WH Smith sells Funky Pigeon greeting cards business to Card Factory

Tue, 29th Jul 2025 11:12

(Alliance News) - Card Factory PLC and WH Smith PLC on Tuesday said Card Factory will buy funkypigeon.com Ltd, a personalised greeting card and gifting business, from WH Smith for GBP24 million.

WH Smith said the price represents an enterprise value of GBP26 million for Funky Pigeon, and it expects to receive GBP21 million net proceeds from the sale, which it will use to pay down debt.

Operating from Bristol, England and Guernsey, Channel Islands, Funky Pigeon generated an average of GBP5 million in earnings before interest, tax, depreciation and amortisation per year in the recent two financial years on GBP32 million per annum in revenue, according to Card Factory.

"By combining Funky Pigeon's digital platform with our existing omnichannel offer, cardfactory intends to leverage its 24 million unique store customers to develop a highly competitive online presence in the celebration occasions market," it said.

The combined business will compete in the UK with London-listed online cards and gifts specialist Moonpig Group PLC.

Card Factory said the acquisition, which is expected to be completed by the end of the calendar year, will be funded by a drawdown of up to GBP35 million from the accordion facility of its banking syndicate.

It expects Funky Pigeon to be earnings enhancing from the financial year that ends January 31, 2027, helped by expected synergy savings of more than GBP5 million.

Providing a trading update as well on Tuesday, Card Factory said adjusted pretax profit for the half year ending on Thursday will be "slightly behind" the GBP14.5 million booked a year before. This is due to the company bringing forward investment in an upgraded store till system to the first half of financial 2026 from the second.

Sales were up by a mid-single-digit percentage in the first five months of the year, and Card Factor said it remains confident to meet full-year expectations.

WH Smith said the disposal of Funky Pigeon has completed its transformation into a pure-play travel retailer, having sold its enonymous high-street stationary stores back in March. The company said it is trading in line with market expectations.

WH Smith shares were down 2.0% to 1,055.00 pence on Tuesday morning in London. Card Factory shares were up 6.6% to 94.70p. Moonpig shares were down 0.7% at 209.50p.

By Tom Waite, Alliance News editor

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