Card Factory has posted an annual loss after being hit hard by the closure of its stores during the lockdowns over the last year, but said it was well placed to “respond positively to the changing retail environment.”
Over the 12 months to 31 January, the gift card retailer slipped from a pre-tax profit of £67.2m to a loss of £16.4m. Revenue plummeted 36.9% to £285.1m after its store estate was closed for an average of five months during the year, with a “significant impact on profitability”.
However, the retailer reported “better than expected reopening performances” after the first two lockdowns, as well as high growth in its online Card Factory store (up 135.3% to £11.1m) and separate Getting Personal site (up 12.2% to £16.5m).
The company secured new £225m debt facilities in May to support its recovery and future growth plans.
“Since joining Card Factory in March 2021, I’ve been immensely encouraged by what I have seen and heard,” said Darcy Willson-Rymer, Card Factory’s Chief Executive.
“We have successfully reopened our entire store estate following the third lockdown and delivered a reassuring performance in stores, whilst maintaining online momentum.
“Our powerful brand and unique business model means we are well placed to respond positively to the changing retail environment and to unlock the inherent potential in this business.”
He added: “The recent refinancing provides sufficient resources for us to do that by building on our excellent platform to drive future growth. I am excited about the opportunities ahead.”
NAM Implications:
- Name any company able to absorb a 39% fall in revenue.
- “better than expected reopening performances”…
- …after the first two lockdowns…
- …as well as high growth in its online Card Factory store (up 135.3% to £11.1m).
- Fingers crossed…
