Card Factory delivers a record profit but warns on wage rise

Kasmira Jefford
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Card Factory's pre-tax profits soared 72.3 per cent in the six months to 31 July
Discount greetings card chain Card Factory reported a bumper first-half yesterday but became the latest retailer to warn that the government’s minimum wage rise could weigh on margins next year.

The Wakefield-based company, which made its market debut in May last year, said pre-tax profits soared 72.3 per cent to reach £25.7m in the six months to 31 July.

Like-for-like sales were 2.7 per cent, with total revenue increasing by eight per cent to £161.4m, boosted by 42 new store openings in the period.

Shareholders were treated to a special dividend of 15p per share, returning £51.1m to shareholders, on top of the interim dividend of 2.5p.

Chief executive Richard Hayes said the group was still assessing what the cost of implementing the new minimum wage of £7.20 per hour next April will be.

It comes after Next, Whitbread and Morrisons all warned of rising staffing costs.

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