Moonpig Group PLC (LSE:MOON), the online cards and gifting business, saw its shares jump 18% to 242.2p after reporting stronger revenue, higher profits, robust cash generation and a 25% increase in its dividend.
Revenue for the year to 30 April 2026 rose 6.5% to £373 million, while adjusted earnings per share increased 19.5% to 18p.
Reported profit before tax soared to £68.9 million, up from £3 million the previous year, when results were heavily impacted by £64.6 million in adjusting items.
The board proposed a 25% rise in the total dividend to 3.75p per share.
Growth was driven by the core Moonpig brand, where revenue climbed 8.6%, while its Dutch arm Greetz posted constant currency growth of 1.5%.
Active customers across both brands increased to 12.3 million, up from 12 million a year earlier, while average order value rose 5.7%, supported by customers trading up to higher-value gifts, including new ranges from Next and Boots, as well as larger card formats and increased use of tracked UK delivery.
Adjusted EBITDA rose 8.1% to £104.6 million, with margins slightly improving to 28%, while free cash flow increased 11.2% to £73.5 million.
The company also completed £60 million of share buybacks during the year and plans to repurchase up to a further £65 million in the current financial year.
Chief executive Catherine Faiers, who took over in March, said the group’s brands, customer data and operational strength provide a strong platform for long-term growth and shareholder returns.
Panmure Liberum reiterated its “buy” rating and 300p price target, arguing the shares remain undervalued given strong cash generation and a free cash flow yield of around 9%.
Trading since the start of the new financial year has been in line with expectations, with forecasts for the year to April 2027 unchanged.
Leave a Reply