Moonpig trading in line; agrees new revolving credit facility

14th Mar 2024 07:56

(Sharecast News) - Greeting cards and gift retailer Moonpig said on Thursday that trading in the current financial year ending 30 April has remained in line with expectations across all of its brands, as it announced a new revolving credit facility.

Growth has been underpinned by a strong performance at Moonpig, which saw volume growth across the Christmas, Valentine's Day and Mother's Day peak trading seasons.

"Accordingly, whilst the external environment remains challenging, expectations for full year revenue and adjusted EBITDA remain unchanged," it said.

Moonpig said it continues to make good progress with the deployment of customer-facing technology features that it expects to drive revenue growth.

Nine months following its launch, the Moonpig Plus subscription membership service has more than one quarter of a million subscribers and Greetz Plus has been "equally well received" by its Dutch customers since it was introduced in January 2024.

Chief executive officer Nickyl Raithatha said: "We are delighted that revenue remains in consistent growth at the Moonpig brand. Our continued focus on technology investment means that Moonpig Group is now consistently delivering year-on-year growth in revenue and profit.

"This is underpinned by our resilient, profitable and cash generative business model, leveraging our unique use of data to drive customer loyalty. We continue to innovate to attract and retain our loyal customers and remain well positioned to benefit from the long-term structural market shift to online."

The company also said it has agreed a new four-year, committed, multi-currency revolving credit facility of £180m with a syndicate of banks. The previous £175m term loan and £80m revolving credit facilities have been fully repaid and cancelled and the new RCF is fully available "for general corporate purposes", it said.