Card Factory has reported a strong financial performance historically. The Group has posted strong sales growth over a number of years driven by positive LFL growth, new store rollout and the resilience of the greeting card market.

The vertically integrated business model contributes to best-in-class EBITDA margins. The Group also has excellent cash conversion, due to low capex requirements notwithstanding a continuing store roll-out programme.

(£ million, unless otherwise stated)
31 January Year End FY13 FY14 FY15 FY16 FY17
Stores (number) 664 713 764 814 865
Revenue 299.9 326.9 353.3 381.6 398.2
LFL Sales Growth (%) (a) 3.2% 3.1% 1.8% 2.8% 0.4%
Total Sales Growth (%) 13.0% 9.0% 8.1% 8.0% 4.3%
Underlying EBITDA (b) 73.6 80.4 88.2 95.0 98.5
Underlying EBITDA Margin (%) (c) 24.5% 24.6% 25.0% 24.9% 24.7%
Total Capex 13.7 12.0 10.1 11.6 10.4
Operating Cash Conversion (%) (d) 84.2% 85.8% 89.8% 81.2% 90.5%

(a) LFLs for all Card Factory stores (excluding online), where LFL = year-on-year growth in sales for stores which have been open for a full year, calculated on a calendar week basis
(b) Underlying EBITDA defined as underlying earnings before interest, tax, depreciation and amortisation. “Underlying” excludes gains/ (losses) on derivative financial instruments not designated as a hedge,acquisition costs, IPO costs and refinancing costs.
(c) Underlying EBITDA divided by Revenue
(d) Operating cash conversion defined as Underlying EBITDA less net capex less changes in Underlying working capital divided by Underlying EBITDA

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