Card Factory (CARD) H1 2026 earnings summary

Executive summary

• Revenue grew 5.9% year-over-year to £247.6m in H1/HY26, driven by robust store performance, new store openings, and effective strategy execution despite challenging retail conditions.

• Strategic acquisitions, including Funky Pigeon, Garven, and Garlanna, contributed to growth and accelerated digital and gifting capabilities.

• Interim dividend increased to 1.3p per share, reflecting confidence in sustainable returns and a progressive dividend policy.

• Continued expansion in the UK, Ireland, and internationally, with 30 net new stores opened in the last 12 months.

• Adjusted EBITDA declined 2.4% to £44.2m, and Adjusted PBT fell 9.0% to £13.2m, impacted by inflation and investment timing.

Financial highlights

• Group revenue rose from £233.8m to £247.6m (+5.9% year-over-year); store revenue up 2.9% with 13 new stores opened in HY26.

• Like-for-like store sales grew 1.5%; online LFL sales declined 11.3% as focus shifted to higher margin sales.

• Adjusted PBT was £13.2m, down from £14.5m in HY25, due to inflation and efficiency investments.

• Free cash flow conversion at 78% of earnings; underlying free cash generation of £37.9m over 12 months.

• Net debt increased to £78.9m, reflecting M&A activity and capital investment.

Outlook and guidance

• Full-year expectations unchanged; mid- to high single-digit Adjusted PBT growth and mid-single-digit sales growth targeted.

• H2 expected to deliver higher sales and margins, with strong plans for peak trading seasons.

• Funky Pigeon acquisition expected to add ~3% to sales in FY26 and deliver over £5m in annual synergies by FY27/28.

• CapEx guidance maintained at £20-25m annually.

• 70-80% of adjusted earnings to be converted to free cash.