Further losses are on the cards at Clintons

RETAILER Clinton Cards racked up further losses in the first six months of its financial year and yesterday warned there is worse to come.

The greetings card and gift chain, which owns 328 Clintons stores and 139 Birthdays outlets, recorded a pre-tax loss of £3.7 million in the 26 weeks to 29 January, compared to a profit of £11.7m in the previous year, after like-for-like sales dropped 1.1 per cent.

And the pressure the company has been under is set to continue as chief executive Darcy Willson-Rymer warned the second half of the year would be below expectations.

Willson-Rymer, who joined the company from coffee chain Starbucks in October, added he is on course to unveil his strategic review of the business next month.

The group has been on the retail critical list after plunging to a £10.7m annual loss amid falling sales.

But it was able to secure £55m in borrowing facilities in October, which will allow it to complete a restructuring. The company has already closed 17 loss-making Clintons stores and 17 loss-making Birthdays outlets, as well as cutting headcount at its support centre by 15 per cent.

Willson-Rymer said his forthcoming review “is the main platform for change”.

The group said that, for the first eight weeks of the current year, after adjusting for the timing of Mother’s Day, the underlying trend was down by 4 per cent, compared to last year.

James Dilks-Hopper, analyst at Numis, forecast bigger losses for the full year following the update, increasing his estimate from £8.8m to £18.6m. Shares closed down 0.25p at 10p.