**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.
| Financial Metrics | HY26 (£m) | HY25 (£m) | Change (£m) | Change (%) |
|---|---|---|---|---|
| Revenue | 247.6 | 233.8 | 13.8 | 5.9% |
| Adjusted EBITDA | 44.2 | 45.3 | (1.1) | -2.4% |
| Adjusted PBT | 13.2 | 14.5 | (1.3) | -9.0% |
| Net Debt (exc. Leases) | 78.9 | 74.9 | 4.0 | 5.3% |
| Cash from Operations | 30.5 | 17.5 | 13.0 | td>74.3%|
| EBITDA | 39.1 | 45.3 | (6.2) | -13.7% |
| Profit Before Tax (PBT) | 7.5 | 14.0 | (6.5) | -46.4% |
Debt Comparison
| Debt Metrics | HY26 (£m) | HY25 (£m) | Change (£m) | Change (%) |
|---|---|---|---|---|
| Net Debt (exc. Leases) | 78.9 | 74.9 | 4.0 | 5.3% |
| Adjusted Leverage (exc. Leases) | 1.0x | 0.9x | 0.1x | 11.1% |
Note: The above tables provide a comparison of key financial and debt metrics for Card Factory PLC between HY26 and HY25. The data is extracted from the provided text, which is the Half-year Report released on 30 September 2025.
This HTML code creates two tables: 1. The first table compares key financial metrics, including revenue, adjusted EBITDA, adjusted PBT, net debt (excluding leases), cash from operations, EBITDA, and profit before tax (PBT). 2. The second table focuses on debt metrics, comparing net debt (excluding leases) and adjusted leverage (excluding leases) between HY26 and HY25. The tables are formatted with borders and headers for better readability. The `Change` and `Change %` columns highlight the differences between the two periods.