Greetings card retailer Clinton Cards has suffered a slide in full-year profits but is embarking on a turnaround programme and has agreed a credit extension with lenders.

Clinton Cards posted an adjusted operating profit at group level of £3.2m in the year to July 31, steeply down from £18.8m the previous year.

Revenues fell 7.6% to £364.2m, or 2.9% like-for-like. At the Clintons chain like-for-likes fell 3.4% but the Birthdays chain managed a like-for-like increase of 0.4%. In the first 12 weeks of the new financial year, like-for-like sales across the group were 1.5% down year-on-year.

The retailer has arranged an extension on a £55m revolving credit facility with Barclays and RBS until July 2013. Chairman Don Lewin insisted progress has been made and more evidence of that will come in “the months ahead”.

The retailer has begun a strategic review led by new chief executive Darcy Willson-Rymer, focusing on improving customer experience, the store portfolio, supply chain management and a digital offering.

Lewin said: “There is a shared recognition across the group of the need to respond to the challenges of having a visible high street presence and a resilient business model if we are to return to a period of sustained performance.

“In the coming months we will outline in more detail the ourcome of the strategic review and the journey that lies ahead. We start this new phase with a very strong brand and an improving portfolio of stores and products.”