Card Factory reveals plans for IPO
Card Factory has become the latest retailer to announce plans to float on the London Stock Exchange.
The greeting cards retailer, which operates over 700 stores across the UK and Ireland, is aiming to raise gross proceeds of £90 million which it will use to reduce its debt and provide access to lower cost financing.
Founded in 1997, Card Factory saw its revenue grow by 9% to £326.9 million in the year to 31 January 2014 with underlying EBITDA rising by 9.2% to £80.4 million. The retailer plans to increase its stores to around 1,200 in the UK and Ireland over the next 10 years and will also look to capture a greater share of the small but growing online market.
Richard Hayes, Card Factory chief executive, said: “Since opening our first store in 1997, we have firmly established Card Factory as the UK’s leading specialist retailer in the greeting cards market.
“The success of our model is demonstrated through our track record of profitable growth, which includes unbroken like-for-like revenue growth in each year since our first store was opened.
“Our store roll-out strategy is well proven, with an average of 50 new store openings per annum over the past ten years, and we see the potential for significant further store portfolio expansion in the UK and Republic of Ireland over the coming years. We also see the opportunity to gain a greater share of the online market for personalised cards and gifts through our existing presence, gettingpersonal.co.uk. “
In the same announcement, Card Factory confirmed that former Travis Perkins chief executive Geoff Cooper will be appointed as non-executive chairman ahead of the initial public offering. With over 20 years experience of serving on boards of UK public companies, Cooper is currently non-executive chairman of homewares retailer Dunelm and has been working with the Card Factory board since January 2014.
Card Factory also announced that Crew Clothing managing director Octavia Morley and Dunelm executive finance director David Stead will be appointed as independent non-executive directors prior to the flotation.
Cooper said: “I was attracted to Card Factory by its compelling business model, clear growth prospects and the strength of its executive management team. In the period I have worked with the group, all these initial impressions have been confirmed. The addition of Octavia Morley and David Stead as non-executive directors will create a highly experienced and well balanced board, capable of leading and supporting the group in the effective execution of its growth strategy.”
