Card Factory has reported rising half-year profits and sales boosted by new stores, improved product quality and a growing online business.

Card Factory's like-for-likes jump 1.8% over the 11 months ending December 31 2014.

  • Half-year EBITDA up 7.7% to £32.5m
  • Like-for-likes rise 2.7%
  • 36 new stores opened, bringing total to 800
  • Special dividend of 15p per share, returning £51.1m of excess cash to shareholders

The Yorkshire-headquartered retailer, which launched an IPO last year, revealed that total sales climbed 8% to £161.4m in the six months to the end of July. On a like-for-like basis sales were up 2.7%.

The FTSE 250-listed retailer also announced a special dividend of 15p per share, which will return £51.1m of excess cash to shareholders. Card Factory said it reflects the “ongoing strong cash generative nature of the business”.

The retailer also opened 36 new stores in the period, bringing its total store estate to 800. It is on track to open 50 net new stores by the end of the year.

The firm’s underlying EBITDA grew 7.7% to £32.5m in the period. Pre-tax profits on a statutory basis were £24m, compared with a loss of £7.9m the prior year due to the costs of its IPO.

Chief executive Richard Hayes said he was encouraged by the results. “We continue to deliver on each of our four growth pillars: growing like-for-like sales, rolling out new stores, delivering business efficiencies and growing our online businesses,” he added.

Sales from its Getting Personal gifts website rose 25% in the period to £6.9m, while earnings were up 58.8% to £1.3m.

Looking ahead, the retailer said a number of “efficiencies” are being looked at in relation to margin “headwinds” including the Government’s new living wage and foreign exchange rates.