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CARD Card Factory Plc

95.60
-2.10 (-2.15%)
07 Oct 2024 - Closed
Delayed by 15 minutes
Share Name Share Symbol Market Type Share ISIN Share Description
Card Factory Plc LSE:CARD London Ordinary Share GB00BLY2F708 ORD 1P
  Price Change % Change Share Price Shares Traded Last Trade
  -2.10 -2.15% 95.60 1,495,600 16:35:29
Bid Price Offer Price High Price Low Price Open Price
95.00 95.70 98.70 94.80 98.70
Industry Sector Turnover Profit EPS - Basic PE Ratio Market Cap
Greeting Cards 510.9M 49.5M 0.1424 6.68 339.61M
Last Trade Time Trade Type Trade Size Trade Price Currency
17:07:10 O 20,000 95.60 GBX

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Date Time Title Posts
07/10/202420:36CARD FACTORY - SET FOR RECOVERY?480
07/10/202409:09CARD FACTORY - InvestorJohn6,875
15/4/202402:27CHEAPEST CREDIT CARDS RATES4
15/4/202402:26SMART to start investing in SMART CARD co.s783
19/11/202211:51CARDFACTORY - SET FOR RECOVERY?19

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Trade Time Trade Price Trade Size Trade Value Trade Type
16:07:1095.6020,00019,120.00O
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15:35:3095.603,3443,196.86AT

Card Factory (CARD) Top Chat Posts

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Posted at 07/10/2024 09:20 by Card Factory Daily Update
Card Factory Plc is listed in the Greeting Cards sector of the London Stock Exchange with ticker CARD. The last closing price for Card Factory was 97.70p.
Card Factory currently has 347,608,987 shares in issue. The market capitalisation of Card Factory is £330,576,147.
Card Factory has a price to earnings ratio (PE ratio) of 6.68.
This morning CARD shares opened at 98.70p
Posted at 26/9/2024 08:59 by haroldthegreat
I pass a Card Factory shop whenever I leave my house and I also retail cards . Their shops are bright ,clean and tidy . I feel they make a marketing mistake in putting their name on their cheapest cards . They have been doing more cut price deals this year like 3 plus one free across the board as opposed to just on specific sections and for longer . Everyone knows they sell cheap cards but does one really want to send someone a card that says on the back I am a cheapskate and purchased you a cheap.card at Card Factory? For childrens cards it does not matter . They should use another brand name on their cheapest cards .These more generous offers must have helped reductions in their profit margins .
Posted at 25/9/2024 10:54 by melody9999
Its interesting that UBS came out with such a bullish forecast and price target of 180p just 4 days before the interim results. I saw some comments on Proactive as below:

Card Factory (LSE:CARD) is currently being priced in for 'zero growth' and 'flat margins' going forward according to UBS, which suggests any positive comments in next week’s interims should give its share price a meaty boost.

“Overall, we forecast mid-single digit sales growth for the first half and c220bps EBIT margin dilution year-on-year.”

For the full year, UBS sees sales rising by 5% sales with EBIT margins down only 20bps to self-help initiatives and operating leverage.

The 2nd para refers to H1. Whilst they got the sales growth right, EBITDA margin was -3.7% not -2.2%.

This begs the question as to why UBS would make this release to the market so close to results...Egg on face. However we are where we are.

However H2 looks much more positive. The RNS points to:
Aldi multi-year agreement
Partnership in US market - roll out in time for Christmas.
Acquisition of Garlanna, a publisher and wholesaler of greetings cards, wrap and gift bags in the Republic of Ireland.

Not sure I have seen an acquisition cost but presumably this is one of the 'strategic investments' that has impacted PBT?

they also say:
There are several factors that are supporting our profit margin performance going into the second half of the year. Approximately half of the margin growth in the second half will be driven by the seasonality of sales. Our robust programme of productivity and efficiency savings will also make a material contribution. In addition, we expect to benefit from margin-enhancing range development and prudent management of operating costs.

I also note the new interim dividend of 1.2p which is another comforting factor.

With all that in mind, I kind of understand that our CEO's assertion is reasonable:
"..the strong topline performance in the first half, combined with our robust actions to mitigate inflationary pressures, means that our expectations for the full year are unchanged."

So obviously I am not happy with the share price performance, but having said that, I am prepared to accept that H2 was a blip caused by a number of things coming together at the wrong time. Indeed this was the outlook comment from the FY results back in Apr 2024:
"· The Board remains confident in the long-term compelling growth opportunity for cardfactory, and in its ability to deliver on the medium-term ambitions of £650 million of sales, Profit Before Tax margins of 14% and 90 net new stores by the end of FY27.
· As anticipated, PBT growth in FY25 is expected to be weighted toward the second half of the year due to the phasing of planned investment and inflationary recovery actions."
So no surprises then.

In conclusion .... at 110p, I suspect this is absolutely the wrong time to even think of selling ... so I'm holding tight for a much better H2 and share price recovery.
Posted at 18/9/2024 21:58 by bbonsall
Moonpig EPS is about 10p per share and its share price is £2+
CARD EPS is about 14p and its share price is £1.30.
So despite all the shops and all the labour costs CARD is still more profitable.
If CARD were to be valued in the same way as Moonpig the share price would be nearly £3
Posted at 02/9/2024 20:45 by bbonsall
It is EPS that should be driving the share price but still isn’t! The PE ratio is still only about 9 on last year’s EPS of 14p. The average PE for UK Specialist Retailers is 19. So to be in line with its peers CARD share price could easily justify £2 plus. Even more because of the strong cash flow and massive reduction in debt.
Posted at 13/8/2024 17:16 by monte1
Aussie retail expert Brett Blundy’s investment sees Cardfactory rise to 124.60p


Shares in the UK’s largest greeting card retailer Cardfactory are on the rise with a 20p climb over recent weeks – following Australian billionaire Brett Blundy’s decision to buy 8.17% of the company’s listing, making him one of the retail group’s largest shareholders.

Brett is the founder of the BBRC private investment company and he is recognised as a leading global retail expert with business magazine Forbes estimating his current wealth at £1.72billion ($2.2bn).

Above: Brett Blundy’s investment has pushed Cardfactory shares to today’s 124.60
Above: Brett Blundy’s investment has pushed Cardfactory shares to today’s 124.60
The move, made through Brett’s BBFit Investments business registered in Singapore, makes him the third largest shareholder behind the British-based pair of Aberforth Partners with 8.984% and Artemis Investment Management with 8.572% – UK shareholders own at least 55.5% of the company.

Brett’s significant purchase followed just a few days after Swiss investment company Teleios Capital Partners sold off its entire 9.92% shareholding in the retailer.

Above: Cardfactory has had concessions across The Reject Shop’s stores in Oz
Above: Cardfactory has had concessions across The Reject Shop’s stores in Oz
Cardfactory has had a presence in Australia for several years, with branded concessions across leading value retailer The Reject Shop’s entire chain.

Shares in the company, which now has 1,060 outlets as well as online, are trading this lunchtime, 13 August, at 124.60p having risen by 2.64% since yesterday, making a 5.76% increase over the past five days, and 14.29% since January 1.

Cardfactory has been on a roll since reporting its positive momentum in January which delivered double digit like-for-like sales growth to £476.9million as store revenue climbed by 7.8% in November and December 2023.

Above: The three-month graph shows a wobble around the AGM has been overcome
Above: The three-month graph shows a wobble around the AGM has been overcome
And the good news was confirmed in April with the preliminary figures for the full year to January 31, 2024, showing group revenue jumped 10.3% to £510.9m, with l-f-l store sales growing 7.7% driven by a “strong store performance”, with growth in card, gifts and celebration essentials, combined with positive traction in online l-f-l sales edging up 0.4%, as the pre-tax figures rocketed 25% to £65.6m.

At the AGM in June, shareholders showed their support for CEO Darcy Willson-Rymer when he was re-elected as a director with 99.93% of the votes cast.

The company is listed as Card Factory Plc Ord 1p on the London Stock Exchange, trading with the ticker code CARD.L, and has a market capitalisation of £421.09m with approximately 346.86m shares in issue.
Posted at 31/7/2024 18:29 by darrin1471
If BB wanted to set up a 500 store CF chain in Aus and NZ then a trip to Wakefield would be in order.
CARD is cheap today. Buy a stake in CARD. Propose an expansion into Aus and NZ using BB local executive team. CARD share price jumps. Value of BB stake jumps, funding the Aus and NZ expansion. Some sort of profit sharing deal using CARD's back catalog of designs. UK manufacturing or new Aus printing facility. Sell a 20% share placing to BB to fund expansion. BB builds a 200 store group in 3 years. BB sells it to CARD or BB buys CARD.

Pure speculation but lots of possibilities.
Posted at 29/7/2024 13:12 by kaos3
my blood pressure mimicks the card share price chart - after seing it
Posted at 23/7/2024 15:03 by aishah
Excerpts from recent Shares Magazine BUY at 98.9p (11 July issue)

Why Card Factory is a growth and income stock worth celebrating.

The value-focused cards, gifts and calendars seller has scope for expansion and has returned to the dividend list.

Seeking a cash-generative retailer with underappreciated growth prospects and a low equity valuation that suggests significant re-rating potential? Then look no further than Card Factory (CARD), the value focused greeting cards-to-party supplies seller with a modest share of a large TAM (total addressable market).

At the full year results in April, Card Factory announced a welcome return to the dividend list, having reduced net debt by 40% to £34.4 million in the year to January 2024. For the year to January 2025, Berenberg forecasts a rise in pre-tax profit from £62 million to £69 million as sales tick up from £511 million to £552 million, ahead of taxable profits of £75 million on £591 million turnover in full year 2026.

Based on forecast earnings of 14.9p and a 4.66p dividend for this year, Card Factory’s shares trade on a single digit PE (price to earnings ratio) of just
6.6 and offer a 4.7% yield. A re-rating to just 10 times forward earnings, which seems achievable in the near term, implies a 149p share price, while Card Factory’s return to the dividend trail offers a catalyst for value and income investors to revisit the name.

Canaccord Genuity says: ‘Dividends have been reinstated and strong free cash flow generation will see leverage reduce further and the group move to net cash position, paving the way for additional shareholder returns over time.’
Posted at 13/6/2024 23:43 by ggrantsu
Singers initiation note was extremely comprehensive - best I have read on Card and more information vs. Liberum and Investec. Thought the target price of 144p seemed conservative - they use comparables based multiple analysis which included B&M, WH Smith, and Moonpig. Card has much better margins than B&M and WH Smith (and marks and spencers I might add)...and revenue/EPS growth. yet it is pointed out by Singers that it trades at less than half the multiple. moonpig margins are higher but its growth outside of covid has been poor. singers points out that moonpig and card actually focus on completely different markets/demographics...their valuation in the end doesn't opt for pegging card in multiple terms with these peers, hence the 144p rather than £2 plus.

not much in the report i didn't already know; cards are a resilient product, there is a huge opp in gifting and celebrations, omnichannel opp is unique etc.

singers make a comment that partnerships, because of the group's very ambitious targets in that area, are key to the share price. i agree...and think that they have shot themselves in the foot a little bit. the targets are just so large in partnerships...why they said FY27 was the year these needed to be met, who knows? i just think that given the lack of communication on this part of the business, it may not be reached by FY27. that is a shame as all the other great stuff going on here could be totally overshadowed if they have got their time horizon for targets wrong - the market hates when internal targets aren't met and it doesn't matter how well everything else is going. even more of a shame given how the partnership stuff they are going is obviously really working e.g. the reject shop wholesale model in australia saw card get that outfit get to no.1 in cards in australian within 2 years. its very impressive.

my view still stands: this business would be best served by being bought out by PE. just feels like its perhaps one where the listed markets may never be very kind to it? either way, increasing position down at these levels. the thing that comes through in singers (and other notes) is the margin of safety on offer.
Posted at 05/6/2024 13:15 by omron
GG - I don't think you have missed anything. Strong gross margins, market leader, cash generative, vertically integrated, and solid management. The concerns I see are:1. Teleios, a 10% shareholder, is selling shares - this will depress share price until they are gone. 2. With 1058 stores they will be getting close to saturation in the UK, so need to look for growth elsewhere - gifts, international, wholesale (all of which they are now doing) but also adjacent value categories - toys, books, stationery 3. They purchase products (non card) in the far east in USD and GBP is currently weak but should strengthen and help margins. 4. Labour cost inflation - but there is plenty of upside in card prices given the gulf between them and other card retailers. This is my biggest equity holding.
Card Factory share price data is direct from the London Stock Exchange

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