Further progress on all four pillars of growth strategy:
1. Like-for-like sales growth in existing stores
Further improvements in quality and range of both card and non-card products
Ongoing market share gains as new store openings mature
2. Continuing new store roll out
50 net new stores opened in the period, bringing total estate to 814 at year end
Strong pipeline of further new store opportunities for FY17
3. Delivering business efficiencies
Industry-leading underlying EBITDA margins maintained at 24.9% (FY15: 25.0%), notwithstanding mix effect from growth in non-card revenues and incremental share based payment charges following IPO
Business efficiency initiatives underway to provide partial mitigation of margin headwinds, in particular foreign exchange and the new National Living Wage
4. Development of complementary online sales channels
Continued strong growth in Getting Personal (www.gettingpersonal.co.uk)
Relaunch of Card Factory transactional website (www.cardfactory.co.uk) progressing well, with fivefold sales increase over prior year
Overall online revenue growth of 22.8% (FY15: 23.5%)
Appointment of Karen Hubbard as CEO Designate, announced in January
Year-end leverage of 1.30 times underlying EBITDA, towards middle of the target range of 1 to 2 times underlying EBITDA
Strong return to shareholders with total dividend up 25.0% at 8.5p per share (2015: 6.8p), and special dividend of 15.0p per share paid in November 2015
Richard Hayes, Chief Executive Officer, commented:
"This has been another excellent year for Card Factory. We have continued to expand our store portfolio and grow our market share, and our complementary online sales channels are progressing very well. We have maintained our industry-leading margins and believe that we are better placed than most to manage the increased cost pressures that our sector is facing. Our strong cash generation has allowed us to deliver excellent returns to shareholders by returning surplus funds through both ordinary and special dividends.
"I am fortunate to have had the opportunity to lead Card Factory through an exciting period of growth and change. It is a very strong business with a great team of people who have all contributed to growing the business from a small chain of discount stores to a vertically integrated high margin value retailer with over 800 stores nationwide and two transactional websites. I would like, again, to welcome my successor Karen Hubbard, and to wish her and the team every success for the future."
