Unexpected gift for Clinton Cards

Shares in the firm rose 5 per cent as Clinton said its tight rein on costs has helped it trade through a difficult high street climate.

Pre-tax profits for the 26 weeks to January 31 were 29 per cent higher at 19.6m after a "very encouraging" first half, with like-for-like sales up 3 per cent.

Despite its cautious view of prospects, Clinton said the sales improvement in the first half was spread across its range of cards, gifts and gift wrapping. Total revenues were up 2 per cent at 191.1m.

The cost savings have come from reining in capital expenditure, which fell from 5.9m to 2.2m, of which 1.2m was spent on new stores and refurbishments.

Debts were also cut to 35.9m from 45.1m during the period.

Numis Securities analyst Andrew Wade upgraded his profits forecast for this year from 13.7m to 16m after the seasonally weaker second half is taken into account, as well as forecasting annual profits of 18m next year.

The group's loss-making subsidiary Birthdays was put into administration last year but profits have also been helped by the group's acquisition of the chain's better performing stores from administrators in June and negotiations with landlords which reduced its rent bill.

The Birthdays brand generated 35m in revenues from 186 outlets, including 24 Pure Party stores, with operating profits of 1.1m.

Clinton Cards was founded in 1968 when current chairman Don Lewin

opened his first shop in Epping, Essex.

The group has 861 stores under the Birthdays and Clinton brands.