Card Factory Plc

Total group revenue increased 5.9% from GBP 233.8 million to GBP 247.6 million. Adjusted PBT was down by GBP 1.3 million year on year, and H1 PBT margin was 5.3% versus 6.2% last year. Like-for-like sales grew 1.5%, average basket value rose to GBP 4.95 from GBP 4.75, and the store base grew 2.9% with 30 net new stores in the last 12 months. Underlying free cash generation over the past 12 months was GBP 37.9 million with free cash flow conversion of 78%; capex was GBP 19.3 million over the last 12 months and GBP 7.6 million in H1. The interim dividend is 1.3p per share. FY '26 guidance remains unchanged, with sales expected to grow in the mid-single-digit percentages and PBT in the mid- to high single-digit percentages; after Funky Pigeon, FY '26 sales are expected to be about 3% higher versus prior guidance, while PBT guidance remains unchanged because extra profit is offset by financing and integration costs. Leverage is expected to rise by 0.3x to about 1.0x by year-end, still below the 1.5x target.

Darcy Willson-Rymer said the first half showed continued momentum across the company’s growth pillars and described Funky Pigeon as a major milestone that accelerates the digital strategy. His tone was confident and operationally focused: stores are performing resiliently, wholesale and overseas partnerships are expanding, and the company is entering the peak trading season well prepared. He also emphasized that Card Factory is evolving into a broader celebrations platform across stores, online, and partnerships.

Matthias Seeger highlighted resilient H1 performance despite a difficult environment, with revenue up 5.9% and free cash flow conversion at 78%. He said H1 adjusted PBT was down GBP 1.3 million because of pulled-forward efficiency investment and that inflation added more than GBP 20 million, or 4.4%, to the cost base, while Simplify and Scale delivered GBP 9 million of efficiencies in H1. He also noted capex of GBP 19.3 million over the last 12 months, leverage of 1.0x, cash and debt headroom of GBP 46 million plus a GBP 75 million accordion, and a higher RCF of GBP 160 million after using GBP 35 million of accordion capacity to help fund Funky Pigeon. The company also announced a 3 million to 4 million share purchase program annually to offset dilution, expected to lift EPS by about 1% a year.

Analysts pressed on store openings, data strategy, Funky Pigeon synergies, volume trends, capex, margins, working capital, and the long-term CM day targets. Management said it remains on track for 25 to 30 net new stores a year, does not plan a traditional loyalty card, and instead wants to use store and online data to capture more of customers’ celebration spend. On Funky Pigeon, they said synergies of more than GBP 5 million should fully materialize from February '27 and that the online platform, product range, and marketing capability will be integrated over the next 12 to 18 months. They also said the earlier GBP 650 million revenue and 14% PBT FY '27 ambition from the 2023 Capital Markets Day is no longer the relevant reference point after higher inflation, and the current guide is mid-single-digit sales growth and mid- to high single-digit PBT growth.