Clinton Cards prelims impress

Profits at the card and gift retailer, which operates the Clintons Cards and Birthdays fascias, jumped to£17 million in the 52 weeks to July 29, compared with£6.1 million last year.

Birthdays’ losses were reduced by 36 per cent to£7.3 million. Like-for-likes at Clintons rose 2.4 per cent and Birthdays was up 4.3 per cent.

However, group sales slid to£460.1 million, compared with£472.3 million the previous year. The retailer said the sales decline was a result of trading from 73 fewer stores, with 12 fewer Clintons and 61 fewer Birthdays.

Clinton Cards chairman Don Lewin said: “The combination of trading conditions, a focus on controlling costs and improved product margins, together with store rationalisation, was reflected in significantly improved profits. Trading in both brands has increased on last year and, while conditions on the high street remain challenging, we believe the group will make further progress in the current period.”

In the nine weeks to September 30, Birthday’s like-for-likes jumped 4.8 per cent, with Clinton Cards up 2 per cent. Clinton Cards group managing director Clinton Lewin said: “Although trading remains challenging on the high street, we are prepared for the all important Christmas trading period.”

Numis analyst Jose Marco said: “The company has made a very strong start to the year, however it is still early days. We are pretty comfortable with the company’s earnings improvement over the next couple of years as much of this will be driven by the closure of under-performing Birthdays stores, which should be very much within the control of the company.”