Updates

Card Factory

June 2017

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

A tricky year ultimately delivered respectable results, a touch higher than forecasts. Revenues rose 4% to £398m with operating profit up 3% to £87.8m. Eps increased 3.8% to 19.8p. Following last year’s 15p special dividend it has committed to another this year given net debt to EBITDA is just 1.38x, at the lower end of its target range of 1-2x.Given its excellent growth record pre IPO we were disappointed by store like-for-like sales growth of 0.4%, which it blamed on tough comparables (FY’16: +2.8%) and lower footfall in general retail. Nevertheless, it achieved business efficiencies to mitigate forex headwinds and national living wage increases, leaving EBITDA margins at 24.7% (2016: 24.9%). It also opene ...

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With small companies there is an above average degree of risk compared to buying blue chips. Please be aware that we have not assessed the suitability of any of these investments for you. The newsletter simply states a personal view and diarises the editor’s investment decisions. Please speak to your stockbroker or other qualified individual to ascertain whether any of these companies mentioned would form useful additions to your own portfolios. Past performance is no indication of future success.

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