Card Factory management in £26.6m share sale

Card Factory has announced its directors are to sell £26.6m-worth of shares in a time-limited fundraising offer.

The Wakefield-based retailer has seen strong growth in revenue, with shares up 60 per cent since it floated last year. It is now valued at £1.2bn.

It reported 7.5 per cent growth in sales in the three months to April 30. It is on track to open a further 50 stores this year.

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The share offer, which represents 2.2 per cent of the company’s holdings, will be made via an accelerated bookbuild placing - which are sometimes used to raise quick capital for acquisitions.

Directors and members of Card Factory will sell 7.4m shares, the retailer said. Share price closed on Thursday at £3.59.

The selling shareholders will retain 16.6 per cent of the issued shares after the sale.

Card Factory chief executive Richard Hayes will retain an interest in 13.1 million shares in the company, equal to 3.8 per cent of shares.

Darren Bryant, chief financial officer, will retain 6.4 million shares in the company.

In May, Card Factory confirmed Mr Bryant was awarded £4.2m in shares following the group’s stock market flotation last year, bringing his total remuneration to almost £5m in 2014.

The selling shareholders have agreed not to dispose of further shares for three months following the placing, the retailer added.