International cheered by demand for greeting cards

International Greetings, which sells Christmas crackers, cards and stationery, saw underlying pre-tax profits increase 37 per cent to £7.1m in the year to March 31.

The Hatfield-based company, which was formed in 1979 and now sells in 20 countries, said it benefited from a 70 per cent surge in single greeting cards sales in the UK.

The UK division, combined with its Asian markets, make up 53 per cent of group revenue, which increased 2 per cent to £220.8m in the period.

The strong results come after the demise of Clinton Cards, which recently fell into administration, leading to the closure of about half of its stores.

Shares in International Greetings, which supplies Card Factory and the supermarkets, were ahead by nearly 2 per cent after the results were published.

The company said sales in Asia and UK were driven by an increase in low-cost or ‘entry level’ products which helped boost volumes.

It added that it had sold more than two billion linear feet of gift wrap.

The company’s Tom Smith brand, which was acquired 10 years ago, was granted a Royal warrant in 1906, making International Greetings the official maker of crackers each year for the Royal Household.

International Greetings also owns licences to make products branded with Simpsons, Peppa Pig and Disney’s Toy Story designs and accounts for some 50 per cent of gift wrap sold in the UK.

Chief executive Paul Fineman said: “I am delighted to report another year of robust, sustained growth across the group, with operating profit, before exceptional items, exceeding market expectations.

“Our focus on efficiency, excellent standards of customer service and product innovation, has allowed us to achieve growth in both sales and profits, whilst debt continues to decrease as our cash generation increases.

“The investments we have made in relocating our manufacturing facilities in China, merging our sourcing facilities in Hong Kong and installing a state-of-the-art gift wrap manufacturing plant in Holland, will enable us to remain highly competitive in the future.”