planned digital and international investment.

• Core store profitability improved despite lower UK footfall and like-for-like sales, supported by higher product margins and cost discipline.

• Free cash flow over 12 months was £47.8m, up £9.9m year-over-year; adjusted free cash flow for the period was £0.8m, a £7.1m improvement.

• Interim dividend increased 7.7% to 1.4p per share; share buyback program 83% complete.

Financial highlights

• Group sales reached £260.8m, up £13.2m (5.3%); digital sales rose £12.8m, mainly from Funky Pigeon, with digital revenue up 398%.

• Store sales declined £1.8m to £226m; UK like-for-like sales down 2.0–2.3%, offset by new stores and strong Ireland performance (+5.6% LFL, +24.3% total sales).

• Store EBITDA increased 5.7% to £50.4m over 12 months; segment EBITDA: Stores £51.2m, Digital -£4.1m, Wholesale -£0.1m.

• Capital expenditure was £11.8m (vs £7.6m prior year), focused on manufacturing and digital integration.

• Net debt rose £8.5m to £87.4m, mainly due to Funky Pigeon acquisition and shareholder returns; adjusted leverage at 1.1x.

Outlook and guidance

• Confident in delivering full-year expectations, supported by new product ranges, value initiatives, and operational improvements.

• FY 2027 adjusted PBT expected at £54.0m–£59.0m, with performance weighted to H2 and Christmas.

• FY 2027 free cash flow expected to exceed £30m, with capital expenditure returning to £20m–£25m range next year.

• Targeting mid-single digit group revenue growth and mid to high single digit adjusted PBT growth over the medium term.

• No reliance on sharp footfall recovery; plans built on basket value and operational execution.