Updates

Card Factory - Liberum highlights 16 month payback for new stores

March 2016

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.

Card Factory, the low cost “disrupter” of the greetings card retail marketplace, announced sales growth slightly ahead of forecast with 2.8% like-for-like growth in the 11 months to 31 December (vs +1.8% growth in ’14). 50 new stores were opened giving a total store base of 814.Liberum reiterates its strong buy recommendation with a 450p price target. It notes Card Factory’s superior 20%+ margins thanks to its vertically integrated model, while new stores have a rapid 16-month cash payback and post tax ROIC is forecast to average 40% between FY’16-FY’20, giving scope for further special dividends like the 15p (£51.1m) already paid in H1 ’15, to give total expected payout of 22.4 ...

To access our archive of articles and to receive current issues you need to subscribe.

Subscribe now

Already a subscriber? Login

Tritax Big Box - Industrial sheds owner growing quickly thanks to online commerce

Lavendon - Strong Middle East trading defies oil slump

Card Factory - Long-term seller finally exits (September 2024)

Card Factory (March 2024)

Card Factory - Four “ahead of” updates since November (September 2023)

Card Factory - Recovering card retailer on low PE (June 2022)

Card Factory (June 2017)

Card Factory (March 2017)

Card Factory (November 2016)

Card Factory - Tremendous 7.7% dividend yield (August 2016)

Card Factory - Another special dividend expected (June 2016)

Card Factory - â€œ30% of market cap to be returned to shareholders by 2023,â€ says broker (November 2015)

Card Factory (October 2015)

Card Factory - Peel Hunt initiates with Â£5 target (July 2015)

Card Factory (March 2015)

Card Factory - Greetings card firm enjoys huge gains in market share (January 2015)

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.

All material on this website is protected by copyright. You may use Information retrieved from the www.scsw.co.uk website for your own personal non-commercial use which means that you may not sell or copy this information to any third party without prior written consent. ISSN 1358-183X