Card Factory Share Discussion Threads

[fenners66] 12/6/2020 13:49

Capex spend on printing and packing and reduced headcount - good.
Attempting to bring more prodn in house - shortening supply chains may be politically good.

But it has to be lower cost - is this all about exchange rates ?
Can higher year on year wages compete with far East production ?
Cost of shipping falling ?

[fenners66] 12/6/2020 13:46

"This year cost pressures continued, with National Living Wage increases, higher card payment fees and storage for increased stock levels."


Increased stock levels ??!!!

But you just said you were making efficiencies from EPOS data ?

That is INCONSISTENT as EPOS data should deliver reduced stock levels !

[fenners66] 12/6/2020 13:38

"We now expect to open seven new stores in 2021, being those which we are already legally committed to and will revise our plans as appropriate. The overall scale of the store roll out programme will be considered as we assess the implications of Covid-19 on store trading. "


Ha ha - I like that bit - touting growing store numbers ... growth
Whilst admitting the only reason they are opening new stores is because they Legally Have To.

6 month review of stores include "downsizing"

I'm sure the next one should.

[trad3m3] 12/6/2020 13:36

Wake up good people!!! Look what is going on around you and the world! We are heading towards massive collapse of all economies, unraveling right in front of your eyes! Invest wisely while you still can!!! I will not make any recommendations instead please use your common sense! Don't get whipped out!

[fenners66] 12/6/2020 13:33

"increasingly aggressive competition. " - cant argue with that.


"In FY20, we continued to make good progress against our established four strategic pillars"

"Card Factory LFL sales were -0.5% (FY19: -0.1%)"

What part of -0.5% vs -0.1% is making good progress ?

Are we back to Comical Ali ?

Why can't they just say it like it is instead of hoping to tell us red is blue ?

[fenners66] 12/6/2020 13:29

"We are utilising EPOS information"

Really ?!

Was this CEO's report written in the 1990's ?
Are we supposed to be impressed ?

"a growing minority of shoppers now buying cards on impulse rather than in planned shopping missions."

They plan to take advantage of that with unplanned cards....... except that with CV no one will want to wait half an hour to buy an unplanned card....

Last year's ideas not this year's.... catch up.

[fenners66] 12/6/2020 13:24

First few para's of Chairman's statement contains lots of buzzwards and little substance.

"Covid-19 global pandemic will only accelerate changes in customer behaviour and present opportunity and challenge in equal measure"

No it will not.
Its a road block - opportunity is for healthcare companies not card retailers.

"currently we do not expect to pay any dividends in relation to FY21." - woken up and need to pay off new debt.
Another Woodford /Invesco high yield nightmare share - look at CLLN and DEBS and IRV all gone.

[fenners66] 12/6/2020 13:16

"Adjusted' APMs have been included to aid comparability"

Because the usual performance measures are an embarrassment and are hardly likely to convince that management deserve a massive bonus ?

Interserve (if memory serves) awarded themselves a massive bonus for putting off insolvency for 6 months..... always with the best interests of shareholders at heart....


"we do not think it is appropriate to provide financial guidance for FY21" - but are looking forward to sharing our "exciting plans for growth "

Put the 2 statements together - we have not got a clue about our finances and I'm sure no shareholder wants to know what our profit and loss / balance sheet might look like - but on the plus side I am so excited......

[fenners66] 12/6/2020 13:08

So I'm just jotting down some thoughts as I read the RNS:

"our teams are looking to introduce innovative ways ... including helping customers reduce the frequency of their visits, but increase the average basket value in each shop"

Innovative ? Most obvious would be increasing prices but that's not innovation.

So getting people to buy more cards.... like I see you have a B'day card , how about getting some Xmas cards with that ? Or how about buying for people who have had their B'day this year already , or I see you have made new friends in the Queue how about getting them a B'day card as well ?


So at best cannibalising future sales - but at a cost of stocking Xmas cards all year around ? Stock increase .....

New website "enable a significantly improved customer experience and the delivery of our multi-channel roadmap" looks like closing shops is on the cards... at last.

""I look forward to sharing in detail our exciting plans for growth on 28 July 2020." could end up with egg on her face when they announce shop closures....

[mallorca 9] 12/6/2020 13:02

They have also deferred money that they owe to HMRC.

So it could even be HMRC who wind them up.

[mallorca 9] 12/6/2020 13:00

Unfortunately, all of CARD's 1000 stores are leased - so they do not even have significant assets.

They are only opening circa 10% of the stores because they would have to take staff off Furlough and pay their wages themselves - they do not have the cash for that.

They are in desperate trouble - especially when the government furlough pay ends.

The leases cost circa £4m per year, interest on debt is also circa £4m per year.

Karen H has totally mismanaged this business - paying dividends and special dividends , instead of paying off debt.

Also committing to 1000 stores at a time when retail is on it's knees.

Bankruptcy looms i'm afraid.

[mallorca 9] 12/6/2020 12:51

fenner,

be sure to read re the new banking covenants.

'The Company must make all possible attempts to raise funds when debt / EBIT reaches 3x '.

[fenners66] 12/6/2020 11:49

Just caught up with 300+ posts

I will now have to read the latest results so I can assess them myself but first


lastchance - you referred to , greetings cards cannot be finished as Tom received so many.

Yes he received lots - but CARD were shut and their online sales are still tiny - so actually you are inadvertently pointing out that since supermarkets were still open - and we all go there - that's where those cards were being purchased.

Many don't want to go shopping - but have to go to Tesco etc. so get the cards there.

Also you are talking about the Banks saving profitable businesses - as if they are a charity.
They too have shareholders.
So if this remains a profitable business , but breaks its covenants - why do you think they have them ?

Clearly with very little cash inflow the debt is rising. The banks then have a duty to cut their losses so taking the business (if future profitable) in exchange for debt is an option.

That would wipe out shareholders.

Debenhams taught us that holding the debt rather than the shares can be a better bet. Ask Mike Ashley.

[sbb1x] 12/6/2020 10:54

Dear oh dear oh dear oh dear oh dear!! Nice bounce of 38pParrot wont be happy

[sbb1x] 12/6/2020 10:42

The sooner the placing is done the better.

[monte1] 12/6/2020 10:40

‘their’

[approach3] 12/6/2020 10:10

I am wondering if Mallorca could be right.

[mallorca 9] 12/6/2020 10:03

Oh dear !

Another fool !

[mallorca 9] 12/6/2020 08:08

Dear oh dear oh dear oh dear oh dear!!

Total collapse

[mallorca 9] 11/6/2020 16:58

Oh dear …. another loser !

[mallorca 9] 11/6/2020 15:40

Are you joking lol

It's the biggest faller on my watchlist and it's about to breach its banking covenants lol