28th Sep 2021 08:59
(Alliance News) - Moonpig Group PLC on Tuesday upgraded its outlook for its current financial year, as trading so far has been "strong".
The FTSE 250-listed stock was 1.6% higher in morning trading in London at 365.24 pence each.
Moonpig will be holding an annual general meeting Tuesday. Ahead of it, the online greeting card and gifting platform said frequency remains elevated following a limited change in consumer mobility through the summer, despite the lifting of lockdown restrictions.
The company raised its revenue guidance for the financial year to the end of April 2022, which it now expects to be between GBP270 million and GBP285 million. Moonpig has previously expected its full-year revenue to come in between GBP250 million and GBP260 million.
Revenue will still be down from financial 2021, when Moonpig reported takings of GBP368.2 million. However, it will be well above financial 2020 revenue of GBP173.1 million.
Looking further ahead, Moonpig said its view on underlying growth trends, and its medium-term growth and margin targets, remains unchanged.
The London-based company noted that it has invested at a higher rate in the long-term growth drivers of its business, including promotional activity to drive strategic levers such as app downloads.
"Despite the lifting of restrictions and the extra competition from high street card retailers, business was still benefiting from an ongoing trend to buy cards and gifts online," commented Susannah Streeter, senior investment and markets analyst at Hargreaves Lansdown.
She noted Moonpig's raised revenue guidance won't necessarily translate into more profit. "Hanging onto newly acquired customers is a costly business, and the company has budgeted for a big marketing drive, including promotions to drive app downloads."
By Evelina Grecenko; [email protected]
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