20th Sep 2022 09:01
(Alliance News) - Shares dropped in Moonpig Group PLC on Tuesday, despite reiterating its guidance for its current financial year, as trading to date remains in line with expectations.
Shares in the London-based online greeting card and gifting company were 11% lower at 178.60 pence on Tuesday morning, the second worst performer in the FTSE 250.
For the year ending April 30, 2023 to date, average order values have increased year-on-year, while margin trends remain resilient in the absence of pressure from input cost inflation.
In June, Moonpig said it expects annual revenue to reach around GBP350 million, up from GBP304.3 million the year before.
Looking ahead, Moonpig said it expects its business to return to pre-Covid seasonality, supported by a concentration of resources around peak trading periods and software engineers being brought in to further develop the Moonpig technology platform, following the full migration of the Greetz brand.
Meanwhile 58% to 60% of total revenue for the year is anticipated to arise from the second half, while the adjusted earnings before interest, tax, depreciation and amortisation margin rate, is also set to be more second-half weighted.
"Moonpig Group's trading remains resilient and we are confident that full year revenue will be approximately double the level achieved three years ago. The group continues to offer a powerful and unique combination of leading market positions, strong customer retention, high profit margins and robust cash generation," said Chief Executive Officer Nickyl Raithatha.
"Against the current macroeconomic backdrop, our continued performance reflects the strength of our data-led business model and the long term opportunities in our markets. Following the acquisition of the Experiences Division and the successful migration of Greetz onto our central technology platform, we look to the future with confidence as we execute on our strategy to capture the secular shift in our markets from offline to online," Raithatha added.
By Dayo Laniyan; [email protected]
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