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Really I'm talking about tranche A not being a barrier anymore.
If that is the case then announce it and let the speculators speculate, if you know what I mean !
They won't announce a dividend amount in April ahead of 6 month results although they may confirm dividends are restarting and a range of dividend cover within which the dividend will be paid. An interim is possible paid say Sept / Oct but it would be quite small I expect. 2p a share. Or they may wait until year end. Hopefully not! The sp is being pushed down by someone or some strategy either to get shares cheap for an aggressor or similar story. Looks from the timing as though US is involved. Announcing a dividend and reinstating dividends is the best way to counter this, and / or share buybacks.
Isn't that something that is worthy of updating the market about?
You don't get much help from IR here.
The final maturity date for tranche 'A' of the term loans WAS 31 January 2024.
Darcy has already told us that 30th April is when we get the 2024 results, but we have also already been told that revenue is 500m and net profit 60m. What I'm really looking for on 30th April is an announcement of 8p dividend for 2025. With that I sincerely hope this revalues from pe
Was hoping this mornings rns was something more interesting than a block listing.
Probably have to wait till 30th of April for final results for better news.
One other thing to consider. With issues with post office deliveries this will have less impact on Card than online alternatives as many of our cards are not posted.
If i was Moonpig i would be far more concerned
Online is currently less than 2% of revenues so not sure if it would make much difference, even if it doubled or tripled.
Click and collect seems to be a better option as there over over 1k stores to collect from.
Maybe partnerships is the way to go as there will be many opportunities and the Matalan tie up seems to be going well.
Clearly we would all like a Moonpig valuation - however, they seem as overvalued as we are undervalued.
Cant CARD just leave the FTSE and join another market, like a US one ?
Wouldn't that address the undervaluation
This share / business is very undervalued and removing all debt will just make it a perfect target for Private Equity who would load it with debt, strip out cash and kill it, while getting it very cheap. I agree with the general idea of minimising debt but interest rates will probably start coming down soon and I believe reinstatement of dividend is more important if the share is to attract the attention it should be getting from institutional investors.
The market hates uncertainty, and while there is hardly any uncertainty for me (or any other remotely discerning investor), some people like to be spoon fed. They wait until the cat is completely out of the bag, and the opportunity is missed… such people certainly weren’t invested here at 30p, when many of us were.
Moreover, the market had certain expectations for the level of information provided in the RNS (dividend reinstatement, an update on net debt etc), and these were not met. In my opinion, the RNS told us everything that we needed to know in order for us to draw enough conclusions as to the direction of the company… i.e progression towards our targets of being in a net cash position and/or reinstating the dividend. Personally, I would rather CARD go completely debt-free, as this is more tax efficient than paying dividends, but for a share price rally, I must admit that I believe a dividend reinstatement would act as a far better catalyst for igniting the share price, forcing value investors like myself towards the exit, as the dividend brigade make their purchases.
All just my opinion; draw your own conclusions and DYOR, as always
Nice to see that you’re still invested here Roxbury House
The way the post office is going I really don't think that's a great idea. Cards are being 'given', posted less often...
Nah, don't think so.
I'd prefer repaying debt than a dividend
Good Post ajc2 ,
Totally agree with you.
The Chairman has already stated that he hopes to start paying a small Dividend in 2024
UK retail sales data shows decline -3.2% in December versus Card Factory store revenue growth +7.8%. That's good performance.
Regarding the national minimum wage increase, Card are well placed to deal with this imo. There wage bill last year was £138m. Let's assume they apply a 10% wage increase to the entire wage bill, this would equate to £13.8m wage expense increase. On at least £476m turnover, they would need to raise prices around 3% across the board to cover this. In other words increase the price of a card from £1.50 to £1.55, hardly noticeable to the consumer.
Card have the advantage of supplying low cost products in high volume, so can pass price increases minimally per unit. Or as they did last year, via targeted price increases.
I'm still bullish on Card however note the potential headwinds. Once the dividend is re-introduced (whenever that may be), this share should garner more interest from investors and re-rate.
Yeah it is managing upwards is what it’s called especially after the fiasco to the half year rns
If there was no update then simply quote this
To omit anything is curious and will need further explanation soon enough
Look at kier yesterday and ferrexpo
Unexpected dividends supports the market reaction on the day
It’s not a school boy error… the role of the CFO and the board includes protecting and increasing shareholder value … I think divi detail was omitted on purpose simply because they have no new news other than what they have shared before which is that a divi will only be considered as early as FY25… we may have to wait to half year of FY25 to get any news…. It’s incredibly frustrating
Card should of mentioned divis or buy backs to excite the market
They should know now what the plan is for April and could of announced
That would have protected the share price to have 2 steep falls in sept and Jan is very annoying as the underlying business is rock solid
Darcy school boy errors though
CARD need to embrace their inner child and create a new fashionable online brand to capture more of MOON's and Funky Pigeon's market share. It's a no brainer!
If the market regarded this as a growth stock the PE would be c20. However, we sit at 7 and possibly nearer 5 once the YE results are published. Surely a PE of 10 would be both conservative and a little more realistic. Madness
Based on the headline figures, the debt will massively reduce. its a free cash flow machine
Why didn't they mention the debt situation in the trading update ?
I just did an online order for all my Cards for the year from the website. Call it bizarre revenge against yesterday's fall! I was quite surprised at how good and easy to use the website was.