Company reveals its bigger profits on the cards

In the year to January 31 2013, the Wakefield-based firm’s pre-tax profit soared from £56.2m to £66.1m.

In its recently filed accounts, Card Factory said its results reflected its continued policy of expansion through the store opening programme it was operating.

The business, which employs more than 7,800 people, also upped revenue to £286m from £254.3m in a year when store numbers rose from 611 to 664.

Reports earlier this month suggested Card Factory had raised £165m to pay a dividend to its private equity owner Charterhouse.

Last month it was announced that Card Factory wanted to raise the funds in order to pay a dividend to Charterhouse instead of a stock market flotation or sale.

Charterhouse, which bought the company for £350m in 2010, had previously hoped to achieve between £500m to £700m through a sale or listing after hiring Goldman Sachs last year to consider exit options, but offers fell short of expectations according to reports.

It is understood Charterhouse ditched plans to sell the company and said it would focus on a refinancing of the retailer ahead of a possible initial public offering.

The private equity firm then decided to raise an additional £165m leveraged loan to make a special dividend payment.

The 2010 buyout by Charterhouse generated a significant windfall for founder Mr Hoyle, who spent 13 years building up the business with his wife Janet.

Mr Hoyle and his wife, Janet, founded the greeting cards business in 1997 when they opened their first shop in Wakefield.

The path to success has not always been easy, and in the early days cash flow was a problem because of the company’s rapid ex[pansion.

Restrictions in the supply chain as the company grew were also an obstacle.

Seven years ago, Card Factory took control of the whole process from card design to retail, a decision Mr Hoyle said he was forced to make after his suppliers tried to force up his prices while restricting the quality of product they were selling him.

In 2008 the company took over 74 stores from rival card retailer Celebrations Group, which owned the Card Warehouse and Card Fair brands, after it went into administration.

Five years ago Mr Hoyle decided to step back from the company to spend more time with his two children and in his role at Huddersfield Town FC chairman.

In an interview with the Yorkshire Post he said he inherited the determination to succeed from his mother who was a single parent.