Good morning, it’s Paul here with the SCVR for Friday. What a busy week it’s been!

Spectacles steaming up when you wear a face mask? It's been the bane of my life lately. I've found a solution which completely eliminates fogging up with glasses, explained in this short video. If you find this helpful, then feel free to share it on social media, because this does work brilliantly!

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Timing - Today's report is now finished.

Agenda -

Card Factory (LON:CARD) - Trading statement - covenant breach imminent, so risky

Xaar (LON:XAR) - Trading update FY 12/2020

Finsbury Food (LON:FIF) - H1 trading update

Clipper Logistics (LON:CLG) - Founder/Chairman sells £62m-worth of shares

N Brown (LON:BWNG) - Q3 (18 weeks to 2 Jan 2021) Trading update

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Card Factory (LON:CARD)

37.3p (down 7% yesterday) - mkt cap £127m

Trading Statement

Card Factory, the UK's leading specialist retailer of greeting cards, dressings and gifts, announces its trading update for the eleven months ended 31 December 2020.

Obviously it's been hit hard by covid/lockdown enforced store closures, no surprise there. Revenues down 34% in total, of which store sales down 38.1%. This suggests that online growth, whilst good in % terms, is nowhere near enough to compensate for store closures.

Although stores did trade better when they were allowed to open;

Recovery following first national lockdown exceeded board's expectations, building to sustained positive LFL from early October 2020 with the shop estate fully open

CARD was highly indebted before the covid crisis, so I am concerned about its solvency & bank position, which could end up forcing it to do a big placing.

It reckons current bank facilities are enough;

Assuming the current national lockdown for non-essential retailers does not extend beyond 30 April 2021, existing bank facilities of £200m would be sufficient to meet the current requirements…

Despite the unprecedented nature of this year, our aggressive but considered management of costs and cash has resulted in a material reduction in our utilisation of the debt facility, resulting in net debt being reduced to £90m as at 31 December 2020, compared to the net debt of £119m as at 31 December 2019.

We would not expect this facility to be fully…

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