Shares of Wakefield-based greeting card and gift retailer Card Factory rose as much as 9% after the firm reported that its revenue rose 10.3% to £510.9 million in the year to January 31, 2024, and profit before tax rose 25.2% to £65.6 million.

The firm said its dividend has been reinstated “with the board recommending 4.5p per share for FY24, which includes an amount to reflect the fact that it was not able to pay an interim dividend in the year.”

On current trading and outlook, Card Factory said: “Trading since the start of the new financial year has been in line with the board’s expectations, with continued positive momentum across card, gifts and celebration essentials for the FY25 spring seasons of Valentine’s Day and Mother’s Day, with a record trading day reported on the Saturday before Mother’s Day …

“The board remains confident in the long-term compelling growth opportunity for cardfactory, and in its ability to deliver on the medium-term ambitions of £650 million of sales, profit before tax margins of 14% and 90 net new stores by the end of FY27 …

“We expect to continue to make strategic progress toward these ambitions in FY25, and are encouraged by the start that we have made to the year …

“As anticipated, PBT growth in FY25 is expected to be weighted toward the second half of the year due to the phasing of planned investment and inflationary recovery actions.

“Through the course of the year we expect to manage the overall inflationary environment through the ongoing improvements in efficiencies and productivity and leveraging the benefits of our vertically integrate business model …

“Consequently, expectations for FY25 remain unchanged.”

Card Factory CEO Darcy Willson-Rymer said: “I am delighted with the progress we have made through the year which would not have been achieved without the commitment and efforts of our colleagues. 

“Now, three years into our ‘Opening our New Future Strategy’, cardfactory is financially and operationally a much stronger business.

“This means that we are able to both reinstate the dividend and invest in the future, while effectively navigating the ongoing economic environment.

“We have confidence in our strong value and quality customer proposition, and remain on track for both this financial year and for achieving our FY27 targets outlined at our Capital Markets Day in May last year.”