Card Factory to engage shareholders after AGM revolt

Card Factory has announced that it will engage with shareholders after a revolt over the reelection of its chair.

The greetings card retailer saw nearly a quarter of shareholders vote against the reelection of Paul Moody.

Moody joined the business in July 2020 as executive chair and saw 24.87% of the vote go against him.

Card Factory said in a statement to the London Stock Exchange: “The board notes that, although it was approved, resolution three on the reappointment of Paul Moody (chairman) as a director, received less than 80% support and accordingly we will engage with shareholders to fully understand shareholder concerns, and provide an update on further consultations within six months of today’s AGM in accordance with the UK Corporate Governance Code.”

This comes despite the fact the company saw its adjusted pre-tax profit soar 25% to £65.6m in FY24, largely boosted by its store performances.

Over the period, revenues rose by 10.3% to £510.9m, with total store revenue up by 8.7%, including contribution from 26 net new store openings during the year.

On a like-for-like basis, store revenues grew 7.7%, which the group said reflected the development of its store layout, customer experience and ranges, as well as annualisation of targeted price increases.

Elsewhere, online sales were up 0.4% on a like-for-like basis, with a particularly strong performance in the second half, while sales from partnerships hit £17m.