Card Factory Regulatory News (CARD)

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF THE MARKET ABUSE REGULATION (EU) NO. 596/2014, AS AMENDED.

26 June 2020

Card Factory plc("Card Factory" or the "Group")

Directorate Change

Card Factory plc (the Group) announces the departure of Karen Hubbard, Chief Executive Officer

During her 4 years as CEO, Karen has made a significant contribution to the Group, driving the evolution of the business from a recently listed company to an established plc that is the clear market leader in greetings cards.

Karen has implemented a solid platform for future growth, recruited a strong Executive Board, overseen entry into new channels and markets and led the development of the refreshed strategy which is now more relevant to the market and macro-economic environment we face today.

As we look forward to the execution of this refreshed strategy, Karen and the Board have agreed that this is an appropriate time to transition to new leadership committed to the longer term successful implementation of the next phase of the Group's return to growth.

The Board and Karen have therefore agreed that she will step down as CEO and from the Board at the end of June and a search for a successor will commence immediately.  Paul Moody, Chairman, will take on the role of Executive Chairman until a new CEO has been appointed and is in role.

The Group will, as planned, provide greater detail of the refreshed growth strategy at the virtual capital markets event on 28th July 2020.

Paul Moody, Chairman commented: "The Board would like to thank Karen for her important contribution to the company, made with passion and commitment, over the last four years. The Group has a strong customer proposition, the correct strategy for the next phase of development and a highly capable leadership team to deliver it.

I will provide interim executive leadership, supported by Kris Lee and the executive team whilst we recruit Karen's replacement."

Karen commented: "I am incredibly proud to have led Card Factory over the past four years and to work with the exceptionally talented people that make Card Factory the great company that it is. Together we have undertaken a significant transformation across the organisation to support its future success. The refreshed strategy will provide a strong foundation for the future. I would like to thank all the colleagues across the business for their support throughout my leadership and wish the Company and colleagues every success in the future."

Remuneration disclosure

Karen's leaving arrangements will be treated in accordance with the approved Directors' Remuneration Policy and her service contract. She will be on garden leave between 30 June 2020 and the date she ceases employment, expected to be 31 December 2020, during which she will be available for handover. Salary and contractual benefits including pension will be paid in the normal way up to 31 December 2020. Payment of salary and contractual benefits in lieu of Karen's remaining period of notice will be paid for the period to 26 March 2021, excluding private medical insurance which will be maintained until 26 June 2021 at the latest. Payment in lieu of notice will be made in equal monthly tranches and subject to mitigation.

Karen will be eligible to receive a pro rated annual bonus, subject to performance, for the period to 30 June 2020 and her outstanding Restricted Shares for 2018/19 and 2019/20 will be pro rated to the date she ceases employment, expected to be 31 December 2020 and subject to performance and their normal vesting and holding periods in accordance with their terms. She will not be eligible to receive any further annual bonus awards or Restricted Shares. Full details will be disclosed on the Card Factory plc website in due course in compliance with Section 430(2B) of the Companies Act 2006 and in the Directors' Remuneration Report within the Annual Report and Accounts for the year ended 31 January 2021, and subsequent years, as appropriate. 

Paul Moody will be paid in accordance with the approved Directors' Remuneration Policy. In addition to his fee for his Chairman role of £144,000 he will receive an additional fee of £30,000 per month, recognising the significant time commitment involved in leading the business until a CEO is recruited. He will not receive benefits or pension nor participate in the annual bonus or Restricted Shares scheme.

The information communicated in this announcement is inside information.

Enquiries

Card Factory plc via Tulchan Communications (below)

Paul Moody, Chairman

Kris Lee, Chief Financial Officer

Tulchan Communications +44 (0) 207 353 4200

James Macey White / Elizabeth Snow / Amber Ahluwalia cardfactory@tulchangroup.com