Card Factory Dividends - CARD

Card Factory Dividends - CARD

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Stock Name Stock Symbol Market Stock Type
Card Factory Plc CARD London Ordinary Share
  Price Change Price Change % Stock Price Last Trade
3.00 4.99% 63.10 16:35:04
Open Price Low Price High Price Close Price Previous Close
61.00 60.20 63.30 63.10 60.10
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Industry Sector

Card Factory CARD Dividends History

Announcement Date Type Currency Dividend Amount Period Start Period End Ex Date Record Date Payment Date Total Dividend Amount

Top Dividend Posts

roxburyhouse: Is this the main board for the Card Factory? Seems very quiet? Anyhow here is a copy of what I posted earlier on the Lse chat and wondered what you guys thought? As most here will know, Dean Hoyle and his wife are the founders of the Card a factory. He is currently the chairman of The Works but as per the latest RNS a couple of days ago (copied below) he has handed his notice in and leaves in September. Nobody knows where is is going but wouldn’t it be just great if he came back to CARD. Look at his job description. Perfect. “Following seven years' involvement with The Works, Dean Hoyle has notified the Board that he intends to step down as Chairman following the Company's AGM in September 2021. During his time as Chairman, The Works has undergone significant growth, including the opening of over 200 new stores and the development of our profitable online store and multi-channel offering. “
bbonsall: Prokartace What basis have you priced a rights issue at 42p? Much more likely that CARD will see how business picks up and how much profit is likely before even having to consider a rights issue. Remember they are highly cash generative which is no longer being paid in dividends. A large part of the £70 million may yet be met out of profits. Meanwhile, when the penny drops, the share price will rise considerably IMHO. This may even be what promoted Darcy to make her recent purchase, knowing how much upside in the share price there is.
rovi70: Card Factory, the UK's leading specialist retailer of greeting cards, dressings and gifts, today issues an update regarding the timing of publication of its results. The Company's preliminary results for the 12 months to 31 January 2021 will now be released on Thursday 10 June 2021 (previously Tuesday 8 June 2021). This delay has been agreed by the Board, following a request from its auditors, KPMG LLP, in order to provide KPMG sufficient time to complete the audit process following disruption caused by the Covid-19 pandemic.
wiseman1967: I think you will find it is a bit of both. Card Factory and Moonpig both have 340m shares in issue and 150m GBP of debt which makes a direct comparison easy. Card shares closed at 61.5p whilst Moonpig closed at 414p. On an EV basis, Card is worth 360m to Moonpig's 1550m. Pre pandemic Card had four years of ebitda between 80-100m, taking the latest figure, 80m, it trades on a pandemic look through ebitda multiple of 4.5x. Meanwhile, the last ebitda for Moonpig was 44.4m GBP (April 20), it may hit 80m this year but I expect it to settle back to say 65m after Covid. That is an ebitda multiple of 23.8x. CF online offer is currently less good than Moonpig but has more growth potential as a result. Which would you rather buy?
purevalue: I have been a holder of Card Factory stock for the last few months and strongly believe there is a positive outlook, not just due to store reopenings but due to its nascent online play and potential for a hybrid model using its store base. On the store side, I generally agree with the conclusions in the report published in mid February ([...] Since that report there have been further announcements that I believe will affect the stores in the short run (positive) and long run (negative). Short run: Provide upto £10m of additional profit and cashflow in the short term (£4m from store grants and £6m from historical tax deductions - £2m for each of the last 3 years) Long run: Potential headwinds with increased minimum wage, corporation tax rates, changing preferences built during lockdown and uncertainty over the future of business rates. In spite of this, I would expect that on the store side alone, we should expect a return to a pre-covid level of at least 80-100p. However, I don’t think enough emphasis in being out on where Card Factory could be from an online perspective, particularly in personalised cards where Moonpig is the dominant player. The Moonpig IPO prospectus has a decent report on the market by OC&C (Strategy Consultants) which I would recommend reading: hxxps:// - p48 onwards. Moonpig are currently worth £1b on an expected online revenue of c.£350m (12 months to April 2021), net profitability of 15-20% and growth of 50-100% (100% during COVID lockdowns). Card factory showed online revenue of £13m in the 6 months to July 20 with a margin of 4% and growth of 64%. This didnt include the impact of the new website (launched in July 20) and low margin due to sales of non-personalised cards. The new website seems to be pushing personalissed cards and performing well based on proxy metrics below. I woudl estimate FY online revenue of £40m with a margin on new business of at least 10-15%. Regardless of the the level, I believe that with the right strategy, there is huge potential to catch up with Moonpig and utilise some of the structural advantages that Card Factory offers. I looked at a few proxies to evaluate the relative potential: Site ranking: Card Factory’s online site has a ranking of 145k vs 24k for Moonpig (lower is better). This has improved by 30% since the beginning of Februrary whereas Moonpig has stayed flat. Facebook: Card Factory has 65k followers vs 170k for Moonpig. This is despite the Moonpig page being 6 years older. Card Factory has also seen increased activity over the last few months. Trustpilot: Card Factory and Moonpig have similar rankings (CF at 3.9, Moonpig at 4.2). Moonpig does have a greater number of reviews but this is mainly due to their proactive approach. Card factory hasn’t even claimed their Trustpilot page which means they cannot contact customers to write a review. If looking at only organic reviews, Card factory has already overtaken Moonpig since the beginning of the year. CF had c2,000 organic reviews in Jan+Feb whereas Moonpig had c.600.  With a strategic hire who understands digital marketing and a clear online strategy, there is huge potential to build on this momentum: There are a numbers of reasons why I believe this a clear online strategy could even lead to Card Factory beating Moonpig at its own game: 1 - App and website performance is on par with Moonpig and pricing is currently c5-10% lower. 2 - Card factory already has consumer brand recognition which would lead to reduced digital marketing costs. 3 - Advantage of stores for a hybrid model. There are plenty of ways the company can leverage its store base to build an advantage over online players A) Cross selling - there is a great opportunity to sell personalised cards delivered directly to the recipient through the store through either a machine or an iPad after customers have browsed what they want in person. With the super deduction on capital investment in place, this could be a no-brainer and have the added benefit of increasingly profitability. B) Last mile delivery - One of the biggest issues online players face is the last mile delivery (you can even see this through negative feedback for both Card Factory and Moonpig). The new CEO, Darcy Willson-Rymer implemented a partnership with Uber Eats at whilst at Costcutter. I can see a similar partnership with Deliveroo/Uber generating great traffic for last minute cards and gifts through the existing 1000 stores. If they could do this with personalised cards in key locations as well this would be a game changer.
makinbuks: CARD and the banks can all see when the shops are going to open again. What they don't know is how well trade will recover. The key question is how quickly can they get back inside the covenants. A rights issue will be a part of that model. Obviously the bigger the rights issue the less risk there is in the assessment of the trading prospects. Moonpig is a double edged sword. On the one hand it is a threat to the high street model and on the other it shows the potential online market that CARD could access. Remember CARD is a card producer too so there is scope to partner with other online retailers too
overeager: I would expect a combination of a small rights issue (which is likely to be strongly supported) and a small interest rate increase. If the banks were going to pull the plug they would have done so some time ago. The fact is, the business has managed to make a cash profit all through the pandemic, even with the stores closed. It has also transformed the online offering. In fact, it is poised to make a strong recovery. I have to thank Moonpig for putting me on to this. I looked at the float prospectus and could not believe that what is basically an online printing business making very modest profits was being valued at £1.25 Billion. (My most optimistic valuation as to what I personally would pay was £250m.) However, that prompted me to look at CARD. If CARD were to use some money on slick online marketing, I honestly don't think there is much to choose between Moonpig and CARD apart from the fact that CARD has a good high street presence - and in my opinion, most people can't wait to switch off their laptops and get out into the real world. I also see in the Sunday papers that this week's budget is likely to include multi billion pound support for the high street. Time will tell if I'm right.
wiseman1967: Minerve - I am not yet arbitraging Moonpig as it's maiden results could be strong given the continued lockdown keeping its competitors stores shut. As for the long term advantages of CF I see them coming from vertical integration (capturing the design, printing and retail margin), its scale (1,000 shops and 250m+ card sales each year), and its everyday low prices (that are 1/3 of it high st and online competitors). Absent the pandemic I don't believe they have a long tail of unprofitable stores and store level profitability and ROI is strong. I have never used a home made card option delivered by Amazon but a quick look on the Amazon website suggests the cards are expensive. There is always the danger that card quality is poor from a mom & pop Amazon retailer.
minerve 2: Wiseman Thanks for the reply. Don't worry, I'm just teasing on the AA. I'm not a great fan of EBITDA, I'm old school Buffett. ;) But yes, I understand your point of view. Are you arbitraging Moonpig? I generally look for long-term investments. I don't see what durable competitive advantage Card Factory have. Yes, vertical integration is a point they like to promote but when you have a marketplace of home businesses selling cards on Amazon utilising Prime to deliver to your door for 'free' I don't see how Card Factory can compete. I like the fact Card Factory have the convenience of instant purchase when perhaps out grocery shopping but even then convenience stores have their own cards for sale. Good ROE, ROCE, CROCI, Gross Margin etc.. but has done nothing to post tax profit for the last 5 years. Maybe a short-term undervalue play here but nothing with long-term promise that I can see. I'd like to be persuaded otherwise.
wiseman1967: Minerve/Kaos - What I like about Card Factory is that it is the clear market leader (in physical card shops), vertically integrated, highly cash generative with strong gross margins (especially on cards), some 80-90% of cards sell for under one pound and it is undervalued by the public markets. The business has a temporary issue in that COVID restrictions means the stores are shut and this has caused leverage to be high relative to ebitda. But the quantum of debt is not excessive once stores reopen and run rate ebitda tends back to 80m gbp. The other thing I find interesting is that Moonpig and Card have similar amounts of debt but the MCap of one is 1450m gbp whilst the other is 100m gbp.
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P: V: D:20210726 22:19:52