27th Jul 2021 09:56
(Alliance News) - Moonpig Group PLC on Tuesday posted a sharp revenue hike in its maiden set of annual results since its float, though the greetings card retailer warned the new financial year will be less lucrative.
It also outlined plans to "prioritise additional investments in marketing", as the FTSE 250 stock bids to hang on to market share it capture during the pandemic year.
Moonpig shares were 5.9% lower at 399.40 pence each in London on Tuesday morning, valuing the company at GBP1.37 billion.
It was a "transformational year", said the company, which floated in February. Moonpig priced its initial public offering at 350 pence per share, issuing 5.7 million new shares, raising GBP20 million, with existing investors selling 134.6 million shares. It meant the total offer size was GBP491.2 million.
It had a GBP1.2 billion market value on admission.
In the 12 months to April 30, revenue more than doubled to GBP368.2 million from GBP173.1 million. Pretax profit inched up 1.1% to GBP32.9 million from GBP31.8 million.
The company said its order numbers more than doubled to 50.9 million from 24.3 million. Average value inched up to GBP7.2 per order from GBP7.1.
Moonpig said the new year has kicked off "moderately ahead of expectations", with the company noting a slower lifting of virus curbs in the UK and Netherlands, where the company operates the Greetz brand.
"As restrictions have eased, we have seen customer purchase frequency start to normalise from elevated levels, and we expect this to continue until frequency is approximately 5% ahead of pre-Covid-19 levels, in line with previous expectation," the company added.
"In line with our approach during the second half of FY21, we will continue to prioritise additional investments in marketing and market share capture over short-term maximisation of profit margin rate."
For the current year, it expects revenue between GBP250 million and GBP260 million, so as much as a 32% decline from financial 2021. Moonpig noted this would represent up 50% growth from financial 2020, however.
By Eric Cunha; [email protected]
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