Walked past my local Card Factory this morning at 10.30 and it was packed.
The Works (about 3 doors down) looked steady, but much quieter.
ShoeZone about 7 doors away looked quiet.
Not a ramp as I am in all 3 with varying levels of confidence. High for Card and Shoe. Nervous about The Works.
My guess was about 30 customers in Card, first thing on a Monday morning. |
I have, or should I say had, both CARD and MOON. I have put all my eggs in one basket. Sold MOON for a good profit and averaged up in CARD |
I would prefer it to continue rising until January and not just hold.
It has always been worth a lot more since the end of Covid. |
Looks like a return to the one pound region (hopefully will hold pending results in Jan) |
I don't see it like that. If it had been a sale of 20k shares I doubt that that would have been seen as insignificant given the timing, although if there was no immediately preceding news then maybe. |
Sorry, I couldn't leave those typos in at the end :) :
I believe they have only stated facts. There is a clear valuation difference, and those are the profit figures. I'd say they operate in different segments but I'm not sure why you're upset by people.stating facts.
This company is selling very cheaply, as it was at 1.40. I'm quite surprised it didn't climb back up now they will be growing profits this year exactly as the market thought then.
The US acquisition was strategic, so I guess,when the y27 plans are seen through, there will be scope to more than double the dividend. This is a cash machine and very well operated.
I can't believe we're trading in what will be an almost certain pe of 5-something for next year and 70mil+ pbt is looking very likely the year after. Crazy value. It could double and still not have a premium on a fair price. |
I believe they have only stated facts. There is a clear valuation difference, and those are the profit figures. I'd say they operate in different segments but I'm not sure why you're upset by people.stating facts.
This company is selling very cheaply, as it was at 1.40. I'm quite surprised it didn't climb back up now they will be growing profits this year exactly as the market thought then.
The US acquisition was strategic, so I guess,when the y27 plans are seen through, there will be scope to more than double the dividend. This is a cash machine and very well operated.
I can't believe we're trading in what will be an almost certain people of 5-something for next year and 70mil+ is looking very likely the year after. Crazy value. It could double and still not have a premium on a fair price. |
Quite a calculated little crowd aren’t you. |
ACTS
Yes, I have said similar many times before.
Moon EPS is 10p and share price is nearly 270p so PE multiple is 27
CF EPS is 14p and share price is 96p and so PE multiple is only 6.9
A very unreasonable difference AND CF is paying a dividend of 4.5p and Moon pays zero. |
Moon market cap 2.74x that of CARD. Incredible differential. |
 £25m Garven Holdings acquisition marks physical entry into biggest global market
America is the next destination for Cardfactory as the greeting card retail giant has taken over gifts and celebrations company Garven Holdings for £25million to expand its international operation and secure a physical entry into the US.
As chief commercial officer Adam Dury prepares to leave the business, one of his last major tasks has been to assist with the strategic acquisition of the business that trades as Garven Design and Cadence Packaging, based in Minnesota.
The move marks Cardfactory’s physical entry into the US gifts and celebration essentials sector, which represents the biggest market globally, valued at around £70billion, and the £25m was paid on completion of the deal on Wednesday, 4 December, funded from existing cash and debt facilities.
Cardfactory CEO Darcy Willson-Rymer said yesterday, 5 December: “The acquisition of Garven is an important strategic milestone in our partnerships strategy. Together with our separate wholesale supply agreement covering over 1,100 stores across the US, it establishes a physical presence in the US market.”
With Cardfactory already having a presence in South Africa, Ireland, Australia and the Middle East, Darcy added that this US acquisition “accelerates our partnerships strategy in one of our key international target markets”.
Chief operating officer Anne Schulze and chief financial officer Walter Jungbauer will continue to manage the Garven business, which has an established customer base of general and speciality retailers and will allow Cardfactory, which has over 1,070 stores in the UK and Ireland, to further explore design and buying synergies, alongside opportunities to introduce its own ranges into the US wholesale market.
Darcy added: “Over a number of years Garven has built a reputation as a trusted brand known for its quality products and impressive design capabilities, with Anne and Walter building an excellent customer proposition.
“We are excited to welcome the Garven team to Cardfactory and look forward to building upon their existing commercial relationships, as well as forging new ones.
“International partnerships are a key component of our growth strategy. This acquisition is a key step in delivering the growth from partnerships as we guided at our capital markets update in May last year. Garven represents an exciting opportunity for Cardfactory to build scale in the world’s biggest celebration occasions market.”
This acquisition comes less than three months after Cardfactory bought Irish card company Garlanna from founders Alan and Jackie MacNamee.
In an update, the company said trading in the second half of the financial year to date has been in line with expectations and “we have been encouraged by the start of the Christmas season”, while the programme of productivity and efficiency savings announced at the interim results in September remains on track, with expectations for the full year “unchangedR21;.
Adam, who has been the trade-facing frontman of Cardfactory since he joined as CCO five years ago, leaves the business this month to become chief operating officer at pet retailer Jollyes in January where CEO Joe Wykes described him as among the “best talent in British retailing”. |
CFO purchase amounts to 20 grands worth at 94.144p (21244 shares), not going to set the world alight but adds a small degree of confidence.
Morningstar Stock Report:
Card Factory PLC - Wakefield, West Yorkshire-based greeting cards and gifting firm - Buys Garven Holdings LLC, a Minnesota gift and "celebration essentials" designer and wholesaler which trades as Garven Design and Cadence Packaging, for USD25 million. Deal was completed on Wednesday and funded from existing cash and debt facilities. Based on current sales, the acquisition represents around 5% of total revenue, with negligible benefit to be realised in the remainder of financial 2025.
Says the deal will allow it to "further explore design and buying synergies, alongside opportunities to introduce its own ranges into the US wholesale market". In addition, says second-half trading has been in line with expectations, with an encouraging start to the Christmas season. Its programme of productivity and efficiency savings, announced in September, also remains on track. Full-year expectations are currently unchanged. Chief Executive Darcy Willson-Rymer says: "This acquisition is a key step in delivering the growth from partnerships as we guided at our Capital Markets Update in May last year. Garven represents an exciting opportunity for Card Factory to build scale in the world's biggest celebration occasions market."
And the II closing report:
In small-caps, Card Factory gained 7.9%.
The Wakefield, England-based greeting cards and gifting retailer announced its USD25 million takeover of Garven Holdings LLC, a Minnesota gift and "celebration essentials" designer and wholesaler which trades as Garven Design and Cadence Packaging.
"After months of UK-listed companies receiving takeover bids, it's refreshing to see two companies sitting on the other side of the table," AJ Bell's Coatsworth said.
The Garven takeover is "the next step in Card Factory's efforts to diversify its income stream beyond the sale of cheap greetings cards.
"Its UK stores have slowly given more shelf space to items like balloons and teddy bears, and now there is an opportunity to learn more about this market from an established US player. It will also open doors to potential design and buying synergies across the group." |
This is on Linkedin about Garven They have some big name customers!
Info
Garven Design Group is a leader in the gift packaging, stationery, novelty gifting and wall decor categories. Our core customers include Walmart, Target, Amazon and several other major retail partners. |
That's a bit naughty putting a trading update in an acquisition RNS and no mention in the title. |
Yes good news indeed.
I've not long woke up (in America of all places) to the expansion news,
Great that guidance was also mentioned.
I'm glad I held on to CARD, I was about 1.5 p away from my mental stop 2 weeks ago having bought at c. 96p
P. |
I wonder what got the team interested in this, out of all the other stocks on the market. Hut group had the same attention until recently. |
Analysts at UBS said these assurance 'should be taken well by the market'. They added: 'As it stands, shares are trading at a 40 per cent discount to their 10-year historical average despite offering a stabilised core business with material upside potential from geographical expansion.' |
Yes another good sign:
cardfactory has been notified that on 5 December 2024, the Company's CFO, Matthias Seeger purchased, in aggregate, 21,244 ordinary shares of 1 pence each in the capital of the Company ("Ordinary Shares") at a price of 94.144 pence per share. |
#7073
From the half year report;
’ Entry into the US market secured through a nationwide wholesale retail partnership which will roll out in time for Christmas.’
It would be good to get a bit more meat on the bones which will come at full year I presume. |
I was certainly not expecting any mention of in line with expectations and a likely modest miss for FY. The trading update and CFO purchase today has restored my belief that Darcy could be one of the most savvy retail leaders around. Absolutely delighted to see the update, particularly given my prior expectations for a non trivial, but modest, miss. |
CARD CFO has made a director purchase. |
The wording isn't particularly clear:
"The acquisition of Garven is an important strategic milestone in our partnerships strategy. Together with our separate wholesale supply agreement covering over 1,100 stores across the US, it establishes a physical presence in the US market."
Either there is a completely separate wholesale supply agreement (which could be expected to require another RNS) or the acquisition of Garven has enabled them to negotiate another wholesale agreement via Garven's resellers.
The RNS above doesn't directly reference the wholesale agreement, it's only in the CEO comments at the end. Clarification required perhaps... |
Good point Sphere25, I read it as more than was flagged as well. |
Am I correct in seeing this announcement as saying that this acquisition is in addition to a separate wholesale agreement allowing access into all USA states?
In other words this is an extra bonus and crucially self funded and gives physical presence in the US. A brilliant move!
This hasn’t yet been understood. If I am correct the market thinks this is the expected announcement of who the US partner is. |
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