Montman
06 Feb 2018
Re: Dividend I don't think there will be a divi in March. Last divi was paid in Dec.Summer time, if then, before another I would guess.
MAD DOCCER
06 Feb 2018
Dividend Hi what is the qualifying period please IE if I top up today would they qualify for the divi in March ?Thanks in advance.
hopefull2
05 Feb 2018
Re: 1.87 Today most of the markets down so nothing to read into it today in my view.
contrarianstyle
05 Feb 2018
1.87 Are things really that bad to be at 1.87? they are still growing and generating a lot of cash even if not as much profit as hopedI`ve topped up here
Gooffy
05 Feb 2018
Re: Prices Pretty sure they have already increased prices marginally of late.See if shows in next update
the-mong
04 Feb 2018
Re: Buxton Regarding my last post. Tbh the CF shop was the busiest shop by far in the arcade. I think they should consider a small % rise in card prices to offset any cost implications of exchange rate and wages etc I think they have plenty of headroom to do so
Bill1703
04 Feb 2018
Re: Buxton "... not sure number of customers is a fair comparison here - guessing the average profit per customer is higher in Clinton when they are charging £3-4 for a card than CF where it’s under £1, so footfall isn’t necessarily an indication of greater profits..." Clintons will typically make more absolute profit per card than CF, but - as a pure retailer of externally sourced product - much lower % margin. So the overall profit on the same footfall and unit sales will be higher, but by a (much) smaller margin than the average selling price might suggest. In this example, the actual profitability will hinge on other factors too, such as "basket size" - the general impression is that CF sells more cards per individual customer than Clintons, where customers are more likely to be buying just one or two cards. FWIW in this "spot" example (ie. Mong's 11 CF customers vs 2 Clintons) I would say CF is making more profit overall, and possibly significantly so - but it will of course vary enormously from individual case to case. "... need to implement some big new initiatives to mitigate FX and living wage pressures rather than just whining about it all the time. My other holding CAKE ... have implemented a proper plan to mitigate which has kept profits rising. I feel with a more competent management team CF could be doing better."It's a key issue for sure, but not one that is easy to assess - you can argue it both ways. And it reflects the wider, more fundamental debate about short-termism, and the maximisation of immediate profits vs positioning for the long term.I have always been most interested in the long term story for CF - they are aiming to take the lion's share of a fairly resilient but naturally flat market, and are uniquely placed to do so. As they are currently still building brand awareness (still at a relatively low level IMHO) and rolling out their new stores programme, there is much sense in preserving and entrenching the company's USP and competitive advantages.And I've always had a major issue with the sort of "mitigation" referenced above - whether it's raising prices, finding more costs to cut or whatever, the big question for me is always - "why weren't you doing all this already?" Particularly if (as some companies seem to imply) it looks relatively easy to deliver... let's see where they are 2, 5, 10 years down the line.But this is not to say the CF team ARE doing everything they can, currently - harder to say for sure. But I am happy enough with what they ARE doing and their prevailing market position - and lest we forget, they are still growing overall sales quite nicely, and still attracting very healthy footfall (as all anecdotal evidence suggests). Is flattish overall profit and a modest margin decline (from sector-high levels) for a couple of years really that bad??
Dogberto
04 Feb 2018
Re: Buxton Although that sounds good, not sure number of customers is a fair comparison here - guessing the average profit per customer is higher in Clinton when they are charging £3-4 for a card than CF where it’s under £1, so footfall isn’t necessarily an indication of greater profits. we have heard stories on this forum where the local Clinton’s seem to have closed due to the local CF, so perhaps there is an element of customers leaning toward CF that would normally have gone to Clinton’s. I agree with the previous post regarding CF’s board which I have raised a number of times which is that they need to implement some big new initiatives to mitigate FX and living wage pressures rather than just whining about it all the time. My other holding CAKE has had the same issues, but Luke Johnson and his team have implemented a proper plan to mitigate which has kept profits rising. I feel with a more competent management team CF could be doing better.
the-mong
03 Feb 2018
Buxton Springs Arcade Card Factory 11Clintons 2Customers 220pm
sound money
01 Feb 2018
Re: New Shareholder view Zip00,Really enjoyed your post m8. Do agree with the points raised by Bill & Tight. Still it's good to see a shareholder who is broadly supportive but calls it as he see's it.M
Tight Yorkshireman
01 Feb 2018
Re: New Shareholder view All good points Zip00, only one I'd disagree with is the locations. It's a rare day you see a quiet Card Factory shop so I don't think relocating to better locations would add much in the way of footfall that they don't already have, but it would decrease branch profitability. However I do think they need to take a bit of a gamble in some retail areas where they aren't present and I assume they perceive to be high end locations.There is definitely scope to improve profits but even at present levels I view this as being under valued, it suffers just from the current negative perception of UK retail despite the fact that it has many qualities that make it a much stronger business than other traditional retailers.
Bill1703
01 Feb 2018
Re: New Shareholder view Zip00 - an interesting assessment, and I agree with much of it. But it is not a flawless analysis, and I take issue with the following:"The present Chairman (appointed 4/14) has not the confidence to hold any shares in CARD having sold out 146666 in May 17 at £2.25! The same situation with Kris Lee CFO, and all the other non execs Octavia Morley 4/14, David Stead 4/14, and Paul Mcradden12/14. No wonder the "city has no confidence in CARD..."As far as I can see, the Chairman holds somewhere over 300,000 shares - the part-sale in May 17 was to cover costs (tax, etc) related to a larger option exercise, his overall holding actually went up following the transaction. Non-execs Morley and Stead do hold some shares - though admittedly, not many - and new Non-exec Whiteside was buying only recently. CFO Lee only recently joined the board, so maybe give him time - but I agree, would be encouraging to see him wade into the market. Meanwhile, the CEO has bought shares in the market no fewer than six times since mid-2016, and most recently just last month - nothing massive on any occasion, but it all adds up. "It is no surprise to me that the shares have been so hammered, and it could get worse, unless the BOD start to take positive action instead of telling share holders of the problems they face..." Maybe an element of truth in this... though at least they have been upfront about the various margin pressures for some time, and I share their (likely) frustration that the market - and sell-side analysts - have been slow to acknowledge and assess them properly. I think they have been proactive on some counts - eg. the capital structure and returns policy (though personally I would like to see share buy-backs now, rather than special divis - perhaps not a popular view?), and the decision to widen the card range with more "up-market" price points. And as for the decision to hold prices - some suggestion this was at least partly virtue-from-necessity after an early move didn't work well, but either way, it's a business that can afford to take the long view and I generally support this - not many that can these days! The card market may be resilient (I still think it is), but it is also fairly flat - the CARD story is therefore one of taking share from competitors, and on a sustainable basis, not cylical. As far as we can see, they have been doing so, they are doing so, and I think this continues. Yes, it means the story is increasingly a mid-to-long term story one, more than it once was - but nothing wrong with that IMHO!
Gooffy
01 Feb 2018
Re: New Shareholder view Good post.I wonder how many greggs are at the same site as Card, I know two straight awayAdding a card section in greggs would benefit both and I can't see little extra cost.The state of testing computers is getting so bad since its all outsourced, Capita just realised this, over complicated, iii no prices this morning. I tested computers for 18 years think I would have noticed can't login and no prices!!
zip00
31 Jan 2018
New Shareholder view I posted 2 weeks or so ago that I had done some research on Card, bought quite a load of shares average around 200p, and would publish my view on Card when returned from away.First up, I am confident in my investment, and am sure I will do well from it, but expect a few bumps on the way.My main concern is the new CEO Karen Hubbard (appointed 4/16), and the new CFO Kris Lee (appointed 7/17) both of whom have worked for numerous companies (KL 9 companies in 20 years!!) my experience is these people are never anywhere long enough to prove anything. However I am hopeful that the new non exec Roger Whiteside (CEO of Greggs) with experience of low cost fast moving retail, will force some changes thru, ie take over as Chairman. Cooper is the Charterhouse man and now they only hold 18% in the company, my hope is Invesco with 27% and Artemis with 10% will with share price decline force thru changes. The present Chairman (appointed 4/14) has not the confidence to hold any shares in CARD having sold out 146666 in May 17 at £2.25! The same situation with Kris Lee CFO, and all the other non execs Octavia Morley 4/14, David Stead 4/14, and Paul Mcradden12/14. No wonder the "city has no confidence in CARD.Card is now being run in much the same way as Dean Hoyle, who started the business in 1993 selling cheap as chips card from the back of his car, except it now has the burden of a very highly paid board, whom seem to have made no real changes, and have just gone round with the wheels.I have yet to read anything substantially positive from the CEO, what I do read is the head winds of exchange rates and increasing labour wages, does she not realise every other industry is facing the same problems, except they are finding ways to deal with it!I have spent time visiting a number of stores (no not all 900) but sufficient to see they are all pretty busy (as many other posters have said) and had the cheek to ask some of the customers would they still buy the cards if they were a few pennies more, the answer "yes, cos where else can I get such good cards at this price? " So if the prices were raised by 6% I do not think the average punter would notice, but an increase in profit would around £24m.Second opportunity I see is that at present all the shops I have visited are in low cost areas on the edge of retail centres, ie the model started 20 years ago by Hoyle when he invested in his first shop, why have they not tried a few shops in high foot fall retail areas.What are they doing about seeking new raw material suppliers, not a mention, their EBITDA is £98 leaving a cost base of some £300m I do not know their cost breakdown, but in so many industries I have researched the tend to be in the order of a third a third a third, labour , materials and overhead, so a lot of opportunity to chase down cost savings, I truly hope Roger Whiteside gets them moving.Finally shocked to see the latest bonus awards at nil costKH 245921 sharesKL 85366ranging from1% to 6% increase in profits over 3 years!!I will be very upset if that is all they can do, and so will the "city"It is no surprise to me that the shares have been so hammered, and it could get worse, unless the BOD start to take positive action instead of telling share holders of the problems they face I remain confident, despite these views, because I believe cards have a long way to go yet, Card is well positioned, and with some really strong innovative leadership, particularly in the marketing area, changes on the BOD, recognition that the views of the "city" really matter, CARD could well be a really good investment, which I know a number of you have already recognised.Good to all - change necessary please Mr Whiteside.zip00
Fishing for whoppers
31 Jan 2018
If you haven't already got one Then I would ask all of you CF shareholders to go and get a lover or two. Hopefully that will entice you to actually buy some cards rather than just watch the footfall, and to improve card sales.Every bit hel
