6 January 2016
Card Factory plc ("Card Factory" or the "Group")
Retirement and succession of Chief Executive Officer ("CEO")
Karen Hubbard to succeed Richard Hayes as CEO
Card Factory plc, the UK's leading specialist retailer of greeting cards, dressings and gifts, is pleased to announce the appointment of Karen Hubbard to the Board as CEO Designate, with effect from 22nd February 2016.
Since 2014 Karen has served as Chief Operating Officer of B&M European Value Retail S.A. ("B&M"), the fast growing multi-price value retailer, where she has been accountable for retail operations, distribution & logistics, supply chain, IT, HR, marketing and store development.
From 2009 to 2014, she held a number of senior roles at ASDA, latterly Executive Director Property, Format Development & Multi-Channel. She previously spent 14 years in BP's retail operations, initially in her native Australia before moving to the UK in 2008 where she became UK Convenience Retail Director, responsible for BP's own retail estate across all formats including Connect/Simply Food, Motorway, Express and the franchise channel.
Karen will succeed Richard Hayes as CEO of Card Factory in mid-April. Richard has been with the Group since 2003, serving as Managing Director and CEO since 2008. He recently made the Board aware of his wish to step down once a suitable successor had been identified. He will retire from the Board and leave the Group at the end of June 2016, having ensured a smooth handover over a four-month period.
The Board confirms that trading over the Christmas period has been in line with its expectations. A more detailed trading update will be provided, as previously advised, on Tuesday 26th January 2016 ahead of the Group's financial year end.
Geoff Cooper, Chairman Card Factory, said:
"Richard has led Card Factory with enormous success. Since he joined the senior management team in 2003 the Group has grown from a 40-store discount chain to a vertically integrated high margin value retailer with over 800 stores and two transactional websites. Having led the business through an MBO, the 2014 IPO and its first two years as a listed company, it is fully understandable that he now wants to retire. We are extremely grateful for all he has done and, when he steps down, it will be with our very best wishes."
"Karen has a huge amount of relevant experience in value retailing, both through store estates and multi-channel. She clearly has a great deal of energy, and ambition for the business. There is significant growth still to come from Card Factory, and the Board is confident that she is the right person to take on the mantle from Richard to deliver it."
Karen Hubbard said:
"This is a wonderful chance to lead a very successful and fast-growing value retailer with a clear leadership position in its market. I have enjoyed my time at B&M but this was simply too good an opportunity to ignore. I very much look forward to working with the team to continue the success achieved by Richard and his team over recent years."
Richard Hayes said:
"I am fortunate to have had the opportunity to lead Card Factory through an exciting period of growth and change. It is a very strong business, with a great team of experienced people at Executive level and right across the business, and I know they will give Karen every support as she takes the business further forward. I wish them all the very best for the future."
Save as disclosed above, there is nothing to disclose pursuant to Listing Rule 9.6.13.
- Ends-
For further information, please contact:
John Olsen / Kelsey Traynor
MHP Communications 020 3128 8100
Notes to Editors
Card Factory is the UK's leading specialist retailer of greeting cards, dressings and gifts. It focuses on the value and mid-market segments of the UK's large and resilient greeting cards market, and also offers a wide range of other quality products, including small gifts and gift dressings, at affordable prices. Card Factory principally operates through its nationwide chain of over 800 Card Factory stores, as well as through its online offerings: www.gettingpersonal.co.uk and www.cardfactory.co.uk.
The Group's clear strategy is focused on four pillars of growth:-
· continuing to grow like-for-like sales in existing stores;
· continuing to roll out profitable new stores;
· continuing to focus on delivering business efficiencies; and
· increasing penetration of the complementary online market.
Card Factory commenced operations in 1997 with just one store and has expanded its store estate primarily through organic growth into a market-leading value retailer with a nationwide presence. The Group's stores are in a wide range of locations including on high streets in small towns through to major cities, shopping centre developments, out-of-town retail parks and factory outlet centres.
Over the last 10 years, Card Factory has developed a vertically integrated business model with an in-house design team, an in-house printing facility and central warehousing capacity of over 360,000 sq. ft. This model differentiates the Group from its competitors by significantly reducing costs and adding value to customers in terms of both price and quality, underpinning the Group's motto: "compare the quality, compare the price".
In the financial year ended 31 January 2015, the Group achieved revenue growth of 8.1% to £353.3 million (FY14: £326.9 million) and underlying EBITDA growth of 9.6% to £88.2 million (FY14: £80.4 million) at a margin of 25.0% (FY14: 24.6%).
