**Summary of Card Factory PLCs Half-Year Report (HY26) as of 30 September 2025:**
**Financial Performance**
**Revenue Growth** Card Factory PLC reported a 5.9% increase in revenue to £247.6 million for the six months ended 31 July 2025 (HY26), compared to £233.8 million in HY25. This growth was driven by a 2.9% increase in total store revenue, including contributions from 30 net new stores, and a 1.5% like-for-like (LFL) store revenue growth.
**Adjusted EBITDA and PBT** Adjusted EBITDA decreased slightly by 2.4% to £44.2 million, while Adjusted Profit Before Tax (PBT) declined by 9.0% to £13.2 million. These reductions were partly due to efficiency-focused investments and inflationary pressures.
**Cash Flow** Cash from operations improved significantly by 74.3% to £30.5 million, reflecting better working capital management.
**Business Highlights**
**Store Performance** The core stores business showed resilience, with total store revenue growth of 2.9% and LFL growth of 1.5%, in line with the non-food retail sector. New store openings and range development, particularly for Spring seasons, supported this performance.
**Digital Strategy** The acquisition of Funky Pigeon in August 2025 for £24.1 million is expected to accelerate the Groups digital strategy, providing a platform for online growth, especially in the direct-to-recipient card and gifting market.
**Partnerships** Organic partnerships delivered double-digit revenue growth of 15.7%, supported by expanded offerings. Recently acquired businesses in North America and the Republic of Ireland performed in line with expectations.
**Strategic Initiatives**
**Simplify and Scale Programme** This multi-year productivity and efficiency programme helped mitigate the impact of rising National Minimum Wage, employer National Insurance contributions, and broader inflationary pressures.
**Range Development** New premium card ranges and expanded product lines, such as a 20% LFL increase in stationery sales, contributed to growth.
**Operational Efficiency** Investments in an upgraded point-of-sale (POS) till system and optimized warehouse labor are expected to drive further efficiencies.
**Financial Position and Dividends**
**Net Debt** Net debt (excluding leases) increased slightly to £78.9 million from £74.9 million in HY25, primarily due to acquisitions and dividend payments.
**Dividends** The interim dividend was increased to 1.3 pence per share from 1.2 pence in HY25, demonstrating a commitment to shareholder returns.
**Outlook**
**Full-Year Expectations** Despite a challenging consumer environment, the Group maintains its full-year expectations, supported by strong plans for the peak festive season, including new Christmas and Halloween ranges.
**Adjusted PBT Growth** Mid-to-high single-digit percentage growth in Adjusted PBT for FY26 is expected, driven by resilient revenue performance, strategic initiatives, and the benefits of the Simplify and Scale programme.
**Post-Period Activity**
**Funky Pigeon Acquisition** Completed in August 2025, this acquisition is expected to be earnings-enhancing from FY27, with annual synergy benefits of over £5 million by the end of FY27.
**Conclusion**
Card Factory PLC demonstrated resilience in HY26, achieving revenue growth and maintaining full-year expectations despite inflationary pressures and a challenging retail environment. Strategic initiatives, including the acquisition of Funky Pigeon and the Simplify and Scale programme, position the Group for continued growth and efficiency improvements.