LONDON (ShareCast) - (Sharecast News) - Moonpig reported a rise in annual earnings on Thursday, and announced the departure of long-serving chief executive Nickyl Raithatha, as the online greetings card and gifting group posted strong growth in adjusted earnings and free cash flow.
Revenue for the year ended 30 April rose 2.6% to £350.1m, driven by an 8.6% increase in sales from the core Moonpig brand.

Adjusted pre-tax profit rose 16% to £67.5m, while adjusted earnings per share grew 18.1% to 15p.

Free cash flow rose 8.4% to £66.1m.

The FTSE 250 company declared a dividend of 3p per share, compared with none the prior year, and completed a £25m share buyback, with plans to repurchase up to £60m during the current financial year.

Reported pre-tax profit slumped 93.6% to £3m due to a £56.7m non-cash goodwill impairment at its experiences division, which continues to face a challenging market.

"We are pleased to report a year of strong adjusted earnings per share growth and high free cash flow, driven by the ongoing strength of the Moonpig brand," said chief executive Nickyl Raithatha.

"Our performance reflects the power of our business model and the benefits of our sustained investment in technology, data and AI to help our customers express themselves in ever more meaningful and personalised ways.

"We have maintained strong trading momentum since our year-end, with Moonpig delivering its biggest ever Father's Day, exceeding sales at the peak of lockdown in 2020."

The company's Moonpig Plus and Greetz Plus subscription services grew to 920,000 members from 540,000 a year earlier, helping lift order frequency by over 20% among subscribers.

Meanwhile, Moonpig's international revenue in the US, Australia and Ireland jumped 36.1%.

Looking ahead, Moonpig said it expected adjusted EBITDA to grow at a mid-single-digit rate in the current year, with adjusted earnings per share rising between 8% and 12%, supported by strong free cash flow.

Alongside the results, Moonpig announced that Raithatha would step down as CEO after seven years in the role.

He would remain in post during a 12-month notice period while the board searches for a successor.

"I would like to thank Nickyl for his service and contribution as CEO, including leading the group to a successful IPO on the London Stock Exchange in 2021," commented chair Kate Swann.

"Under his leadership, the group has reinforced its position as the category-defining online platform for greeting cards and gifting."

Raithatha added, "It has been a privilege to work alongside such a talented group of people.

"Together, we have grown the business, listed on the London Stock Exchange, and expanded into new markets.

"As today's full-year results show, the business is in excellent shape, with strong momentum, an experienced senior leadership team, and significant growth potential."

At 0934 BST, shares in Moonpig Group were down 9.84% at 219.54p.

Reporting by Josh White for Sharecast.com.

Email this article to a friend

or share it with one of these popular networks:

• DIGG
• FACEBOOK
• STUMBLEUPON
• MIXX
• YAHOO BUZZ
• DELICIOUS
• REDDIT
• NEWSVINE