Card Factory PLC (CARD) 2024年年度報告「LSE」.pdf

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1、celebrate all lifes momentsAnnual Report and Accounts 2024We are the UKs leading specialist retailer of cards,gifts and celebration essentials,with an estate of over 1,000 stores across the UK&Ireland as well as an expanding international presence in South Africa,Australia and the Middle East,and a

2、growing online and omnichannel offer.To deliver on our purpose of making sharing in and celebrating lifes moments special and accessible for everyone,we design and manufacture an extensive range of high quality cards,gifts and celebration essentials at exceptional value.Welcome to cardfactory where

3、everyone can celebrate lifes special momentsStrategic Report1 FY24 highlights2 Our focus8 Our investment case10 Chairs statement12 Our markets14 Our brand16 Our business model18 CEOs review20 Opening our New Future strategy22 Strategy in action32 ESG 40 Climate change and TCFD48 Our stakeholders(Sec

4、tion 172 statement)56 CFOs review64 Risk management69 Non-financial and sustainability information statementFinancial Statements116 Independent auditors report 124 Consolidated income statement124 Consolidated statement of comprehensive income125 Consolidated statement of financial position 126 Cons

5、olidated statement of changes in equity 127 Consolidated cash flow statement 127 Notes to the financial statements155 Parent Company statement of financial position155 Parent Company statement of changes in equity156 Parent Company cash flow statement156 Notes to the Parent Company financial stateme

6、ntsCompany Information161 Glossary165 Advisers and contactsGovernance70 Board of Directors72 Chairs Letter Corporate Governance73 Corporate Governance Report80 Chairs Letter Audit&Risk Committee81 Audit&Risk Committee Report84 Chairs Letter Remuneration Committee88 Directors Remuneration Report Remu

7、neration Policy96 Annual Report on Remuneration 108 Chairs Letter Nomination Committee109 Nomination Committee Report110 Directors Report115 Statement of Directors ResponsibilitiesContentsDelivering on our purposepages 2-3Delivering through our strategy pages 4-5Delivering through our people and cul

8、turepages 6-72.4(4.0)15.1FY2212.9FY2314.4FY24FY21FY2011.1(16.4)65.2FY2252.4FY2365.6FY24FY21FY20113.679.9124.8FY22107.8FY23118.7FY24FY21FY20(3.9)0.1(0.5)FY226.7FY237.6FY24FY21FY200.92.41.1FY220.5FY230.3FY24FY21FY20364.4285.1451.5FY22463.4FY23510.9FY24FY21FY20GovernanceFinancial StatementsStrategic Re

9、port1FY24 HIGHLIGHTSDelivering the building blocks for growth65.6mProfit Before Tax(m)14.4pBasic EPS(p)Summary of the financial period Continued positive momentum across thebusiness driving revenueand profit growth.Strong performance in stores underlinesstrategic role in our omnichannel ambition.Str

10、ategy delivering positive outcomes across all building blocks of growth.Cultural progress and new sustainability strategy launched.Further strengthening of the balance sheet with reduction in net debt.Updated capital allocation policy in place and resumption of dividend.510.9mRevenue(m)+7.6%cardfact

11、ory LFL sales(%)2(excluding periods of store closure)0.3xLeverage2(excluding lease liabilities)118.7mOperating Cash Flow(m)More about us online:1.The above financial KPIs are either measures calculated in accordance with IFRS(see financial statements starting on page 124)or are Alternative Performan

12、ce Measures.2.See the glossary on pages 161 to 164 for Alternative Performance Measures(APMs)and other explanatory information.FY24 means the financial year to 31 January 2024.Financial Key Performance Indicators(KPIs)1Card Factory plcAnnual Report and Accounts 20242Delivering on our purpose is help

13、ing cardfactory unlock our future growth.Through our extensive and expanding range of affordable and high-quality cards,gifts and celebration essentials we are helping customers create truly memorable celebrations that drive satisfaction and trust.Our extensive store network and the investments we a

14、re making in our online and omnichannel propositions make it easier to create a celebration.Through our partner network in the UK and internationally,we are more accessible to more customers in more places.OUR FOCUSWe make sharing in and celebrating lifes moments special and accessible foreveryone.p

15、urposeDelivering on our GovernanceFinancial StatementsStrategic Report3We are living our purposeOur purpose is the thread that ties everything we do at cardfactory together,ensuring we deliver an exceptional experience for our customers,drive product innovation and achieve our online and omnichannel

16、 ambitions.Within our extensive store network,colleagues are engaging customers to understand how we can help make the life moment they are celebrating special.As we transform into an omnichannel business,our offer has never been moreaccessible.We are diversifying our product range,expanding our gif

17、ts and celebration essentials offer and ensuring that we provide the broadest selection of products and categories that can help our customers celebrate the special moment that they are planning both inthe UK and internationally.Card Factory plcAnnual Report and Accounts 20244OUR FOCUS CONTINUEDstra

18、tegyDelivering through our We are the leading omnichannel retailer of cards,giftsand celebration essentials,with an extensive UK&Ireland footprint and growing international presence.FY24 was a year of delivery for our Opening Our New Future strategy.We achieved significant milestones across all our

19、areas of focus.By delivering on the strategy,cardfactory will become:The first omnichannel brand helping customers everyday to celebrate lifes special moments;The UKs no.1 destination for all customers seeking unrivalled quality,value,choice,convenience and experience;and A global competitor putting

20、 cards and gifts in the hands of more customers.GovernanceFinancial StatementsStrategic Report5Delivering on our strategyAs we deliver on our Opening Our New Future strategy,we are achieving significant milestones across our three primary areas of focus:1.online and omnichannel;2.gifts and celebrati

21、on essentials and 3.partnerships.Core business growth continues with investment into the core of the business:our stores in the UK and Ireland,with highlights including 26 netnew stores opening in FY24,with 43 stores opened or refurbished over the year.Online&omnichannelOur first omnichannel proposi

22、tion,Click&Collect,which combines our online and stores channels,has been operating across our UK stores for almost 12 months.Wealso completed the replatforming of both cardfactory.co.uk and gettingpersonal.co.uk,which provides the foundation we are building on while we invest in our online future,e

23、xpanding our online range,and improving our customerexperience.Gifts&celebration essentialsThe continued expansion of our gifts and celebration essentials ranges is driving sales growth.This has been supported by a space realignment programme across 729 UK&Ireland stores that has created additional

24、space for these products without sacrificing the breadth of range for our greeting cards.PartnershipsFY24 saw two milestone partnership agreements signed.Through our partnership with Liwa,the first cardfactory stores are trading in the Middle East.With Matalan,we have expanded our partnership to ful

25、l rollout across all their UK stores.Finally,our acquisition of SA Greetings added 6,500 partnership distribution points as well as company owned and franchise-operated Cardies stores in South Africa.Find out more about Our strategy onlineScalable central model,driving organisational efficiency Crea

26、tive|Manufacturing|TechnologyExperienceConvenienceOpening Our New FutureValue&choice See our Strategy section on pages 20-3126 net new store openingsCard Factory plcAnnual Report and Accounts 20246Creating a culture that is driving growthCreating a culture that unlocks cardfactorys potential is fund

27、amental for a business which is serious about a growth agenda.The milestones we have achieved on the delivery of our strategy,as outlined in our strategy section,pages 20 to 31,can be attributed to the incredible headway we have made evolving our culture and behaviours.Transforming business culture

28、is a journey.It is about understanding the fundamental challenges,unlocking anaturalaffinity for doing the right thing,and training toencourage the right outcomes.We have made substantial progress on this cultural transformation journey and the progress we have made isalready paying off.OUR FOCUS CO

29、NTINUEDcultureDelivering through our people and GovernanceFinancial StatementsStrategic Report7Enablers of changeCultural transformationWe have placed customer data at the heart of our decision-making,resulting in a continually improving range,which is surprising and delighting customers and so driv

30、ing sales.Developing our leadershipWe have had a strong focus on building our leadership team capability,ensuring we have the right people with the right capabilities and experience to drive forward our growth agenda.Transformation capabilityLed through our Transformation Office,we are building the

31、people-led capabilities to deliver on the five-year transformation plan.Pay and benefitsWe are using pay and benefits changes as a lever for retaining and attracting fresh new talent while ensuring that everyone is rewarded fairly,inclusively and competitively.ValuesOur values are actively embraced

32、ineverything we do,from the way wemake decisions,and interact with our customers and each other,through tohow we are approaching the delivery of our strategy.5th Best Big Company to Work For in 202311.Best Companies award 2023.Read more about our colleagues onpages5253Card Factory plcAnnual Report a

33、nd Accounts 20248Opportunity for future growthcardfactory is now growing within the celebration occasions market,combining our greeting cards offer with our growing gifts and celebration essentials ranges.We are addressing a c.13.4 billion market in the UK with further growth opportunities internati

34、onally through ourfranchise and wholesale partners.Virtuous circle of design,manufacturing and retail provides barriers to entryWe design 80%of our cards and 70%of our gifts and celebration essentials in-house through our team of over 70 creative designers,verse writers and creative management.This

35、allows us to rapidly respond to changes in customer taste and needs,from changing styles and genres,attracting Gen Z shoppers to understanding when customers are looking for support in difficult times,such as our range of cards for encouragement and wellbeing for children.In FY24,we manufactured 198

36、 million of our cards and other products at our Printcraft production facility in Baildon,Yorkshire.Established brand making celebrating lifes moments accessible for allWe are the most trusted brand in our sector in the UK1 with our brand anchored in the core truth that life needs celebration.Howeve

37、r,our customers find bringing celebrations to life is not always easy;it can feel both time consuming and costs can add up.From this,we defined our brand purpose:We make sharing in and celebrating lifes moments special and accessible for everyone.In FY24,we began to bring the brand to life across al

38、l touchpoints(see pages 14 and 15).At the same time,we have made enormous headway on improving our gifts and celebration essentials offer,which is the biggest growth area.We are ranked no.1 for good value and ranked the no.1 for a wide range of products1.OUR INVESTMENT CASEInvesting in growthIn FY25

39、,we will continue delivering on our Opening Our New Future strategy while maintaining growth across our market-leading store estate.Expanding within c.13.4 billion UK market80%of cards and 70%of gifts are designed in-houseNo.1 for range,value and choice1.Savanta BrandVue Feb 2023 to Jan 2024(Awarene

40、ss:89%,Consideration:37.4%).Keycompetitors are specialist UK card and giftretailers.2.See the glossary on pages 161 to 164 for alternativeperformance measures(APMs)andother explanatory information.FY23 meansthe financial year to 31 January 2023.GovernanceFinancial StatementsStrategic Report9Growing

41、sales and profitGroup revenue of 510.9 million in FY24 was up+10.3%compared to FY23,reflecting continued positive momentum across the business and effective execution of our strategy.Total store revenue grew+8.8%,including the contribution from 26 net new store openings during the period.cardfactory

42、s LFL2 revenue grew+7.6%,driven by a strong store performance,with growth in card,gifts and celebration essentials,combined with positive traction in online.This led to an adjusted PBT growth of 13.2million(+27.0%),excluding one-off gains,to 62.1 million(FY23:48.8million).Final dividend of 4.5 pence

43、 recommended(record date 31 May 2024).Proven sources of growthOur online sales rose during the key Christmas trading period driven by range expansion,improved customer experience and the full rollout of Click&Collect across our UK stores our first omnichannel proposition to go live.We completed our

44、space realignment programme across 729 stores in the UK&Ireland,which delivered significant growth across gifts and celebration essentials in the key Christmas trading season.Highlights included+25%LFL forgifts and+77%for confectionery,while still driving growth for cards.Significant progress made e

45、xpanding our partnership relationshipsThrough our partnership programme,cardfactory now has presence across Australia,South Africa and the Middle East.This follows the opening of our franchisees first stores in Dubai,Abu Dhabi and Al Ain,as well as the acquisition of SA Greetings,which includes 23 c

46、ompany-owned Cardies stores,an online store,and four franchise-operated stores,as well as 6,500 partnership distribution points across South Africa.In the UK,as well as the continued strength of our relationship with Aldi,we expanded our agreement with Matalan to rollout across their 223 store netwo

47、rk.62.1m adjusted PBT (up from 48.9m in FY23)2Click&Collect nationwide UK rollout completedOver 8,000 partnership distribution pointsCHAIRS STATEMENTPaul MoodyNon-Executive ChairresultsDrivingIntroductionThe strong revenue growth we saw in the year demonstrates the strength of our customer propositi

48、on and the benefits of the Opening Our New Future strategy.There is continued good momentum within the business with our offer is resonating well withour customers.Our value offer remains crucial to our success,particularly during the ongoing cost-of-living challenge that dominated consumer spending

49、 decisions through 2023.Range development and innovation to broaden customer appeal ensured we remained relevant for customers to supportgrowth.Investments made in support of our strategy are now delivering positive outcomes across all growth areas with the store evolution programme,Click&Collect an

50、d new partnerships being particular highlights.This success can substantially be attributed to the cultural journey cardfactory has been on over the past three years,which has transformed our ability to understand the needs of our customers and execute at pace,thanks to the hard work and dedication

51、of colleagues.In FY24,it was clear that as cardfactory transforms itself into a truly customer-centric business,we have been able to more effectively respond to the needs of ourcustomers.Year in reviewOur store estate remains our greatest asset,with the revenue performance reflecting the strength of

52、 our value and quality proposition,combined with the positive contribution we saw from the store evolution programme.The market-leading performance of our stores underlines the importance of this customer channel with further opportunities for growth,driven by product and range development,whilst pr

53、oviding a competitive advantage in helping deliver our omnichannel strategic ambition.Stable transaction volumes,and an increase in average basket value resulted in good levels of growth,which reflects our strategic focus to increase our share of the gifts and celebration essentials categories;they

54、now represent over half of sales.At the same time,we continued to enjoy good levels of Like-for-like(LFL)card sales growth.We also saw strong seasonal performance across the year,especially Christmas,as customers responded well to our festive offer across cards and the expanded gifting range.Card Fa

55、ctory plcAnnual Report and Accounts 202410Find out more about our approach to GovernanceWe were encouraged by the performance in cardfactory.co.uk,which gained traction in the year as a direct consequence of ongoing investment in online infrastructure and the customer experience.Notably,the successf

56、ul launch of our Click&Collect service has reinforced our belief in the potential foromnichannel.Progress in building our partnerships channel was evidenced by signing our Middle East partnership and the expansion of our Matalan trial to a full UK rollout across 223 stores.In April 2023 we were plea

57、sed to complete the acquisition of SA Greetings.Performance has been in line with expectations and we remain positive about the wholesale opportunity that this acquisition provides.Outlook and macro environmentWe continue to operate within a resilient market,which demonstrates a continuing shift in

58、card purchases back to physical stores.We remain focused on developing our core value and quality proposition and maintaining low price points as customers continue to seek value for money.The Board is encouraged by trading since the start of the new financial year,which has been in line with expect

59、ations.We saw positive momentum continue across our FY25 Spring seasons of Valentines Day and Mothers Day,with good growth across all product categories.The planned capital expenditure of 25 million in FY25 will ensure that we are able to deliver further strategic progress including investment in st

60、ores,technology infrastructure and the next phase of the ERP implementation to support operational efficiency and effectiveness improvements.Our clear focus on increased efficiencies and productivity,alongside targeted pricing action,will enable us to navigate the inflationaryenvironment.ESG strateg

61、yIn FY24 we launched our Delivering a Sustainable Future plan outlining an updated and expanded sustainability plan to the end of 2028,with clear and transparent commitments and goals.The strategy is built around five important areas for our business,both now and in the future:(1)Climate;(2)Waste an

62、d Circularity;(3)Protecting Nature;(4)People&Equity;and(5)Governance;each aligned with the relevant UN Sustainable Development Goals(SDGs).This ambitious plan is aligned to the outcomes of a materiality assessment refresh completed in FY24 and includes significant focus on reducing our Scope 1,2 and

63、 3 emissions;waste generated across our operations;understanding and addressing our impact on nature and biodiversity;and ensuring we continue to provide the right level of pay,benefits and support for colleagues acrosscardfactory.Board appointmentsIn May 2023,the Board welcomed Matthias Seeger as C

64、hief Financial Officer.Matthias brings extensive financial experience to the business with the expertise and values that will support cardfactorys strategic projects and significant change programme over the next few years.Capital allocation policyThe Board is pleased to confirm that,following the r

65、epayment of CLBILs in September 2023 and Term Loan A at the end of January 2024,we are no longer restricted from paying dividends.Therefore,the Board has approved an updated capital allocation policy,which reflects our commitment to balancing investment in driving the growth of the business and deli

66、vering cash returns to shareholders,which together should drive shareholder value.At the AGM on 20 June 2024,the Board will recommend reinstating an ordinary dividend of 4.5p per share for FY24,which includes an amount to reflect the fact that it was not able to pay an interim dividend in the year.P

67、ending shareholder approval,the dividend will be paid on 28 June 2024 with a record date of 31 May 2024.This is a progressive dividend policy,targeting a dividend cover of between 2x and 3x Adjusted EPS with a target Adjusted Leverage(exc.Leases)of below 1.5x throughout the financial year.SummaryWit

68、h continued positive momentum across the business,the Board remains confident in the compelling growth opportunity for the Group and in the delivery of the FY27 targets outlined at the Capital Markets Strategy Update in May2023.Paul MoodyNon-Executive Chair30 April 2024GovernanceFinancial Statements

69、Strategic Report11 Overall Current Consumer Sentiment Index702-2-4-6-8-10-12Feb22Feb23July22July23Jan24OUR MARKETSThe opportunity in these markets is significant with an estimated 8 billion5 addressable greeting cards opportunity,which increases to c.80 billion5 when celebration essentials and gifts

70、 areincluded.Over 27 years,we have established a strong foundation in the UK greeting cards market by consistently delivering great range and quality at low prices.We are using this foundation to grow successfully into adjacent categories across gifts and celebration essentials,for instance within b

71、alloons and soft toys.Market trends consumer and societyOver the past year,the celebration occasions market,like other retail markets,was and continues to be impacted by macro trends in the economy and in consumer behaviour.Cost-of-living pressure on households,driven by increased consumer prices an

72、d interest rates,has suppressed consumer spending power.The cost of posting cards has also been impacted with Royal Mail price increases in April and October 2023 adding 30p to the cost of first-class standard postage.With 71%consumers posting at least one of their next five greeting cards6,postage

73、price inflation impacts the cost of card giving for the majority.Despite this inflationary pressure we have observed a gradual increase in consumer economic confidence across 2023.Globaldatas index of Overall Present Consumer Sentiment,although remaining negative,has increased from-6.5 to-3.7 betwee

74、n February 2023 and January 20247.The celebration occasions market continues to be resilient.Kantar UK data indicates that in physical retail the market grew year-on-year by+1.7%.This increase is driven by growth in both consumer volume(+0.7%)and shopper spend(+2.8%)8.Consumers continue to seek valu

75、e for money in their purchasing of greeting cards,which is maintained as a key driver of retailer choice alongside wide range,quality,convenience and availability9.779m Overall UK card market volume(2023)913.4bnTargeted UK celebration occasionopportunity2,3,480bnTargeted international opportunity5Ov

76、erview of our markets Our market is defined by everything customers need to celebrate a life moment this is the celebration occasions market.It is made up of three categories:greeting cards,gifts and celebration essentials.Greeting cards cards purchased in-store or online that help customers to cele

77、brate all of lifes moments and occasions,such as birthdays,weddings and Christmas.Gifts items purchased to help celebrate a person or occasion,bought individually or with a card.Includes stationery(e.g.calendars and notebooks)and craft,small toys,books,candles,homewares such as mugs,glassware etc.an

78、d other small gift items such as keyrings and novelty gifts.Celebration essentials all the products needed to turn a life moment into a celebration occasion.Includes balloons,party products,wrap,bags and accessories.This broad celebration occasions market is significant in size and creates a targete

79、d cardfactory market opportunity of c.13.4 billion in the UK.This includes the UK greeting cards market worth c.1.4 billion2,UK celebration essentials at c.2 billion3 and the UK market(forthese categories)of gifts at c.10 billion4.Internationally,we have identified opportunities for cardfactory in s

80、even priority markets.+1.7%Celebration occasion physical retail market value growth(UK)8+1.2pptCelebration occasion customers shopping with cardfactory(UK)8Card Factory plcAnnual Report and Accounts 202412Celebrating lifes moments is an important part of the way we live.96%ofUK adults celebrate one

81、or more life moment occasions,ranging from deeply personal life moments to significant collective cultural moments.These occasions are much cherished,and shape individual,family and community habits and rituals.Helping customers celebrate these occasionsis what cardfactory is here to do.To deliver t

82、he ambition of the Opening Our New Future strategy,our focus is to grow within the celebration occasions market bothin the UK&Ireland and across our seven target international markets.Personal SocietalUK greeting cards volume,channel mix online/offline 2022-20239 20222023OnlineOffline85%15%83%17%1.B

83、espoke celebration occasions research commissioned with Disrupt(2000 consumers surveyed).Dec 2023.2.cardfactory bespoke annual UK Greeting Card Market Survey FY23(4,501 participants)commissioned with Dynata.Feb 2023.3.Kantar Worldpanel Plus(Physical Retail)data to 52 w/e 22 Jan 2023&GlobalData Retai

84、l Occasions Series UK,Partyware 2022.4.Kantar Worldpanel Plus(Physical Retail)data to 52 w/e 22 Jan 2023&Whitecap Consulting Ltd.Sept 2021.5.GlobalData Global Expansion Project.Jul 2022.6.cardfactory survey via OnePulse.Nov 2023.7.GlobalDataRetails UK Present Consumer Sentiment Report.Jan2023.8.Kant

85、ar Worldpanel Plus,Celebration Occasions Physical Retail,52wk data to end Jan 2024.9.cardfactory bespoke annual UK greeting cards market surveys Feb 2023 and Feb 2024(3034+participants annually)commissioned with Dynata.10.Kantar Worldpanel Plus,Celebration Occasions Physical Retail,52wk data to 24 D

86、ec 2023.In this context,the cardfactory core proposition continues to resonate strongly.Kantar data indicates that cardfactory has attracted more shoppers,increasing by 1.2ppts to 59.4%8 of UK adults,outperforming the total celebration occasions market.Shopper behaviour continues to evolve with rega

87、rds to online and physical retail channels and is returning to shopping patterns seen pre-2020,before the Covid pandemic.Physical retail channels are benefiting from this return,while the online retail market is still yet to find its new baseline.This continued rebalancing is evidenced through the v

88、olume of cards purchased online declining to 15%in 2023 versus 17%in 20229.Evolving competitive mix with strong performance from celebration specialistsCompetitors within the UK celebration occasions market can be categorised as:grocery multiples(e.g.Tesco,Asda),celebrations specialists(e.g.cardfact

89、ory,Clintons),discounters(e.g.B&M,Home Bargains)and online pure-plays(e.g.Moonpig,Funky Pigeon).The competitive context in 2023 has evolved.Within the physical retail celebration occasions market,grocery multiples and celebration specialists have experienced sales value growth of 1.5%and 2.5%respect

90、ively10.This contrasts with value decline of 4.1%for the discounter segment.Greeting cards The UK card market consumer volume continues to show resilience amid squeezed household budgets.41.6 million UK adults purchased single greeting cards in 20239,slightly up on adults purchasing in 2022(41.2 mil

91、lion).The value of greeting cards purchasedhas also grown with the average price paid increasing 16%from 1.66 to 1.939.While the proportion of consumers purchasing cards remains consistently high,the volume of cards purchased in 2023 dropped by 8%from 851 million to 779 million9 driven by cost-of-li

92、vingpressures.Against a challenging 2023 consumer backdrop,cardfactory has been successful in reinforcing our leadership position and building share of spend of the greeting cards market.While greeting cards continue to be a core focus,the dynamics and total size of the market at c.1.4 billion highl

93、ights the importance of our strategy and the sizable opportunity to grow in the c.12 billion celebration essentials and giftsmarkets.GiftsThe UK gifts market has experienced growth in 2023.Kantar physical retail data10 for gifts indicates+2.6%growth in consumer spending.Three sub-categories are driv

94、ing this growth:stationery and craft(+9%),gift vouchers and experience days(+5.5%),and soft toys(+3.7%).With growing consumer confidence and decreasing inflationary pressure on household finances,we expect to see a continued growth trend within gift purchasing across 2024.Celebration essentials Cons

95、umers purchasing celebration essentials remains high at an overall level of 93.6%of the UK adult population.This represents a YOY participation growth of 0.4%.With more consumers,overall spending on celebration essentials has increased+3.1%across 202310.First experience momentsSmaller,more personal

96、moments which are a first in life e.g.first day at school,first holiday,first partner/loveLifetime momentsThe most universal,but not guaranteed,these are happy times such as marriage,having children,birthdays,anniversariesSombre life momentsMoments we all go through but are less positive such as ill

97、ness and deathAnnual calendar momentsMore recent traditions such as Valentines Day,HalloweenAchievement momentsMilestone moments that transition you through life e.g.passing a test,graduation,buying first home,moving to a new placePersonalised life momentsSpecific rituals or traditions that are idio

98、syncratic and specific to the individual or their close family e.g.arrival of family pet,remembering a loved oneCultural collective momentsMoments often based on religious festivals or age-old traditions e.g.Christmas,Easter,Eid,DiwaliCustomer life moment celebrations1 Personal SocietalGovernanceFin

99、ancial StatementsStrategic Report13Read more about our Brand onlineOUR BRANDWe have a market leading and well-loved brand which has grown over 27 years since our first storeopened in Wakefield in 1997.Our appeal is nationwide and universal across consumer segments.Nine out of ten consumers areaware

100、of cardfactory as a brand,and almost fourin ten consumers would consider us when choosing aretailer for a celebration occasion3.A core enabler of the Opening Our New Future strategy is the strength ofthe cardfactory brand.At its heart isour purpose to make sharing in and celebrating lifes moments sp

101、ecial and accessible for everyone which we have now embedded across our organisation.Customers associate cardfactory with value and quality.Bespoke research conducted in 20231 reports that the cardfactory brand is strong in the main drivers of quality including a wide range and cards that suit recip

102、ients.This combines with our bespoke value research from 20222 to highlight cardfactorys overall strength in value for money.Customers who shop with us show a high level of satisfaction,as reflected by our strong net promoter score relative to the competitor average3.Card Factory plcAnnual Report an

103、d Accounts 202414Bringing our brand to life for customers and colleaguesHaving defined and launched our purpose and values in 2022,we built on those foundations in 2023 to embed the brand in the experiences we create both internally and externally.1.Brand Board and ambassadors In June 2023 we appoin

104、ted a team of brand ambassadors from across the organisation.Their role includes championing the brand and promoting the delivery of the purpose within their respective functions.We also launched our Brand Board,a bi-monthly meeting of our ambassadors.The aim of the Brand Board is to facilitate the

105、development of ideas,sharing of best practice and providing oversight to the delivery of functional brand plans.2.Brand marketing An example of our ongoing focus on strengthening our brand is the celebrate a great deal marketing campaign which launched in Q3 of 2023.The campaign aimed to reinforce p

106、erceptions of value for money and lowest price both important drivers of retailer choice in the market.The campaign ran nationally in-store,across social media and digital display advertising.Additional selected regions ran radio advertising as part of a broader programme of media investment testing

107、.The campaign succeeded in improving brand consideration and raising brand image attributes for value and quality.From consumer research completed before and after the campaign,non-cardfactory shopper consideration increased 4ppts.Brand image attribute strength for quality and good value increased b

108、y 7ppts and8pptsrespectively4.3.Brand-led service experience Our brand strategy also drives the experiences we deliver and features prominently in our customer service improvement initiative,known as The cardfactory Way(see pages 30 and 31).As we look forward into 2024 and beyond,we will continue to

109、 use our brand purpose for inspiration.It will guide all colleagues to focus on our customers needs so we can continue helping customers celebrate all of lifes moments.+19pp difference brand awareness vs key competitor average3+20ppdifference in consideration vs key competitor average3+14.1 differen

110、ce in NPS score vs key competitor average31.Brand awareness2.Brand consideration3.NPS Good value Wide range of products Ease of finding what you want For people like you Trusted Convenient4.cardfactory no.1 metrics35.Values We lead the way We celebrate our differences We make it happen We do the rig

111、ht thing We care1.Bespoke cardfactory quality research commissioned with boxclever(430+consumers).June 2023.2.cardfactory price and value research commissioned with boxclever,November 2022.3.Savanta BrandVue Feb 2023 to Jan 2024.Key competitors are specialist UK card and giftretailers.4.Savanta besp

112、oke campaign impact research.September and October 2023.15GovernanceFinancial StatementsStrategic Report2.Manufacturing1.Design3.Retailing3.2.1.OUR BUSINESS MODELA unique vertically integrated model80Design colleagues469Support colleagues133Manufacturing colleagues237Distribution colleagues9,075Reta

113、il colleagues1,058Retail storesData-led design ensures rapid response to changing consumer trends and preferences.End-to-end control of product chain allows flexible and rapid adaptation e.g.to reprint an unexpectedly popular line.Card designs are planned in line with the forward price architecture

114、(design to the budget).Large-scale print facility inBaildon,Yorkshire,(Printcraft)is a key USP forcardfactory.Produces 70%of all cards we retail through our store network as well as our online cards.Continued investment ensures lowest cost to operate print facilities and maintains quality of product

115、.Own estate of over 1,000 retail stores across UK&Ireland;online;and partnering with other retailers to extend reach.UK&Ireland store network is main route to market.Together,our stores and online presence is unlocking our omnichannel growth opportunity.All data correct as at 31 January 2024.Card Fa

116、ctory plcAnnual Report and Accounts 202416Our distribution capabilityWe are in the process of expanding our distribution capacity,providing the capacity headroom through the five year strategy for all omnichannel and partner needs.Our ongoing potentialWe continue to grow our store estate of 1,000+st

117、ores in the UK&Ireland while developing our omnichannel capabilities.We will have additional touchpoints through our online offer and via our UK and international retail partners.Our production capabilityOur in-house manufacturing facility produces cards for our UK,Ireland and international partner

118、stores.We can produce new ranges in as little as four weeks and remanufacture quick selling lines in just days.This allows us to maintain both our quality and value formoneycredentials.Our buying capabilityAs part of our expansion both internationally and across gifting,we are developing the sourcin

119、g and buying capability that we need to support a fully optimised global supply base.This ensures we can deliver at speed to market with a continual focus on sustainability,product development and cost management,enabling our offer to exceed customerexpectations.Our design capabilityOur design capab

120、ility is evolving to use more insights,sales data and trend analysis.This ensures our product offering for both card and gifts meets the needs of loyal customers while appealing to new demographics in the UK and for our partnersinternationally.As our business transforms itself into an omnichannel re

121、tailer with an international presence,our business model will evolve.As we deliver on our Opening Our New Future strategy,we are evolving our business model in five areas:Insight-led designSpeed to market from UK productionSupports global supply baseCapacity headroom to meet demandExpanding customer

122、 touchpointsGovernanceFinancial StatementsStrategic Report17CEOS REVIEWDarcy Willson-RymerChief Executive OfficerDrivingIntroduction Three years into cardfactorys transformation journey,we are seeing the positive impact of the changes that have been made across the business.The strong revenue growth

123、 we delivered in FY24 is testament to the successful delivery of our change programme and the hard work of colleagues throughoutcardfactory.By putting the customer first in our decision-making,we have continued to innovate and expand our offer while remaining true to our value for money credentials.

124、As we broaden our appeal by extending our range across the celebrations occasions market,we are seeing positive responses from customers as they choose to pair their card purchases with gifts and celebration essentials products.As we continue to invest in our Opening Our New Future strategy,we are d

125、elivering on the key initiatives at pace and ensuring that we are maximising our growth opportunities in store,across our digital channels,and through our expanding partnership programme.Progress on our strategy delivery is ensuring we are on track to meet our growth targets over the five years of t

126、he plan.FY24 performanceIn FY24,revenue grew by+10.3%to 510.9 million for the twelve months with store revenue,which represented 93.8%of total Group revenue,growing by+8.7%compared to the prior year.On a Like-for-like(LFL)basis store revenue grew+7.7%,with development of our store layout,experience

127、and ranges driving growth,alongside the annualisation ofFY23 targeted price increases.Transaction volumes remained stable and,combined with an increase in average basket value of+8.1%LFL,demonstrated the importance of focusing on growing our share of the gifts and celebration essentialscategories.Ca

128、rd Factory plcAnnual Report and Accounts 202418As we continued to respond to changing customer needs through ongoing range enhancements,we have increased our average card selling price from 1.09 to 1.21.We saw card growth continue at+4.9%while still protecting our value-for-moneyproposition.The posi

129、tive impact of our store evolution programme enabled the optimisation of space within stores and balance between card,gifts and celebration essentials.This contributed to strong LFL growth in gifts+15.8%and celebration essentials+6.7%.We continued to see strong seasonal performance across the year w

130、ith our Christmas offer performing particularly well,leading to year-on-year increases in transactions and average basket value.Customer research is driving our greeting cards designs in response to consumer trends,leading to a wider breadth of celebratory captions with examples including cards from

131、 pets as well as broader diversity and inclusion.Investment in our online capability,platform performance,and customer experience improvements,as well as further range expansion,led to improved performance in cardfactory.co.uk with LFL sales growth of+0.4%.This traction led to an encouraging perform

132、ance in the second half of the year with 11.4%LFL sales growth with this positive performance continuing into FY25.There was good progress on our partnership strategy with both new and existing retail partnerships,plus the acquisition of SA Greetings,driving revenue growth of 12.0 million to 17.0 mi

133、llion.this included positive contribution in FY24 from our new partnership with Liwa Trading Enterprises in the Middle East and from expanding our partnership with Matalan in theUK.Strategy deliveryFY24 was a year of delivery for our Opening Our New Future growth strategy.We are on track to meet our

134、 growth ambition of revenue of 650 million in FY27,as outlined at our Capital Markets Strategy Update in May 2023.Growth within our core business continued with 26 net new stores in FY24,ensuring we remain on track to deliver 90 new stores over the course of the five-year plan to FY27.Our agile stor

135、e optimisation programme ensures we continue to maintain an exceptional record on store profitability.Within our store evolution programme,we completed our space realignment project in 729 stores which saw everyday card space reduced by 7%.There was no negative impact seen,while gifts and celebratio

136、n essentials were given additional space resulting in sales uplift.The successful rollout of The cardfactory Way customer service excellence programme for all store colleagues led to increased customer interaction on the shop floor,enabling tailored customer service,product recommendations and impro

137、ved basket value.Range improvements and expansion continued for card,gifts and celebration essentials,with new own-label ranges,a new stationery range and the introduction of key licensed ranges.Our omnichannel programme saw the successful nationwide rollout of our new Click&Collect service with cus

138、tomers opting for 7.8%of online orders to be collected in-store and 50%of these Click&Collect transactions were from customers new to cardfactory.co.uk.We have already reduced customer order to collection lead times from 3-5 days at rollout to 1-2 days on average by September 2023.Wider digital inve

139、stment saw the completion of the replatforming project for cardfactory.co.uk and gettingpersonal.co.uk,enabling benefits of using consistent systems,tools andprocesses.Our partnership programme in the UK continued to expand with the rollout across all 223 Matalan stores by December 2023.Internationa

140、lly,the first four franchised stores were opened in the Middle East with up to 36 stores planned over the next four years.Response from customers in the Middle East has been positive and as expected,gifts and celebration essential ranges have performed well given the strong gifting culturein this ma

141、rket,with stationery,soft toys,balloons and gift bags contributing to almost 50%of total sales.The acquisition of SA Greetings has provided a leading presence in the South African market through 27 Cardies stores,an online store and 6,500 partnership distribution points(operated by wholesale partner

142、s),while opening up strategic wholesale growthopportunities.People and culturecardfactory has been on a transformative cultural journey over the past three years and the growth we are seeing as a business can be linked to the cultural progress we have made.Today,our focus is on customer,community an

143、d purpose.By building a deep understanding of the celebratory needs of our customers,both in the UK and internationally,we are able to adapt and change so that we continue to lead the market.We are also building an inclusive community within cardfactory and one that is dedicated to giving something

144、back to the communities we work within.Putting our purpose first in everything we do ensures we have a collective and collaborative approach to decision-making.The cultural progress we have made has been considerable.This has been recognised through our externally facilitated Best Companies bHeard c

145、olleague survey,where we received a two-star Outstanding to work for accreditation in September 2023 and were also recognised as the 5th Best Big Company to Work For.ESG progressFollowing the launch of our Delivering a Sustainable Future plan,we made good progress across all areas of focus within th

146、e strategy.One highlight was seeing the results of our waste reduction efforts coming through with the elimination of non-essential single use plastic in our own-label products and packaging,increasing recyclability and engaging with suppliers to reduce waste in products and packaging.In FY25 we wil

147、l take our plans further by publishing our science-based,near-term targets to help deliver our goal of Net Zero by 2050.We are embedding sustainability into business planning and decision-making to ensure our commitments are at the forefront of how we work and the decisions we make every day.See pag

148、es 32 to 39 for more detail on ESG and our sustainability plans.SummaryWith strong operating cash generation,a continually strengthening balance sheet,ongoing reductions in net debt and our updated capital allocation policy in place,we can continue to invest with confidence in the building blocks of

149、 growth.In addition,we continue to proactively manage risks from inflationary headwinds.Having made significant progress on our strategy delivery in FY24,we are confident that we will continue to make strategic and cultural progress in FY25 and meet our FY27 growth targets.Darcy Willson-RymerChief E

150、xecutive Officer30 April 2024The strong revenue growth we delivered in FY24 is testament to the successful delivery of our change programme and the hard work of colleagues throughout cardfactory.”GovernanceFinancial StatementsStrategic Report19Card Factory plcAnnual Report and Accounts 202420OPENING

151、 OUR NEW FUTURE STRATEGYIn FY24,key initiatives were delivered and started across all pillars within our Opening Our New Future strategy.Major milestones were achieved across our three primary areas of focus:1 omnichannel(stores&online);2 gifts&celebration essentials;and3 partnerships.Our ability to

152、 execute on our strategy was achieved by focusing on the right capabilities,systems and structures across the business.By delivering on the strategy,cardfactory will become:The first omnichannel brand helping customers every day to celebrate lifes special moments;The UKs no.1 destination for all cus

153、tomers seeking unrivalled quality,value,choice,convenience and experience;and A global competitor putting cards and gifts in the hands of more customers.cardfactory,Westfield London.Opened April 2024.Value&choice Retaining our UK leadership position incards while growing our gifts and celebration es

154、sentialscategories.Read more on pages 22-24 Convenience Providing cardfactory customers with an outstanding,seamless shopping experience in the UK and internationally.Read more onpages 25-28 Experience Delivering an exceptional experience for customers and a values-led culture of accountability and

155、empowerment.Read more onpages 29-31The leading omnichannel retailer in our sector with an extensive UK&Ireland footprint and growing international presenceValue&choiceExperienceConveniencecardfactoryOpening Our New FutureManufacturingCreativeScalable central model,driving organisational efficiencyIn

156、sight driven product,design and creative content publisher at the heart of cardfactory IPAbility to scale up production to meet increased demand in line with projectionsEnabling greater efficiency,more agile practices and the ability to do business world-wideTechnologyLeadership in cardAuthority in

157、gifts&celebration essentialsExtensive UK&Ireland footprintDigital experience innovationGrowing international presenceCustomer&community focusPassionate colleaguesGovernanceFinancial StatementsStrategic Report21Three years into cardfactorys transformation journey,we are seeing the positive impact of

158、the changes that havebeen made across the business.”Darcy Willson-RymerChief Executive OfficerWe have a clear strategic direction,detailed plans and a disciplined approach for delivery.This is built on the cultural and behavioural progress we made over the last two years,that removed barriers to cha

159、nge and created the environment to drive forward our transformation.We have a strong leadership team with relevant experience and capability in place to deliver on the building blocks of our growth.Card Factory plcAnnual Report and Accounts 202422Value&choiceSTRATEGY IN ACTION Continued investment i

160、n customer insight isdriving the cardfactory range development and product innovation across our cards,gifts and celebration essentials categories.By understanding our customers better than we have ever done before,we are achieving sales growth across all our existing and newcategories.Central to ou

161、r card strategy is maintaining our value-for-money proposition,which sits at the heart of our brand purpose.As we continued to respond to changing customer needs through ongoing range enhancements we have increased our average selling price from 99p to 1.11 which has been achieved through a new high

162、er price point balanced with a 15p price point(for limited periods).This has allowed us to retain our value proposition with greeting cards.We are also now delivering year-round relevant customer promotions.However,where customers place greater value on the celebration,we have increased prices and t

163、his approach has proved successful.By using customer research,we are adapting our greeting cards designs to respond to consumer trends.Our range is continually evolving to include a wider breadth of celebratory captions with examples including helping people celebrate a pets birthday,supporting a wi

164、der breadth of religious festivals and broader diversity and inclusion such as cards for Pride.For both cards as well as gifts and celebration essentials,we have invested in simplifying the in-store experience.Customers have responded positively to the work we have completed to improve the ease of s

165、hopping cards in fixtures,installing better store navigation,andimproving our visualmerchandising.We are successfully delivering on our strategy to become an authority in the gifts and celebration essentials markets.This is a considerable opportunity for cardfactory with an identified addressable UK

166、 market of c.12 billion.Over half of our sales are now from gifts and celebration essentials,with a range that offers both value for money own label ranges as well as well recognised footfall driving third party brands.It also capitalises on the 70%of UK customers looking for gifts to accompany thei

167、r card purchase.Retaining our UK leadership position in cards while growing our gifts and celebration essentials categories.”GovernanceFinancial StatementsStrategic Report23Adam DuryChief Commercial OfficerSpace realignment contributed to improved salesRead more about Value and Choice onlineQ:What i

168、s cardfactorys approach to pricing?A It is essential that cardfactory retains its value-for-money credentials while staying true to our quality promise.Customers can still buy cards at just 29p and we have recently introduced cards for as little as 15p or 10 for 1,while continuing to deliver year-ro

169、und relevant promotions.At the same time,we have continued to develop our range,broadening our customer appeal while offering cards at a range of price points as we know some customers place a higher value on quality and choice.Q:How will cardfactory drive future growth across all three categories o

170、f cards,gifts and celebration essentials?A At the heart of our growth strategy is our commitment to putting the needs of our customer first.Through our investment in customer insight,we are innovating our range to help customers celebrate an ever-increasing breadth of celebration and life occasions.

171、Q:What is the opportunity for gifts and celebration essentials?A This is a significant growth opportunity for cardfactory.We are expanding into new categories,while maintaining a balance between own brand products and footfall driving third party brands.The changes to store layouts have been instrum

172、ental,enabling a greater range of products that are easy for customers to find.Q:How is cardfactory maintaining its leadership in cards?A We are taking a blended strategy that optimises customer choice with an easy to curate range of cards,intelligently stretching our average selling price.This ensu

173、res there is newness across the range to broaden customer appeal,and simplifying our in-store experience.Between May and December 2023,we delivered the first most significant phase of our store evolution programme,completing space realignment across 729 stores in the UK&Ireland.This is a capex light

174、 initiative,expected to pay back within a year.The programme involved reducing average card space within the store by 7%.As the average store had more space allocated to cards then gifts,reducing the card space made more space available for our gifts and celebration essentials ranges which were then

175、 able to increase by 16%.The work was completed in time for the key Christmas trading season contributing to our highest ever Christmas sales.The programme supported the growth of both cards and gifts sales with strong growth in key expanded categories such as gifting(+40%),soft toys(+32%),and stati

176、onery(+18%).Another successful part of the store evolution programme was a greater investment to refit a smaller number of stores that builds upon a successful trial carried out in 2022.The refits involved an enhanced look and feel,easier navigation through the store and other design improvements,in

177、cluding increased store flexibility and operational efficiencies.The programme successfully delivered above the target 10%sales uplift while remaining within our target payback period of approximately three years.Over the peak Christmas period,the three trial stores saw sales growth of 30%compared t

178、o other stores.As a result,all future new stores and refits will now adopt to this updated store format.The store evolution programme has helped transform the customer experience in store whiledriving sales growth.CASE STUDY&ACard Factory plcAnnual Report and Accounts 202424InitiativeObjectiveProgre

179、ssResultsNext stepsLeadership in cardRetaining position as the UKs leading provider of cards.Maintained value for money proposition with cards still starting from just 29p.Stretched the average selling price from 99p to 1.11.Continued to deliver year-round relevant customerpromotions including trial

180、ling 15p or 10for1promotion.Developed the range to respond to consumer trends(including diversity,sustainability and a wider breadth of celebratory captions)while optimising customer choice with easy-to-shop curated cardranges.Simplified the in-store experience.Continued positive performance in ever

181、yday and seasonal card ranges,with+5.4%LFL growth.Refined card range in response to changing customer demand.Grow card market authority through continued range development and curation,including tailored ranges by regions and demographics,to further improve customer choice and value-for-money offer.

182、Authority in gifts and celebration essentialsGrow market share within c.12billion gifts and celebration essentials market.Over half of our sales are now from gifts and celebration essentials.Space realignment in 729 stores provided 16%additional space for gifts and celebration essentials,while not i

183、mpacting the ability to grow card sales.Strong growth in our gifts and celebration essentials ranges of+9.9%LFL,including double-digit growth in categories such as candles and soft toys.Increased space in time for Christmas trading season leading to gifts+25%LFL&confectionery+77%LFL.New Disney and l

184、icensed ranges resonated with customers.As we continue to focus on growing UK market share of c.12 billion gifts and celebration essentials market,we will expand key categories including baby gifting and stationery,alongside further space optimisation for growth ranges such as pet gifting.Value&choi

185、ceSTRATEGY IN ACTION CONTINUEDGovernanceFinancial StatementsStrategic Report25Providing cardfactory customers with an exceptional,seamless shopping experience in the UK and internationally.”ConvenienceSignificant progress was made across all the initiatives that deliver exceptional convenience for o

186、ur customers in the UK and internationally.Building on our market-leading physical footprint in the UK,we are creating a seamless shopping experience for our customers anywhere and at any time theychoose.The transformation of cardfactory into an omnichannel business of greeting cards,gifts and celeb

187、ration essentials began in FY24 with the successful nationwide rollout of our Click&Collect service,the first of our omnichannel propositions.Customers have responded positively with in-store collection representing 7.8%of all online orders in December 2023 and 50%of these Click&Collect transactions

188、 from new customers to cardfactory.co.uk.Recognising that we have an opportunity to improve our online proposition,we are focusing on creating a competitive experience that meets and exceeds customer expectations.In FY24 we completed the replatforming project for our two sites,cardfactory.co.uk and

189、gettingpersonal.co.uk,with both websites now on a common technology base so we can leverage the advantages of using consistent systems,tools and processes.Having invested in new talent and by bringing on board a new technology partner,we are now expanding the online range,especially for gifting,and

190、delivering improvement to the customer experience.Our partnership programme in the UK continued to expand with the rollout across all 223 Matalan stores.Internationally we entered the Middle East market through a franchise partnership with Liwa.The first four stores have already opened,with up to 36

191、 stores planned over the next five years.The acquisition of SA Greetings has also provided a leading presence in the South Africa market which includes 23 company-owned Cardies stores,anonline store,and four franchise-operated stores,as well as 6,500 partnership distribution points operated by its w

192、holesalepartners.Our UK store estate remains our greatest asset with successful,profitable stores on high streets,retail parks and other locations throughout the UK&Ireland.As of 31 January 2024 we had 1,058 stores across the UK&Ireland,of which 43 are new stores or fully refitted during the year,wi

193、th a net increase of 26 stores year-on-year.Over the course of the five year plan,we will have added 90 additional new stores between FY23 and FY27.Our agile management of the store estate ensures we are responding to changing footfall trends on high streets.Finally,in FY24 we embarked upon our stor

194、e evolution programme making significant in-store improvements through a space realignment programme across 729 stores to make shopping for our cards and gifting range easier(see page 23 for more details).Card Factory plcAnnual Report and Accounts 202426Read more about Convenience onlineSTRATEGY IN

195、ACTION CONTINUEDSyed KazmiExecutive Director for Business DevelopmentIn April 2023,we signed a franchise partnership with Liwa in the Middle East.The first four stores are already open in Dubai,Abu Dhabi and Al Ain with up to 36 stores to be opened over the next five years.Liwa is the ideal partner

196、for cardfactory in the Middle East.As a franchisee,Liwa focuses on specialist retail brands across both value and premium.They have the franchise rights for a portfolio of international brands,with a strong presence across the Middle East region.Their business model is set up to work collaboratively

197、 with their partner brands,with Liwa managing the initial brand engagement into the Middle East market.To support Liwa we are leveraging our in-house design studio to support their marketing calendar with Eid and Ramadan cards and gifts.At the same time,were providing third party products as per cus

198、tomer demand.As we scale further well be looking to bring more of the design and sourcing in-house.Our offer and approach are tailored to the needs of each market.In the Middle East,as well as in several other international markets,there is a greater opportunity for gifts and celebration essentials

199、due to the strong gifting culture.On average 90%of customers buy a gift when they purchase a card,whereas in the USA,its only around 45%.Additionally,within the Middle East the average selling price of cards is around 4.20,compared to the cardfactory figure of just 1.11 in the UK1.This gives us the

200、chance to disrupt the market with our value and quality offering.1.Globaldata July 2022.In every way possible the stores look,feel and operate in exactly the same way as our newer cardfactory stores in the UK&Ireland.The stores were built with an updated store design concept based on the principles

201、tested in the UK and elevated to the mall specifications in the market.Response from customers in the Middle East has been positive with customer footfall conversion averaging 30%across the first stores.As expected,our gifts and celebration ranges have performed well as per the strong gifting cultur

202、e in market,with stationery,soft toys,balloons and gift bags contributing to almost 50%of total sales.The Middle East is the ideal market for expanding our international franchise footprint.Q:What is cardfactorys partnership ambition?A Expanding our retail partnerships are a key element of our futur

203、e growth and for FY27 our annualised target for partnerships is to grow revenue to 80 million,mostly from international opportunities.The recent partnership agreements we have signed demonstrates the progress we are making.Q:What are your next priorities?A Our focus is to work with low to mid level

204、complexity model partners,such as with Liwa in the Middle East.This will allow us to build the right infrastructure needed to support accelerated growthinternationally.Q:What is the franchisemodel?A We have two partnership models:franchise,where the partner will operate everything using our brand an

205、d offer;and wholesale,where well have our products in store either cardfactory branded,such as in Matalan,or white labelled,such as in Aldi.This is based on a partners specific requirements.Like franchise,this could also include a cardfactory branded shop ina shop.Q:What are the target markets?A We

206、have identified seven international target markets.These markets were identified from GlobalData market research which sized the cards and gifting opportunities within eachmarket.CASE STUDYUp to 36 Middle East stores in 5 years(UAE,Qatar,Kuwait,Saudi Arabia,Bahrain,Oman)&AGovernanceFinancial Stateme

207、ntsStrategic Report27InitiativeObjectiveProgressResultsNext stepsClick&CollectTo offer customers more convenience by giving them more choice in how they shop with us.National rollout completed April 2023.Customers choosing to collect in store,increasing from launch,to represent 7.8%of orders in Dece

208、mber 2023.Average order value(AOV)5/40%higher than average online AOV.10%of the orders resulted in an additional store sale.Improved order to collection times from 3-5 days to1-2 days.Working towards a pick-from-store solution that will enable same daycollection.Digitally engage customers in-storeTo

209、 connect our online and retail channels to give customers a consistent and seamless experience across alltouchpoints.Initial trials to engage with customers in-store.Point of Sale(POS)upgrade/replacement programme review and selection completed.Loyalty completed customer research to understand whats

210、 important and defined our strategic ambition.Trial ongoing.POS upgrade/replacement to enable future omnichannel capabilities.Increase store awareness of online by trialling a range of new awarenessinitiatives.Working to identify where loyalty fits within our broad technology roadmap.Range expansion

211、To generate incremental sales by expanding the online range into new categories.Launched additional personalised gifting ranges in FY24 including a range of in-house alcohol gifts and a selection of drop-ship photogifts.16%growth in personalised gifting sales during Christmas.Focus on expansion of p

212、ersonalised card and gift ranges.Focus on expanding celebration essentials range,including premium personalised balloons,fancy dress and personalised party accessories.Online&App experienceTo make cardfactory.co.uk and the cardfactory app(App)the easiest place to create uniquecelebrations.Significan

213、tly improved and enhanced the website user and delivery experience.Launched attached gifting which recommends relevant gifts when a customer adds a card tobasket.Launched App-only promotions to allow us toincentivise customers to download the App.Introduced tiered delivery pricing for multi-card ord

214、ers to improve gross margin position.5%increase in personalised card and gift basket mix.AOV+11%YoY.19%growth in App sales YoY.Findability improvements.Date picker functionality for flowers and balloons.Online event reminder journey improvements.Product personalisation journeyimprovements.Convenienc

215、eDigital experience&innovationCard Factory plcAnnual Report and Accounts 202428Convenience continuedExtensive UK&Ireland footprintGrowing international presenceInitiativeObjectiveProgressResultsNext stepsStore evolution programmeIn-store improvements to make shopping our gifting range easier,improve

216、 store navigation and overall appearance.Space realignment initiative rolled out across 729 stores.Successfully trialled new store format with enhanced look and feel,easier navigation andother design improvements.Card space reduced by 7%,gifting and celebration essentials space increased by16%.Stron

217、g growth seen from key expanded categories:gifting(+40%),soft toys(+32%),and stationery(+18%).Successfully maintained card sales from reduced space,improving density by 9%.All new stores and refits in FY25 toadhere to new store format.Relocation strategyContinually adapt to changing consumer footfal

218、l trends and ensure exceptionally few loss-making stores.Continue with our core principle of lower cost,flexible leases with a target three-to-five-year break clause.Less than 1%of the retail estate is loss making providing the business with an exceptionally strong store portfolio.Continue with relo

219、cation programme.Central London storesTest central London store format as underpenetrated market.Test and learn optimisation of three trial stores.Double digit LFL growth vs.FY23.Improved trading margin.London only ranges proving popular.One new London store confirmed in FY25(Cheapside opened March

220、2024).Further openings under review.Republic of Ireland storesExpand Republic of Ireland store portfolio as underpenetrated market.Six new stores opened in the Republic of Ireland in FY24.All stores achieving profitability targets.Continue with plan for 40 Republic ofIreland stores by FY27.Initiativ

221、eObjectiveProgressResultsNext stepsUK&Ireland partnershipsSecure UK&Ireland wholesale partners that extend our UK&Ireland distribution point reach.Full rollout across Matalans entire UK estate of223stores in FY24.Profitable contribution from existing and new partnerships.Identify additional partners

222、 in the UK&Ireland and progress preliminary discussions with current prospects.International partnershipsSecure franchise and wholesale partners across our seven international markets of interest.Signed franchise partnership agreement with Liwa in the Middle East;acquired SA Greetings inSouthAfrica.

223、Profitable contribution from existing and new partnerships.Four stores already opened in the Middle East.SA Greetings successfully integrated into cardfactory.Identify additional partners in our seven international markets ofinterest.Review of other potential international markets.STRATEGY IN ACTION

224、 CONTINUEDGovernanceFinancial StatementsStrategic Report29Delivering an exceptional experience for customers and a values-led culture of accountability and empowerment.”ExperienceThe transformation of cardfactory into a customer-centric business is unlocking our growth opportunity.Customer data is n

225、ow at the heart of our decision-making and touches every part of the business.The outcome is a continually improving range which is surprising and delighting customers and therefore driving sales.Customer data has driven the thinking behind the improved store layout and the experience that we are ro

226、lling out across our estate in different ways.At the same time,it is underpinning our omnichannel strategy with our first omnichannel service rollout,Click&Collect,demonstrating the positive impact that thiswill bring.One of the most significant developments in FY24 was the rollout of our The cardfa

227、ctory Way customer experience training programme across all our stores.Itis designed to transform the way colleagues engage customers in store,making them feel welcomed,wowed and won over.As well as a customer-centric transformation,cardfactory is also on a cultural journey involving rapid and rewar

228、ding change that is benefiting colleagues across the business and providing the core foundation for delivering on our growth strategy.We have had a strong focus on building our leadership team capability.This has included new talent,ensuring we have the right people with the right capabilities and e

229、xperience to drive forward our growth agenda.In addition,we have been investing in the time and the training required for us to have the calibre of leadership we need at all levels of thebusiness.Our pay and benefits offer is being improved to ensure we retain and attract new talent while ensuring a

230、ll colleagues are rewarded fairly,inclusively and competitively.We have made a commitment to continue investment into pay and benefits in order to reach our aspiration of being a market medianemployer.The success of this cultural change can be seen through the two star Best Companies To Work For rat

231、ing we achieved in 2023,with cardfactory being ranked the fifth Best Big Company To Work For in the UK.See more about our colleague engagement on pages 52 and 53.Read more about Experience onlineCard Factory plcAnnual Report and Accounts 202430Steve LilleyExecutive Director Retail Operations&AQ:How

232、is cardfactory improving the customer experience in store?A Through The cardfactory Way we are creating a step change in the approach store colleagues take to engaging customers.More time is now spent on the shop floor engaging with customers and ensuring they are receiving the direct help they need

233、 to find the celebratory products they areafter.Q:How are you measuring success?A As well as a new customer feedback forum,wehave introduced a mystery shopper programme across our stores,which is driving positive change.Q:How are you supporting colleaguetraining?A The implementation of our new Enter

234、prise Resource Planning(ERP)system is helping to free up store colleague time while also improving the customer experience by ensuring the right stock is always available in store.It is also enabling our new omnichannel propositions,which further enhance the customerexperience.Q:What is coming next?

235、A All colleagues,especially those in store,recognise that to be successful we need to deliver on our purpose of making sharing in and celebrating lifes moments special and accessible for everyone.That means engaging our customers to understand the life moment they want to celebrate and ensuring that

236、 we help them source the products they need to make that celebration as special aspossible.The first phase of The cardfactory Way training programme was rolled out in 2023,helping store colleagues ensure that customers are welcomed,wowed and wonover:To be Welcomed:When they come into store or whatev

237、er channel they use,feeling comfortable,reassured and at ease.To feel Wowed:To have our customers feeling inspired and delighted;where expectations are exceeded and memorable moments are created.And to be Won-over:For our customers expectations to be exceeded,leaving them positive and upbeat,feeling

238、 valued and appreciated,and happy to have chosen cardfactory to help create their celebration.This first phase of the programme has delivered positive customer engagement results.In Q3,we had our mystery shopper programme with scores improving by+5ppt,followed by+3ppt in Q4,versus the start of 2023.

239、One example of the impact the training can have is from the experience of Molly Rourke,store manager of our Manchester Arkwright store.The training for Molly and her team helped them put more focus on customer needs and how the team can improve both average units per basket and average basket value,

240、as well as improve mystery shopper results.The team spends more time on the shop floor,engaging new systems to help colleagues work smartly onstockreplenishment.The cardfactory Way training programme is helping transform the customer experience in store.CASE STUDYSTRATEGY IN ACTION CONTINUEDGovernan

241、ceFinancial StatementsStrategic Report31InitiativeObjectiveProgressResultsNext stepsPay&benefitsContinue to focus on the right pay and benefits to attract and retain talent and an aspiration to be at market.Increased colleague discount from 15%to 25%.Continued with pay philosophy of being at market

242、by applying our pay review considering individual circumstance versus midpoint data whilst also considering ongoing inflation and cost-of-living.Our survey results reflecting pay and benefits which we call fair deal showed the most significant increase in score up 10%which suggests the work we are d

243、oing is impacting our colleaguespositively.Introducing a trial of volunteering days across the business.Build out year four of the roadmap with a likely focus onretirementsavings.LeadershipOur emphasis on leadership development continues to support on delivering our strategy.Brought in specific tale

244、nt to support on delivering the strategy in several parts of the business including the IT and Digital teams.Strengthened our leadership teams which supports decision making,widens communication channels and promotes development.Clearly defined talent and succession approach which enables planning f

245、or success as well as mitigating risk by identifying clear successors andclear gaps.High levels of engagement with core leadership development programmes;Leading Self,and Leading Others.Launch of women in leadership offering.Success in coaching programmes forsenior managers.Launch of Womens Network

246、and more activity specifically supporting women in leadership.Identification of high potential colleagues and targeted programmes to support talent pipelinedevelopment.Coaching skills development for all Regional Managers in our Retail fieldteam.Colleague experienceTo elevate the colleague experienc

247、e,weaving our purpose through everything that we do.Using data and insight from our survey and our forums we can hear our colleague voice and drive initiatives based on feedback.Improved our induction and onboarding processes to improve the experience and bring through the spirit of celebration on a

248、ccepting a new role and joining a new company.Highlighted recognition against our values via our internal Colleague Moment Awards.Automation and visual uplift of job offer and onboarding,improving theexperience.Enhanced induction for our support centre colleagues,refreshing our material and highligh

249、ting our strategy and brand.Enhanced induction for our 6,000 seasonal colleagues ensuring a smooth and engaging introduction to the business.To build a plan for giving something back that reflects our colleagues and our communities.To continue to elevate the colleague experience at key moments in th

250、eir employment journey such as promotions,celebrating learning or personal family events ensuring they have the right support and infrastructure.Passionate colleaguesInitiativeObjectiveProgressResultsNext stepsCustomer experience programmeImprove customer experience in store.Launched The cardfactory

251、 Way customer experience training programme to transform the engagement of customers in store.Q3 Mystery Shopper programme scores improved by+5ppt,followed by+3ppt in Q4,versus the start of 2023.Second phase of programme being launched in FY25.ESGContinue to build upon our environmental social gover

252、nance(ESG)credentials with our aim of being recognised as a socially and environmentally responsiblebusiness.Completion of Scope 1,2 and 3 emissionsassessment.Completed refresh of materiality assessment.Committed to updated five-year ESG strategy androadmap.Targets set for five year Delivering a Sus

253、tainable Future plan.Adopted Net Zero target by 2050.Net Zero goals to be finalised and published in FY25.ExperienceCustomer&community focusCard Factory plcAnnual Report and Accounts 202432sustainabilityOurENVIRONMENTAL,SOCIAL,AND GOVERNANCE(ESG)strategyOur sustainability strategy is underpinned by

254、strong governance to ensure we do the right thing,acting withintegrity and transparency,in line with our values.”GovernanceFinancial StatementsStrategic Report33We believe that operating sustainably is critical to the long-term health of ourbusiness and the world we operate in.FY24 marked a signific

255、ant step forward in advancing our sustainability ambition with the launch of our Delivering a Sustainable Future plan.This plan was informed by an updated materiality assessment completed by a specialist consultancy in June 2023.This provided a refreshed view of cardfactorys most significant environ

256、mental and social impacts and risks and of the themes prioritised by our colleagues,customers,suppliers and other stakeholders.The assessment highlighted that our most material issues are:our Scope 3 supply chain and Scope 1 and 2 production emission levels;supply chain engagement and transparency i

257、n terms of nature impacts and maintenance of high labour standards as we drive growth;continuing to reduce waste across our business and for product end-of-life;and pay,benefits and cost-of-living support forcolleagues.Delivering a Sustainable Future addresses these material topics,outlining an upda

258、ted and expanded sustainability plan for the next five years to the end of 2028,with clear and transparent commitments and goals.The strategy is built around four important pillars for our business,both now and in the future:1.Climate 2.Waste and Circularity 3.Protecting Nature 4.People and EquityWe

259、 maintain a policy whereby each pillar is aligned with the relevant UN Sustainable Development Goals(SDGs)to ensure our strategy is aligned to global imperatives.This is supported by a comprehensive approach to governance to oversee progress and embed sustainability across our business.The goals aga

260、inst each of these pillars reflect both previous and new commitments to reflect materiality and our Net Zero journey and will evolve each year to build in longer-term targets,while maintaining full transparency of reporting against these.Our sustainability strategy is fully aligned with our broader

261、business strategy.The process of embedding sustainability into business planning and Opening Our New Future strategy reviews will be a key priority in FY25 to ensure our commitments are at the forefront of how we work and the decisions we make every day.Sustainability governanceOur sustainability st

262、rategy is underpinned by strong governance to ensure we do the right thing,acting withintegrity and transparency,in line with our values.Our 2023 materiality assessment refresh enabled us to update corporate risks and opportunities and assign appropriate actions within our core operations and strate

263、gy.The refresh also highlighted our most material governance requirements as incorporation of sustainability into core business planning,decision-making and into accountabilities and responsibilities across our organisation.Good governance holds us accountable to delivering on these priorities,with

264、clear sustainability ownership structures at Board and senior management team level.cardfactorys Chair has accountability for sustainability at a Board level,reviewing activity monthly and leading the Board in assessing strategy,progress and risks on a six-monthly basis.At the senior management team

265、 level,cardfactorys Chief Commercial Officer is responsible for leading our sustainability programme delivery across the business.Our sustainability strategy,supporting roadmap and reporting are fully transparent in terms of actions and deliverables.We are developing an operationalisation plan and s

266、upporting dashboard to enable our ChiefCommercial Officer and workstream owners toreview progress against this monthly and the seniormanagement team to review quarterly.At cardfactory,we combine our commitment tovalue with an equal commitment to play our part in protecting the planet and supporting

267、our colleagues and local communities.”Card Factory plcAnnual Report and Accounts 202434Our Delivering a Sustainable Future strategyESG CONTINUEDClimateWaste and CircularityProtecting NaturePeople and EquityGovernanceWe will play our part in tackling the climate crisis,and adapt our business to achie

268、ve Net Zero and remain resilient.Read more on page35We will continue our journey to become a circular business by redesigning products and packaging,using fewer materials,and finding new ways to increase recycling,recovery and re-use of our products.Read more on page 36We will operate in a way that

269、reduces harm to our planet and helps restore our natural environment.Read more onpage 37We will actively champion the wellbeing of everyone within our business,supply chain and communities by creating an environment that allows them tothrive.Read more on pages38-39We will operate with transparency a

270、nd integrity,embedding sustainability in everything we do.Read more on page 33Publish Net Zero goals in FY25.Minimise waste across all operations.Explore further opportunities to protect nature and biodiversity in all of the countries in which we operate.Celebrate difference,ensuring equity of oppor

271、tunity and reward for all colleagues.Do the right thing,ensuring our sustainability commitments are reflected across all operations and decision making.Work with our suppliers to align them to our Net Zero goals and reduce emissions.Increase recycling and recyclability across operations,products and

272、 packaging.Reduce our use of scarce natural resources(such as helium and water)across operations and supplychain.Deliver an excellent colleague support programme.Increase transparency of supply chain activity to ensure people and environmental performance align with sustainability commitments.Build

273、resilience to climate change into our operations and supplychain.Redesign our products and packaging to use less materials.Nurture our communities and ensure we deliver meaningfulimpact.Address gifts and celebration product end-of-life,exploring opportunities for re-use or recycling.Make sharing and

274、 celebrating lifes moments accessible for everyone.GovernanceFinancial StatementsStrategic Report35How did we do?Achieved Partially achieved Still to be achievedClimateWe will play our part in tackling the climate crisis,achieving Net Zero to reduce our environmental impact and adapting our business

275、 to respond to the challenges of a changing climate.1.Compared to FY22 baseline.Goals Define and publish science-based Net Zero targets and pathway.All company cars to be electric/hybrid by end of FY24,reducing fleet carbon by 90%1.Complete LED rollout in UK manufacturing by end of FY24.Align top su

276、ppliers to cardfactory Net Zero targets.For additional information on Climate,please see TCFD (Task Force on Climate-Related Financial Disclosures)on pages 40-47FY24 progress highlightsWe completed a Scope 1,2 and 3 GHG emissions inventory for cardfactorys entire operations and supply chain for FY22

277、.Scope 1675 tCO2e(1%of total)Scope 2(market-based):5,172 tCO2e(7%of total)Scope 370,915 tCO2e(92%of total)We have set a Net Zero by 2050 goal,and defined science-based near-term targets to help deliver this:we will reduce absolute Scope 1 and 2 GHG emissions by 54.6%by 2033(from a 2022 base year);an

278、d we will reduce Scope 3 emissions by 61.1%by 2033 on an economic intensity basis(from a 2022 base year).Our Net Zero pathway currently includes the following initiatives,in line with previous goals set:All our company cars are now electric or hybrid.Our LED lighting rollout is complete across our P

279、rintcraft manufacturing facility and stores(excludes stockroom space).100%of our top suppliers have engaged with us on environmental goals.Discussions are underway with our logistics partners to define options for electrification of last-mile delivery vehicles.The technology required for electrifica

280、tion of HGVs is not currently developed;this will continue to be reviewed as new technology becomes available.Stage one of embedding sustainability considerations into business planning has been completed;risks and opportunities associated with each strategic initiative have been identified and work

281、shopped with the leadership team and will be reflected in the next review of Opening Our New Future strategy.Targets for moving additional product manufacturing from the Far East to UK have not yet been defined due to changing sourcing requirements as celebration essentials and gifting ranges expand

282、.Plans for FY25 Complete GHG emissions inventory for FY23 and FY24data.Complete LED rollout across distribution centres and support buildings.Define our renewable energy transition plans,including potential for a corporate power purchase agreement.Engage with top suppliers on Net Zero targets.Review

283、 current risk and impacts of extreme weather across the supply chain to begin the mitigation planning process.Incorporate sustainability considerations into business planning and strategy review process,including sourcing and logistical considerations of international growth and category expansion.R

284、educing emissions across ourbusiness cardfactorys commitment to become a Net Zero business by 2050 is driving change across our operations and supply chain.Alongside switching to LED lighting and electric or hybrid company cars,we are defining plans to move to renewable energy sources and working wi

285、th our major suppliers to understand how their own Net Zero plans align with cardfactorys.Responsibility for this change sits with colleagues across our business,including cardfactorys Head of Construction and Maintenance:As a major retailer,we must tackle climate change.As well as decarbonising our

286、 own operations and looking at how we can take less from nature,we can help motivate change across the companies who supply and transport our products.Playing our part is important to cardfactory colleagues and this is an example of this in action.”SpotlightHow did we do?Achieved Partially achieved

287、Still to be achievedWaste&CircularityWe will continue our journey to become a circular business by redesigning products and packaging,using less materials and finding ways to increase recycling,recovery and re-use of our products.Goals Remove single-use plastic from 90%of own-label products sold1 by

288、 end of FY24.Remove plastic-based glitter from all products by end of FY24.Reduce in-store,point-of-sale poster volume materials by 50%byend of FY241.All new gift wrap sold will be 100%recyclable by end of FY24.All new gift bags and gift boxes to be 100%recyclable by end of FY25.FY24 progress highli

289、ghts We have removed single-use plastic from 90%of our own-label products(excludes foil balloons)andpackaging1.We have eliminated plastic-based glitter from all products,replacing itwith biodegradable or mica-based alternatives.We have reduced our in-store,point-of-sale poster volume materialsby50%1

290、.All our new gift wrap is now 100%recyclable.Paper banding trial underway at Printcraft to test viability of replacing plastic film tertiary packaging oncards.Review underway with suppliers to investigate feasibility of moving all paper-based product and logistics packaging to FSC-certified.We are o

291、n track to label all primary and secondary packaging to show components and recyclability of each component in line with new Extended Producer Responsibility ofPackaginglegislation.Plans for FY25 All new own-label soft toy fillings will be made from 100%recycled materials.Continue to review products

292、 and packaging on an ongoing basis,removing non-essential single-use plastic and ensuring any remaining plastic is recyclable.All our new gift bags and gift boxes will be 100%recyclable.Investigate potential measures and partnerships to address product end of life andfurther reduce waste.Complete Ex

293、tended Producer Responsibility ofPackaging legislation requirement by mid-FY25.Redesigning our products and packaging Over the last three years,cardfactory has made significant progress on our drive to reduce waste.Our first phase of work has focused on elimination of non-essential single use plasti

294、c in our own-label products and packaging,increasing recyclability and engaging with suppliers to reduce waste in products,packaging and logistics.cardfactorys Buying Director oversees much of this activity:Our teams work to tackle waste reduction has already had a significant impact.For example,thi

295、s year,weve removed 109.8 tonnes of plastic from our party products equivalent to 11 million water bottles2 and over the Christmas period we removed a further 4.8tonnes of plastic by replacing cellophane wrap with labels on our festive wrappingpaper.Where removal isnt possible,weve introduced recycl

296、able product and packaging components.Looking ahead,our ultimate goal is to use less raw materials in the first place and so we are actively re-designing products and packaging to help minimise our environmental impacts.”SpotlightCard Factory plcAnnual Report and Accounts 202436ESG CONTINUED1.Compar

297、ed to FY22 baseline.2.500ml water bottles weighing 10g each.How did we do?Achieved Partially achieved Still to be achievedProtecting natureWe will operate in a way that reduces harm to our planet and helps restore our natural environment.Goals All cardfactory paper party products to be FSC-certified

298、 by end of FY25.Woodland Trust partnership to plant more than 12,000 native trees in the UK,mitigating up to 3,200tonnes of CO2 during treeslifetime.FY24 progress highlights More than 60%of cardfactory paper party products are now FSC-certified.Woodland Trust partnership expanded to plant 25,105 nat

299、ive trees in the UK,removing 6,276 tonnes of CO2 from the air over the lifetime of the trees.Plans for FY25 All cardfactory paper party products will be FSC-certified.Conduct review to understand the impact of our supply chain activity on the natural environment,including biodiversity loss,water use

300、 and chemical use and disposal.Restoring nature with the WoodlandTrustTrees and woods are essential in the fight against climate change,absorbing carbon,reducing pollution and flooding and supporting people,wildlife and farming in adapting to the climate and nature crises.However,for the UK to minim

301、ise the pace and level of climate change to reach its carbon Net Zero target by 2050 and adapt to its unavoidable impacts,it needs asignificant increase in native trees and woodland.As a first step in our plans to protect and restore nature,cardfactory is partnering with the Woodland Trust to create

302、 new native woodland through their Woodland Carbon Scheme.Since October 2022,the partnership has supported the planting of 25,105 UK native trees,which have the potential to sequester 6,276 tonnes of CO2 from the atmosphere throughout their lifetime.cardfactorys support has enabled us to create new

303、native woodland and essential green spaces,ensuring that everybody in the UK has equitable access to the benefits of trees where they live.The trees planted will act as important carbon stores,aiding the fight against climate change and assisting natures recovery.Ourpartnership stands as a great exa

304、mple of how a business can actively contribute to environmental conservation efforts.”TheWoodland Trust partnership manager.SpotlightGovernanceFinancial StatementsStrategic Report371.Compared to FY22 baseline.How did we do?Achieved Partially achieved Still to be achievedPeople&equityWe will actively

305、 champion the wellbeing of everyone within our business,our supply chain and our communities by creating an environment that allows them to thrive.Our colleaguesSpotlightCard Factory plcAnnual Report and Accounts 202438ESG CONTINUED1.Compared to FY22 baseline.Goals Continue evolving cardfactory cult

306、ure to embed our purpose,values and sustainability commitments.Expand diversity,equity and inclusion(DE&I)data to ensure our strategy and activity reflects our colleague and customer communities.Continue to support colleagues with our comprehensive wellbeing offer,covering mental,physical and financ

307、ial wellbeing.FY24 progress highlights We completed wellbeing leadership workshops for all our senior leaders to make wellbeing integral to business leadership and operations.90%of colleagues responded to ourannual engagement survey.We were named fifth Best Big Company to Work for in the UK byBest C

308、ompanies.We secured 10%improvement on fairdeal ratings,reflecting colleagues experience of reward,pay andbenefits.We revised our DE&I strategy to drive colleague-owned activity and engagement across all areas of the business using the following framework pillars:Lets Talk About;Lets Learn;Lets Celeb

309、rate;LetsRaise Awareness.We delivered a DE&I focus on disability awareness.We increased mental health awareness across the business and added to our support card range with a range of cards promoting children and young peoples mental health awareness.For more on our colleague initiatives,pleasesee O

310、ur Colleagues on pages 52-53Plans for FY25 Launch count me in campaign to collect colleague diversity data and develop diversity metrics based on insight(continuation of FY24 plans).Review talent strategy to define commitment and approach with alignment to purpose,to include internal mobility.Delive

311、r the next phase of reward and benefit roadmap to ensure equity of reward across our diverse colleague population.Deliver training to secure family friendly employer accreditation.Celebrating our differencesMaking sure that every cardfactory colleague and customer feels welcome,valued and confident

312、to share their perspective is fundamental to delivering on our purpose.Actively embracing people of all different backgrounds,cultures,communities and requirements brings a richness and strength to our team,our culture and our customers experience when they visit our stores orinteract with our marke

313、ting.Our DE&I strategy encompasses how we recruit,welcome and develop colleagues,how we communicate and our range of cards and gifts.Colleagues of different communities and backgrounds are actively involved in developing ranges,making sure these reflect the communities we serve and the life moments

314、they want to celebrate.cardfactorys Editorial Manager is one of these team members:This aspect of my job is something I am very passionate about and proud of.This is about representation making sure that everyone can go into cardfactory and see themselves reflected.For people who go through life fee

315、ling different,this is so important and can make a genuine difference in peoples lives.”Goals Continue to support The Card Factory Foundation.Continue to identify and support charity and community partners that align with our values and business.Continue to support colleagues whoare engaged with loc

316、al causes and charities.FY24 progress highlights We donated 518,078 to Macmillan Cancer Support,taking the total raised since 2006 to 8.3 million.We donated more than 1 million to The Card Factory Foundation,contributing to the Foundations Match Fund,Community Fund and Family Fund.We generated 125,0

317、00 in boxed Christmas card donations for four UK charities and donated 0.10 for every 1.00 raised in the Republic of Ireland toMake a Wish Ireland.Plans for FY25 Launch colleague volunteering programme.Select FY25 charity partner(s)forChristmas boxed cards,aligned topurpose.Continue to support The C

318、ard Factory Foundation and charity partners.17 years of partnership with Macmillan Cancer SupportIn FY24,cardfactory marked 17 years of our fundraising partnership with Macmillan Cancer Support.We have raised 8.3 million in total through colleague and customer donations and matched funding of collea

319、gues efforts by The Card Factory Foundation wherever possible.cardfactorys Head of Retail Operations and Communications has led the partnership since 2007:In the UK,one in two people will be diagnosed with cancer in their lifetime and so we know supporting Macmillan will in turn support many colleag

320、ues and customers.The Macmillan team manages to make everyones experience of their support feel personal and I am honoured to be able to play a part at a time when they are needed more than ever.The partnership is so successful because colleagues across the business get involved,coming up with new w

321、ays to raise funds.Macmillan is part of our culture and we are already looking forward to hitting 9million in fundraising.”Our communitiesSpotlightGovernanceFinancial StatementsStrategic Report39Card Factory plcAnnual Report and Accounts 202440CLIMATE CHANGE AND TCFDThis section details the Groups c

322、limate-related disclosures,in alignment to the Task Force on Climate-Related Financial Disclosures(TCFD)recommendations.The overall format from the FY23 report has been retained with the aim of providing clarity and clearly demonstrating continued progress against the TCFD recommendations.The Group

323、has achieved compliance for all but one of the required disclosures,the exception concerning the Groups strategies and resilience to climate-related scenarios.Full compliance will be achieved within the next 12-24 months.The Group recognises this continues to be a work in progress and,in order to ac

324、hieve compliance across all TCFD recommendations,remains actively engaged in initiatives that will enable it to further improve disclosures in subsequent years.It is anticipated that this will include a deeper understanding and disclosure of the overall materiality of climate-related issues and impr

325、oved links to overall business strategy.The Group completed a materiality assessment refresh in June 2023 to understand potential climate-related risks,opportunities and the impact for cardfactory.The exercise,which included senior management team members,considered the likelihood of risks materiali

326、sing and potential impacts including financial,reputational,operational or regulatory.Business growth has also been considered in terms of potential impact on material risk,including the Groups international growth plans and expansion of celebration essentials and gift ranges.All identified risks ha

327、ve been incorporated into the Groups overall risk register and will form part of business decision-making.The business is in the process of quantifying climate-related impacts,risks and opportunities as part of its Net Zero pathway planning and overall business planning and will report on these once

328、 this work is progressed.Therefore,the climate-related risks,opportunities and impacts detailed within this report are based on a qualitativeanalysis.There has been significant progress made throughout FY24,with successful completion of many of the plans detailed in the FY23 report including the ful

329、l Scope 1,2 and 3 Greenhouse Gas(GHG)assessment and the setting of a science-based Net Zero goal.GovernanceFinancial StatementsStrategic Report41GovernanceDisclose the organisations governance around climate-related risks and opportunities.TCFD recommendationCurrent statusUpdates and plans for FY25D

330、escribe the Boards oversight of climate-related risks and opportunities.TCFD progressClimate-related risks and opportunities have previously been assessed by the Board as part of the general business risk management described on page 65.In FY24 the Group launched the Delivering a Sustainable Future

331、plan;as described in the sustainability strategy on page 34.cardfactorys Chair has accountability for sustainability at a PLC Board level,reviewing activity monthly and leading the Board in assessing strategy,progress and risks on a six-monthly basis.At the senior management team level,cardfactorys

332、Chief Commercial Officer is responsible for leading our sustainability programme delivery across the business.cardfactorys Chair is accountable for the Groups sustainability plan with the Chief Commercial Officer responsible for leading the programme across the business.The senior management team re

333、views this on a quarterly basis.Continued six-monthly reviews of the Delivering aSustainable Future plan by the Board.Quarterly reviews of progress,reporting and programme delivery by the cardfactory senior management team.Establish management processes for capturing data and incorporating SA Greetings climate impact future plans into the overall Group strategy(along with any other future potentia