REG - Moonpig Group plc - Final Results
26/06/2025 07:00
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RNS Number : 4487O Moonpig Group plc 26 June 2025
26 June 2025
Moonpig Group plc ("Moonpig Group" or the "Group")
RESULTS ANNOUNCEMENT FOR THE YEAR ENDED 30 APRIL 2025
Strong Adjusted EPS growth and high Free Cash Flow driven by the ongoing power
of the Moonpig brand
Summary financial results
Year ended Year ended Year-on-year growth
30 April 2025
30 April 2024(2)
Revenue (£m) 350.1 341.1 2.6%
Gross profit (£m) 208.6 202.5 3.0%
Gross margin (%) 59.6% 59.4% 0.2%pts
Adjusted EBITDA (£m)(1) 96.8 95.5 1.3%
Adjusted EBITDA margin (%)(1) 27.6% 28.0% (0.4)%pts
Reported profit before taxation (£m) 3.0 46.4 (93.6)%
Adjusted profit before taxation (£m)(1) 67.5 58.2 16.0%
Adjusted earnings per share - basic (pence)(1) 15.0 12.7 18.1%
Dividend (pence) 3.0 - N/a
Free Cash Flow (FCF) (£m)(1) 66.1 61.0 8.4%
1. Stated before Adjusting Items of £56.7m in Adjusted EBITDA (FY24:
£3.5m), £64.6m (FY24: £11.8m) in operating profit, £62.6m (FY24: £9.4m)
in profit after taxation and £nil in Free Cash Flow (FY24: £2.4m). See Note
6 for more information.
2. Prior year figures include the benefit from excess non-redemption
of experience vouchers issued during Covid with extended expiry dates
Results summary
• Revenue of £350.1m, with the Moonpig brand growing at 8.6%
year-on-year.
• Adjusted EBITDA of £96.8m with margin of 27.6%.
• Adjusted EPS growth of 18.1% reflecting growth in trading and
lower interest costs.
• Strong cash generation with Free Cash Flow increasing by 8.4% to
£66.1m.
• Share buyback of £25m completed in H2 FY25 with intention to
repurchase up to £60m during FY26.
Strategic and operational highlights
Strong trading at Moonpig and continued progress towards growth at Greetz:
• Moonpig and Greetz active customers grew to 12.0m (April 2024:
11.5m), with both brands increasing their customer base in the second half.
Total orders grew by 4.1% with average order value rising by 2.1%.
• Moonpig revenue increased by 8.6% year-on-year, underpinned by
growth in orders.
• Moonpig revenue in the US, Australia and Ireland grew at a
combined 36.1% year-on-year.
• Greetz revenue decrease moderated to -4.7% in FY25, or -2.4% on a
constant currency basis as we leverage the technology platform. Since April
2025, revenue has been in line with prior year levels, also at constant
currency.
Strong operational momentum at Experiences:
• We are taking proactive steps to reposition the Experiences
proposition against a challenging market environment.
• H1 FY25 non-cash goodwill impairment charge for Experiences at
£56.7m, classified as an Adjusted Item.
• We expect to make continued strategic progress across the year
ahead, helped by a strengthened divisional management team, the rollout of new
features enabled by the completion of re-platforming during FY25 and a strong
pipeline of product launches in subscription gifting, casual dining and live
experiences.
Continued technology innovation and enhanced deployment of AI to drive
frequency and retention:
• Database of customer occasion reminders grew to 101 million (April
2024: 90 million) and use of creative features increased by 45% year-on-year
to 15 million in FY25.
• Moonpig Plus and Greetz Plus subscriptions increased to 920k
members (April 2024: 540k) with Moonpig Plus lifting members' average order
frequency by over 20%.
• New Initiatives contributed to recent strong momentum in gift
attach rate, which returned to growth in FY25.
Outlook for FY26
Since the start of the year, trading across the Group has been in line with
our expectations, including strong Father's Day trading. Moonpig is growing at
double-digit levels and Greetz revenue is in line with the prior year. At
Experiences, we continue to build on recent operational momentum.
For FY26, we expect Group Adjusted EBITDA to grow at a mid-single digit
percentage rate and growth in Adjusted earnings per share at between 8% and
12%, with continued strong free cash flow generation funding ongoing
investment in our growth strategy and consistent returns to shareholders.
With respect to the medium term, we continue to target double-digit revenue
growth, Adjusted EBITDA margin of 25% to 27% and mid-teens growth in Adjusted
EPS.
Nickyl Raithatha, CEO, commented
"We are pleased to report a year of strong Adjusted EPS growth and high free
cash flow, driven by the ongoing strength of the Moonpig brand. 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. Today, one in three
cards created on Moonpig and Greetz features at least one of our innovative
personalisation features - from AI handwriting to audio and video messages.
Since launching AI-generated stickers for the inside of cards in February our
customers have already created over four million unique images.
We recently celebrated Moonpig's 25th birthday and we were delighted to mark
this by reaching half a billion items sold since we were founded. Our database
of customer occasion reminders has grown to more than 100 million and we are
rapidly approaching one million members of the Moonpig Plus subscription
scheme, with both milestones demonstrating the engagement and loyalty of our
customers.
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. Looking ahead, Moonpig Group's clear market leadership puts
us in a strong position to capitalise on the long-term shift to online."
Investor and analyst meeting
The full year results presentation will be available on the Investor Relations
section of Moonpig Group's corporate website (www.moonpig.group/investors
(http://www.moonpig.group/investors) ) shortly after 7:00am on 26 June 2025.
Nickyl Raithatha (CEO) and Andy MacKinnon (CFO) will host a Q&A for
analysts and investors via webcast at 8:30am. Please note that the
presentation will not be repeated during the webcast.
Analysts wishing to register for the event should email investors@moonpig.com.
Investors wishing to listen to the Q&A should register via the following
link:
https://sparklive.lseg.com/MoonpigGroup/events/f4a9a843-cbf8-4135-9ebb-0e0eee76c206/moonpig-group-plc-fy2025-full-year-results-q-a
(https://sparklive.lseg.com/MoonpigGroup/events/f4a9a843-cbf8-4135-9ebb-0e0eee76c206/moonpig-group-plc-fy2025-full-year-results-q-a)
Enquiries
Brunswick
Group
44 20 7404 5959, moonpig@brunswickgroup.com
Helen Smith, Lana Serebryana
Moonpig
Group
investors@moonpig.com, pressoffice@moonpig.com
Nickyl Raithatha, Chief Executive Officer
Andy MacKinnon, Chief Financial Officer
About Moonpig Group
Moonpig Group plc (the "Group") is a leading online greeting cards and gifting
platform, comprising the Moonpig, Red Letter Days and Buyagift brands in the
UK and the Greetz brand in the Netherlands. The Group's leading customer
proposition includes an extensive range of cards, a curated range of gifts,
personalisation features and next day delivery offering.
The Group offers its products through its proprietary technology platforms and
apps, which utilise unique data science capabilities designed by the Group to
optimise and personalise the customer experience and provide scalability.
Learn more at https://www.moonpig.group/ (https://www.moonpig.group/) .
Forward Looking Statements
This announcement contains certain forward-looking statements with respect to
the financial condition, results or operation and businesses of Moonpig Group
plc. Such statements and forecasts by their nature involve risks and
uncertainty because they relate to future events and circumstances. There are
a number of other factors that may cause actual results, performance or
achievements, or industry results to be materially different from those
projected in the forward-looking statements.
These factors include general economic and business conditions; changes in
technology; timing or delay in signing, commencement, implementation and
performance of programmes, or the delivery of products or services under them;
industry; relationships with customers; competition and ability to attract
personnel. You are cautioned not to rely on these forward-looking statements,
which speak only as of the date of this announcement. We undertake no
obligation to update or revise any forward-looking statements to reflect any
change in our expectations or any change in events, conditions or
circumstances.
Business review
Overview
FY25 marked another year of successful delivery for Moonpig Group, as we
reinforced our position as the category-defining platform for greeting cards
and gifting. We are the clear market leader in online cards in both the UK and
the Netherlands, holding a 70% share of the UK online single cards market and
around 65% in the Netherlands through Greetz (source: OC&C, October 2024).
These positions reflect the compounding advantages of our platform, built on a
powerful combination of brand strength, scale and proprietary data. Our
position was further reinforced by extending our strategic asset of occasion
reminders to more than 101 million and deepening our powerful network effect
through reaching recipients with over 50 million personalised cards and gifts.
We operate in a structurally high-growth and underpenetrated market. The
online card market is still in its infancy, with only 6% penetration by volume
and 15% by value in the UK. We are driving and capturing this long-term
secular shift from offline to online through innovation in technology and
data. In FY25, we continued to extend our UK market leadership. At Greetz, the
technology platform is increasingly delivering operational and commercial
benefits and we exited the year on an encouraging trajectory. Across our
markets, our cards-first strategy and innovations in online experience
position us to lead and accelerate the ongoing channel shift.
Our platform leverages data, technology and AI to build customer loyalty and
grow customer cohort value over time. Nearly nine tenths of Moonpig and Greetz
revenue comes from existing customers, with technology playing a central role
in driving repeat behaviour. In FY25, we continued to expand the reach and
impact of both our reminders ecosystem and the Plus subscription membership
programme and launched new AI-powered tools to further differentiate our
offering from the offline market. Together, these capabilities have
strengthened customer growth and loyalty, which are key contributors to
our revenue growth.
We continue to demonstrate the strength of our asset-light, growth-compounding
business model, which enables us to scale efficiently while maintaining high
margins. Growth is driven by three compounding levers: more active customers,
higher purchase frequency, and rising average order value - particularly
through gift attachment. Our Adjusted EBITDA margin of 27.6% in FY25 reflects
high gross margins and low reliance on paid acquisition. With low inventory,
negative working capital and modest capex we are structurally asset light.
This model supports disciplined reinvestment in technology, marketing and
fulfilment automation, while generating Free Cash Flow of £66.1m in FY25. For
the year ahead, we expect this to enable significant capital returns to
shareholders whilst maintaining year-end net leverage at approximately 1.0x.
We continued to pursue our strategy of self-funded international expansion in
Ireland, Australia and the US with combined revenue from these markets growing
by 36.1% to £11.8m. Each market follows a structured path from discovery to
product-market fit and, if successful, ultimately to profitable growth.
Ireland has reached profitability in its second full financial year of
operation and, while still small, continues to grow steadily - validating our
phased approach. In Australia and the US, which are at an earlier stage of
development, we are applying Group capabilities while localising when
essential. Our small, agile teams in both markets are focused on rapid
iteration, testing and optimisation, aiming to establish sustainable and
profitable unit economics over time. Early signs are encouraging and support
our long-term conviction in the opportunity that these markets represent.
We enter FY26 with strong operational momentum and a clear focus on strategic
priorities. At Moonpig and Greetz we will continue to scale the active
customer base, to drive frequency by leveraging reminders, Plus subscriptions
and innovative technology features, and to build on recent strong momentum in
gift attach rate. The Experiences segment continues to face a challenging
market environment, with a proposition more exposed to cyclical pressures than
the rest of the Group. The transformation of Experiences will continue, with
encouraging progress underway in expanding the product proposition and
enhancing the customer experience. Our platform, underpinned by resilient
customer behaviour, leading technology and disciplined execution, positions us
to continue delivering sustained growth and shareholder value.
Leveraging data and technology
We harness technology and data to drive growth in two principal ways. First,
we continuously improve our user experience through high-frequency
experimentation. Each month, we run numerous controlled tests, presenting
feature variants to segmented customer groups. These experiments measure
impact on KPIs such as conversion and order value, with successful variants
deployed and used to guide future prioritisation. Second, we apply AI to our
proprietary customer data to deliver a more personalised journey. By combining
this data with advanced algorithms, we tailor the experience so customers are
more likely to find the perfect card and gift every time, driving improvements
in order frequency and average order value over time.
Moonpig and Greetz have shared a unified website platform since late 2022. In
FY25, we extended this integration by migrating Greetz to the same CRM system
as Moonpig, providing our marketing team with a common platform for email and
app notifications so they can more easily share best practices. We also moved
Greetz onto the same payment platform as Moonpig enabling automatic
subscription billing renewals for Greetz Plus. The two brands now share common
technology across all areas outside fulfilment, with new features available
for deployment in both the UK and the Netherlands. At the same time, we are
increasingly tailoring aspects of the user experience to local market needs -
for example, Greetz now features a redesigned delivery scheduler that accounts
for Dutch customers' greater price sensitivity, in contrast to UK customers'
stronger preference for speed of delivery.
We have focused on leveraging AI at every possible touchpoint to deliver the
most personalised shopping experience for our customers. We now use the latest
AI models to tag our cards, to better understand customer search queries, to
scan the image of each card and to analyse customer sentiment by scanning the
message in each card. Together, these deliver a self-improving experience
where our customers are finding and creating more relevant and meaningful
products with less effort than ever before.
We continued to launch innovative creative tools that set our proposition
apart and encourage repeat use. In December, we launched "Your Personal
Handwriting", enabling customers to upload and apply their handwriting as a
custom font, while in February we introduced AI stickers, allowing users to
generate bespoke images via natural language prompts - with over 4 million
created to date. These features build on a creative suite that also includes
audio and video messages, flexible photo layouts and digital gifts.
To streamline the login experience, we introduced social login using Apple and
Google credentials, alongside account linking to provide existing customers
who use social login with seamless access to their reminders. The "Magic Link"
feature now allows automatic login from reminder emails, while password resets
have been replaced by one-time login codes for ease of access.
We have also maintained a strong focus on customer satisfaction, enhancing
both the delivery and service experience. This includes upgrades to the
delivery scheduler interface, technology enablement for Moonpig Guaranteed
Delivery, and the launch of tracked card delivery in Ireland. Additionally, we
have expanded the use of AI-powered chatbots to handle a greater share of
customer service queries, enabling efficient, high-satisfaction self-service.
At Experiences, the completion of re-platforming has enabled the development
of a range of customer-facing features, with a focus on driving commercial
performance through enhanced product discovery and easier location-based
shopping:
• Site-wide navigation across Red Letter Days and Buyagift,
alongside upgraded mobile filters, to improve usability and help customers
find products more easily.
• Gift Finder tool, integrated into the homepage and navigation, to
enable customers to narrow choices by location and category before viewing
tailored experience listings.
• Redesigned product details page layout to reinforce trust by
clearly presenting key highlights, voucher inclusions, and unique selling
points such as "Fully Flexible", "Easy Extensions", and "Instant Delivery".
• Next Best Action feature to surface personalised product
recommendations after each detail page visit, increasing relevance and upsell
potential.
• Location-based shopping innovations to offer improved filters,
interactive maps for multi-choice vouchers and custom landing pages for
top-searched destinations.
• Occasion-specific UX for events like Father's Day to adapt
homepage, landing and listing pages and maximise relevance and conversion
during peak periods.
Building our brands
The strength of our brands is most clearly demonstrated by our ability to
continuously acquire customers profitably and to keep them coming back year
after year. We have made significant progress here in FY25, with the total
active customer base at Moonpig and Greetz increasing by 4.3% to 12.0 million
as at 30 April 2025 (30 April 2024: 11.5 million). This performance reflects
the strength of our well-optimised marketing platform, which consistently
delivers customer acquisition at scale within our 12-month payback threshold.
It was further enhanced by technology developments such as social login,
which improved the conversion of visitors into new customers. Moonpig saw
consistently strong acquisition throughout the year, with Greetz new customers
returning to year-on-year growth in H2 FY25.
Headline frequency remained unchanged year-on-year at 2.94 orders per active
customer. This reflects the mix impact of strong new customer acquisition, as
year one cohorts have lower frequency than our overall customer base.
Frequency among established Moonpig customers was underpinned by continued
development of our frequency levers:
• Our reminders ecosystem continues to scale, with our database of
occasion reminders increasing to 101 million at 30 April 2025 (FY24: 90
million). Nearly 40% of Moonpig orders are placed within seven days of a
customer receiving the relevant occasion reminder, underlining the importance
of this proprietary channel in driving both frequency and retention.
• Subscriptions to Moonpig Plus and Greetz Plus grew to a combined
920,000 (April 2024: 540,000), with members' purchase frequency uplifted by
more than 20% when they subscribe. These members are our most engaged
customers, setting 2.5 times more occasion reminders than non-members who are
active customers and they also exhibit materially higher gift attachment rates
and app usage.
• We continued to drive customer usage of innovative creative
features that differentiate our greeting card proposition and drive frequency.
Total usage of card creative features rose to 15 million in FY25, up from 10
million in the prior year.
Reliable delivery is central to how our brand is perceived and we are evolving
our delivery proposition at pace. In FY24, we introduced an affordable tracked
next-day delivery service for cards at seasonal peak events. We have since
built on this to launch Moonpig Guaranteed Delivery as an always-on option
allowing customers to select a guaranteed delivery date at checkout. Adoption
has been strong with the service accounting for over one third of card-only
orders by April 2025.
We are also building brand awareness in new markets as the foundation for
long-term growth. We continue to operate New Markets as a single profit pool,
reinvesting profit growth to support scalable customer acquisition. Total
revenue across these markets grew to £11.8m in FY25 (FY24: £8.7m), led by
Australia (£4.9m) and Ireland (£4.8m). In FY26, we plan to prioritise
Australia for incremental investment, aiming to reach healthy payback metrics
in this key market.
Evolving our range
One of our three growth levers is increasing average order value, with the
primary driver being growth in gift attach rate. We pursue this in three ways:
improving the user experience, enhancing our recommendation algorithms and
expanding our gifting range. A key element of the third pillar is partnering
with trusted consumer brands.
Trusted brands give customers confidence in the quality and appeal of our
gifts. In FY25, we introduced new collaborations with Hotel Chocolat in
premium chocolate, Next in beauty and homeware and The Fragrance Store in
perfume. We also partnered with The Entertainer and Early Learning Centre to
manage our entire children's toy proposition on a consignment basis,
eliminating inventory risk. These partners contribute deep category
merchandising expertise, enrich our curated range and lend their brand equity
to our platform. Their introduction supported robust gift attach rate growth
during the second half of the year. Looking ahead, we are actively engaging
with several additional high-profile trusted brands, with further launches
planned for FY26.
In New Markets, our objective is to increase customer lifetime value to
support future scaling of marketing, and gifting range expansion is a key
element of this. In Ireland, three years post-launch, we now offer over 160
gifts to support double-digit percentage attach rates and higher repeat
purchase; we broadened our local range during the year with the launch of
balloons. In Australia, we expanded during FY25 into new categories including
chocolate and hampers. In the United States, we have launched an initial range
of gifts including digital retail gift cards and personalised mugs. Alongside
this, we have expanded our fulfilment infrastructure in both Australia and the
US through new partnerships with third-party fulfilment centres in Sydney and
Las Vegas.
Our global design platform is the driving force behind our card offering, a
marketplace that connects us with designers worldwide. During FY25 we
onboarded a range of cards from Scribbler and expanded our selection of cards
for secondary card-giving occasions to support new customer acquisition
campaigns. We also broadened our range of card designs for recipients outside
the household to facilitate growth in direct-to-recipient deliveries which
have a higher propensity for gift attachment. At Greetz, we strengthened our
portfolio by licensing over 60 global and Dutch brands.
Control of in-house fulfilment has enabled investment to drive efficiency
improvements. In September 2024, we insourced UK balloon fulfilment to improve
gross margin. For FY26, we are investing in automated parcel sortation, which
is an enabler for broadening our range of gift delivery options, together with
specialist printers that will enable the insourcing of giant
card fabrication.
At Experiences, we have maintained our focus on refreshing and expanding the
proposition, with a strong pipeline and an expected acceleration in the rate
of new product launches during H1 FY26. Expansion is concentrated on branded
partners and categories with clear consumer demand. We have launched new live
and immersive experiences including The Traitors Live Experience, Squid Game,
The FRIENDS Experience, and Elvis Evolution. In subscription gifting, we have
added brands such as Gousto and Glossybox, with further launches imminent
across categories including wine, magazines and flowers. We are also growing
our range of social and competitive experiences through partnerships such as
Monopoly Lifesized. In pubs, bars and casual dining, we have added well-known
brands including Slug & Lettuce and BrewDog.
Maintaining high ethical, environmental and sustainability standards
In FY25, we sharpened our focus by developing a revised sustainability
strategy, shaped by our double materiality assessment of sustainability risk.
The strategy defines four goals across three areas of maximum impact:
• Climate change - direct emissions: We have maintained our target
to reduce absolute Scope 1 and 2 emissions by at least 50% by 2030 (a target
that has been validated by the SBTi) and reduce operational emissions by at
least 90% by 2050 with the remaining residual emissions to be offset.
• Climate change - value chain emissions: We have retained our
existing goal to secure commitments from suppliers to adopt SBTi-aligned net
zero targets covering 67% of our Scope 3 emissions by 30 April 2030 and
reduce Scope 3 emissions intensity by 97% by 2050.
• Waste and circularity: We have set a goal to reduce overall waste
and packaging generation in alignment with EPR guidance by improving the
efficiency of material use and ensuring responsible end-of-life management.
Work is ongoing with suppliers to collate data so that we can set a FY25
baseline for tracking this goal.
• Technology security and data privacy: We have set a goal to
implement an information security management system that aligns with the NIST
Cybersecurity Framework by 2030.
During the year, we increased the proportion of Scope 3 emissions covered by
SBTi-aligned net zero supplier commitments to 28.8%, up year-on-year from
19.3% the previous year. We also reduced absolute location-based Scope 3
emissions by 5.0% year-on-year.
We eliminated single-use plastics from shipping packaging in our Dutch
operations during FY25, having previously delivered the same in the UK. To
maintain our "forest positive" stance, we funded the planting of 113 hectares
or 151,000 trees, helping to restore biodiversity and sequester carbon. We
also implemented a new UK warehouse management system which we expect to
assist in packaging waste reduction in FY26.
The adoption of a formal goal for data and technology security was timely,
given recent cyber-attacks targeting high-profile UK consumer businesses. In
response, we have reviewed our internal processes and controls to ensure they
remain resilient. We have invested significantly in technology security
across many years and intend to maintain a robust security posture.
Financial review
Introduction
We delivered strong growth in profit before tax in FY25, with Adjusted PBT
rising by 16.0% to £67.5m and Adjusted basic EPS increasing by 18.1% to 15.0
pence. This reflects consistent revenue growth at the Moonpig segment,
sustained Adjusted EBITDA margins and strong Free Cash Flow that has
accelerated earnings growth through lower interest costs and a smaller share
count following the repurchase and cancellation of shares.
Moonpig Group's revenue base is high-quality and predictable. Nearly
nine-tenths of Moonpig and Greetz revenue derives from existing customers,
with retention improving across all cohorts and frequency remaining stable.
These cohort dynamics underpin consistent revenue growth, reinforce resilience
and contribute to steadily rising customer lifetime value.
Technology is our core revenue growth engine, with data forming a structural
moat. Every day, we collect more than twice as much data as the rest of the
greeting card market combined, deepening our competitive advantage. We have
over 101m customer occasion reminders, allowing us to engage customers at
moments of gifting intent. AI enhancement such as personalised gifting
algorithms, sentiment analysis and semantic search continue to increase
conversion, basket size and overall customer engagement.
Moonpig's growth strategy is grounded in three clear and compounding revenue
drivers: expanding our active customer base, increasing order frequency and
growing average order value - in particular, through growth in gift
attachment. Our ability to acquire customers at under 12 months' payback and
deepen their value over time supports sustainable revenue growth over the
medium term. The Plus subscription programme now accounts for approximately
20% of Moonpig orders in the UK and lifts members' average order frequency
by over 20%. We returned gift attach rate to growth in FY25, with momentum
building as the year progressed.
Our platform is structurally profitable and capital light. We maintain high
gross margins, operate with negative working capital and manage capex within a
disciplined ROI framework. With low inventory risk and operational leverage
across fulfilment and technology, the Group consistently delivers high and
growing operating cash flow. These fundamentals enable us to both invest in
future growth and generate excess capital.
We generate strong cash flow and allocate capital with discipline. In FY25,
Free Cash Flow was £66.1m (FY24: £61.0m). Adjusted operating cash flow,
which is stated before capital expenditure, was £82.3m (FY24: £74.2m),
representing an Adjusted operating cash conversion rate of 85%. This supported
a reduction in net leverage to 0.99x (FY24: 1.31x) and a £25.0m share
repurchase programme. The Board has proposed dividends of 3.0 pence per share,
amounting to an estimated total dividend distribution of approximately
£10.0m, dependent on issued share capital at the next record date. The FY25
dividend is covered 5.0x by Adjusted profit before taxation - above our
medium-term target range of 3x to 4x. With our growth priorities fully funded,
we intend to repurchase up to £60.0m of shares in FY26, whilst maintaining
year-end leverage in line with our 1.0x target.
In combination, these attributes create a platform with high operating
leverage, predictable revenue and efficient capital deployment. This has
delivered sustained cash generation and Adjusted EPS growth of 18.1%. We
expect to deliver consistent mid-teens growth in Adjusted EPS in
future years.
Financial performance - Group
Year ended Year ended Year-on-year growth
30 April 2025 30 April 2024
Revenue (£m) 350.1 341.1 2.6%
Gross profit (£m) 208.6 202.5 3.0%
Gross margin (%) 59.6% 59.4% 0.2%pts
Adjusted EBITDA (£m)(1) 96.8 95.5 1.3%
Adjusted EBITDA margin (%)(1) 27.6% 28.0% (0.4)%pts
Reported profit before taxation (£m) 3.0 46.4 (93.6)%
Adjusted profit before taxation (£m)(1) 67.5 58.2 16.0%
Reported earnings per share - basic (pence) (3.2) 10.0 (132.0)%
Adjusted earnings per share - basic (pence)(1) 15.0 12.7 18.1%
Free Cash Flow (FCF) (£m)(1) 66.1 61.0 8.4%
Net leverage 0.99x 1.31x (0.32)x
1. Stated before Adjusting Items of £56.7m in Adjusted EBITDA (FY24:
£3.5m), £64.6m in profit before taxation (FY24: £11.8m), £62.6m (FY24:
£9.4m) in profit after taxation and £nil is in Free Cash Flow (FY24:
£2.4m). See Adjusting Items at Note 6.
The Group delivered revenue of £350.1m, representing year-on-year growth of
2.6%. This was driven by strong revenue growth of 8.6% at Moonpig, offset in
part by performance at Greetz and Experiences. The prior year includes
annualisation of prior year temporary additional non-redemption revenue on
expired vouchers at Experiences.
Revenue growth at Moonpig was driven by growth in both orders and AOV. This
was underpinned by technology investment, with our product, data and
technology workforce focused on initiatives that delivered growth in new
customer acquisition and customer purchase frequency. We also delivered a
return to year-on-year growth in gift attach rate across both H1 and H2 FY25,
with growth accelerating in the second half of the year.
We have continued to make progress at Greetz, with revenue decreases
moderating from a decrease of 7.5% in FY24 to 4.7% in FY25. On a constant
currency basis, this equates to a decrease of 2.4% for the financial year.
Greetz had a softer start to the second half of the year, but recent
performance has been more encouraging, with an improved exit rate to FY25. A
broad range of operational KPIs have maintained an upward trajectory,
including new customer acquisition, brand keyword traffic, customer
satisfaction scores and gift attachment rates. From April 2025 onwards, Greetz
revenue has been in line with prior year on a constant currency basis.
The Experiences segment continues to face a challenging market environment,
with a proposition more exposed to cyclical pressures than the rest of the
Group. The £56.7m non-cash impairment charge to goodwill recognised as at 31
October 2024 remained unchanged at year-end. We now have strong operational
momentum in the Experiences business, which we will continue to build on in
FY26, helped by a strengthened divisional management team, the rollout of new
features enabled by the completion of re-platforming during FY25 and a strong
pipeline of product launches in subscription gifting, casual dining and live
experiences.
The Group maintained Adjusted EBITDA margin rate at 27.6% (FY24: 28.0%),
despite the absence of the prior year Covid-related non-redemption revenue at
100% margin. Excluding this one-time benefit, underlying margin performance
strengthened - supported by intake margin improvements at Moonpig, operational
efficiencies in UK fulfilment and continued expansion of higher-margin revenue
streams such as Plus subscription fees.
Adjusted profit before taxation increased by 16.0% to £67.5m (FY24: £58.2m),
driven by lower net finance charges as we refinanced to lower-cost debt
facilities in February 2024 and lower drawdown on our revolving credit
facility.
Adjusted basic EPS for FY25 increased by 18.1% to 15.0 pence (FY24: 12.7
pence) as strong Free Cash Flow of £66.1m (FY24: £61.0m) enabled us to both
reduce net finance costs through deleveraging and lower our average issued
share capital through repurchasing and cancelling shares.
Revenue
Year ended Year ended Year-on-year
30 April 2025 30 April 2024
growth %
Active customers (m) 12.0 11.5 4.1%
Orders per active customer (number) 2.94 2.94 0.0%
Moonpig and Greetz orders (m) 35.3 33.9 4.1%
Moonpig and Greetz AOV (£ per order) 8.8 8.6 2.1%
Moonpig and Greetz revenue (£m) 310.9 292.5 6.3%
Moonpig revenue (£m) 262.0 241.3 8.6%
Greetz revenue (£m) 48.9 51.2 (4.7)%
Moonpig and Greetz revenue (£m) 310.9 292.5 6.3%
Experiences revenue (£m) 39.2 48.6 (19.3)%
Group revenue (£m) 350.1 341.1 2.6%
Moonpig and Greetz revenue increased by 6.3% year-on-year, driven by increases
in both order volumes and average order value (AOV). Active customers grew by
4.1% to 12.0m, reflecting consistent year-on-year new customer acquisition.
Whilst headline order frequency remained unchanged at 2.94 orders per active
customer (FY24: 2.94), this includes the mix impact from particularly strong
new customer acquisition. We continued to make strong progress with the
drivers of underlying frequency growth, including reminders collection and
Plus subscriptions. Average order value increased by 2.1% year-on-year, driven
by postage price increases, more efficient targeting of promotional activity
and year-on-year growth in gift attach rate.
Group revenue growth was powered by Moonpig, at which revenue increased by
8.6% year-on-year. The revenue trajectory at Greetz continued to improve from
a 7.5% decrease in FY24 to a decrease of 4.7% in FY25 including the adverse
impact from foreign exchange translation. On a constant currency basis, Greetz
sales in FY25 were 2.4% lower than the prior year.
Moonpig is driving growth in sales where it acts as an agent, for children's
toys and gift experiences. Under the agency model, only commission earned is
recognised as revenue, resulting in lower reported revenue compared to the
gross amount that would be recorded if the Group acted as principal.
At Experiences, the reported year-on-year reduction in revenue includes the
prior year recognition of temporarily higher non-redemption relating to gift
boxes (primarily distributed through high street retail partners) and
individual experiences vouchers that were sold during Covid with extended
expiry dates. As these extended expiry dates have now passed, this benefit did
not repeat in FY25.
Group revenue is weighted towards the second half of the year, reflecting key
trading peaks including Christmas, Valentine's Day and UK Mother's Day. In
FY25, H2 accounted for approximately 55% of Moonpig revenue, 50% at Greetz and
62% at Experiences (FY24: 55%; 51% and 61% respectively). This resulted in
around 55% (FY24: 55%) of total Group revenue being generated in the second
half.
Gifting mix of revenue
Year ended Year ended Year-on-year
30 April 2025 30 April 2024
growth %
Moonpig and Greetz cards revenue (£m) 186.0 172.0 8.1%
Moonpig and Greetz attached gifting revenue (£m) 116.3 110.8 5.0%
Moonpig and Greetz standalone gifting revenue (£m) 8.6 9.7 (11.1)%
Moonpig and Greetz revenue (£m) 310.9 292.5 6.3%
Experiences gifting revenue (£m) 39.2 48.6 (19.3)%
Group revenue (£m) 350.1 341.1 2.6%
Moonpig / Greetz total gifting revenue (£m) 124.9 120.5 3.7%
Moonpig / Greetz gifting revenue mix (%) 40.2% 41.2% (0.9)%pts
Group gifting mix of revenue (%) 46.9% 49.6% (2.7)%pts
Growth in attached gifting revenue reflected both the 4.1% increase in total
orders and strengthening gift attach rate, which increased year-on-year by 0.2
percentage points in H1 FY25 and 0.7 percentage points in H2 FY25. In our
card-first model, card order volume is a key driver of gifting revenue. Gift
attach rate strengthened through the year, supported by the introduction of
trusted brands such as Hotel Chocolat, The Entertainer and Next, as well as
enhancements to our gifting recommendation algorithms. The continued expansion
of the Plus membership base was also positive, as members have a higher
average gift attach rate than non-members - a trend that holds even with their
uplifted frequency of purchase.
Although standalone gifting revenue decreased year-on-year, this area is not a
primary focus, as our strategy remains to prioritise growth in greeting cards
and attached gifting to drive purchase frequency and customer lifetime value.
Gross margin rate
Year ended Year ended Year-on-year
30 April 2025 30 April 2024
growth %
Moonpig gross margin (%) 57.0% 55.2% 1.8%pts
Greetz gross margin (%) 46.1% 47.1% (1.0)%pts
Moonpig and Greetz gross margin (%) 55.3% 53.8% 1.5%pts
Experiences gross margin (%) 93.9% 92.9% 1.0%pts
Group gross margin (%) 59.6% 59.4% 0.2%pts
Gross margin rate was 59.6% (FY24: 59.4%), supported by a 1.8 percentage point
increase in Moonpig gross margin rate. This reflects improved intake margin
from the commercial management of supplier relationships, leveraging AI to
make more targeted use of promotional discounts and the successful
implementation of efficiency projects at our UK facility including the
insourcing of UK balloon fulfilment.
In addition, Moonpig and Greetz revenue includes £10.8m (FY24: £6.2m) from
income streams with a 100% incremental gross margin rate, such as Plus renewal
subscription fees, on-site marketing income and commissions earned on the sale
of toys and digital gift experiences as agent. In due course, we expect this
to exert some upward pressure on both gross profit margin and Adjusted EBITDA
margin (whilst reducing reported revenue from gross transaction value to
commission earned on sales as agent). At the same time, the impact of growth
in gift attach rate will be to place downward pressure on headline gross
margin rate due to adverse category mix, albeit driving growth in absolute
gross profit.
The reduction in gross margin at Greetz reflects increased promotional
intensity in gifting.
Experiences gross margin rate remained relatively consistent year-on-year at
93.9% (FY24: 92.9%). The high gross margin rate at Experiences reflects the
nature of revenue recognised at this segment, which comprises agency
commission earned from partners for the distribution of experiences, rather
than gross transaction value. Cost of goods at the Experiences segment related
primarily to packaging and distribution for those orders where the consumer
elects to pay for a physical gift box rather than digital delivery.
Adjusted EBITDA margin
Year ended Year ended Year-on-year
30 April 2025 30 April 2024
growth %
Moonpig Adjusted EBITDA margin % 31.2% 30.1% 1.1%pts
Greetz Adjusted EBITDA margin % 13.2% 15.3% (2.1)%pts
Moonpig and Greetz Adjusted EBITDA margin % 28.4% 27.5% 0.9%pts
Experiences Adjusted EBITDA margin % 21.6% 30.9% (9.3)%pts
Group Adjusted EBITDA margin % 27.6% 28.0% (0.4)%pts
The Group maintained Adjusted EBITDA margin rate at 27.6% (FY24: 28.0%).
Excluding prior year excess non-redemption, there was an underlying
improvement in Adjusted EBITDA margin rate, driven by Moonpig.
At Moonpig, higher Adjusted EBITDA margin rate reflected the pass-through of
higher gross margin rate. In contrast, Greetz's Adjusted EBITDA margin
decreased, impacted by lower revenue, operational leverage and higher
promotional activity in gifting. At Experiences, the lower Adjusted EBITDA
margin reflects prior year excess non-redemption, the year-on-year reduction
in revenue and the negative impact of operational leverage.
Depreciation, amortisation, finance costs and taxation
Year ended Year ended Year-on-year
30 April 2025 30 April 2024
growth %
Adjusted EBITDA (£m) 96.8 95.5 1.3%
Depreciation and amortisation (£m) (18.9) (17.4) 8.6%
Adjusted EBIT (£m) 77.8 78.1 (0.3)%
Net finance costs (£m) (10.3) (19.9) (48.0)%
Adjusted profit before taxation (£m) 67.5 58.2 16.0%
Adjusted taxation (£m) (16.0) (14.6) 9.6%
Adjusted profit after taxation (£m) 51.5 43.6 18.1%
Depreciation and amortisation (excluding acquisition-related amortisation)
increased from £17.4m in FY24 to £18.9m in FY25, driven by continued
investment in operational facilities and technology development. There has
been no change in the Group's accounting policies or practices relating to
the capitalisation of costs as internally generated intangible assets. We
continue to amortise internally generated intangible assets over a relatively
short useful life of three years.
Net finance costs decreased to £10.3m (FY24: £19.9m):
• Interest on bank borrowings decreased from £12.3m in FY24 to
£7.7m in FY25, reflecting lower drawdown on the Group's revolving credit
facilities and lower margins following the refinancing of facilities in
February 2024.
• Amortisation of fees decreased from £5.0m in FY24 to £0.8m in
FY25, reflecting lower arrangement fees following the Group's February 2024
refinancing to new revolving credit facilities.
• Imputed interest on the Experiences merchant liability balance
increased from £1.6m in FY24 to £1.8m in FY25. The merchant accrual is
treated as a financial liability and discounted to present value in accordance
with IFRS 9.
• Interest on lease liabilities decreased from £0.9m in FY24 to
£0.7m in FY25, reflecting scheduled lease repayments.
• There was a £0.9m year-on-year movement in net foreign exchange
gain/(loss) on financing activities. The monetary foreign exchange impact of
Euro-denominated intercompany loan balances resulted in the Group recognising
a £0.5m gain (FY24: £0.4m loss), with the corresponding intercompany loss
recognised in other comprehensive income in accordance with IAS 21. Also
included in net foreign exchange on financing activities is a £0.1m gain
(FY24: £nil) on the revaluation of the Group's euro denominated external
debt.
The Adjusted taxation charge was £16.0m (FY24: £14.6m). Expressed as a
percentage of Adjusted profit before taxation, the Adjusted effective tax rate
was 23.7% (FY24: 25.1%). This was lower than prevailing rates of corporation
tax due to the positive impact of deferred tax movements in relation to
share-based payment arrangements, driven by increases in the Group's share
price. The reported taxation charge was £14.0m (FY24: £12.2m), with the
difference from Adjusted taxation relating to deferred tax on acquisition
related intangible assets.
Alternative Performance Measures
The Group has identified certain Alternative Performance Measures (APMs) that
it believes provide additional useful information on the performance of the
Group. These APMs are not defined within IFRS and are not intended to
substitute or be considered as superior to IFRS measures. Furthermore, these
APMs may not necessarily be comparable to similarly titled measures used by
other companies. The Group's Directors and management use these APMs in
conjunction with IFRS measures when budgeting, planning and reviewing business
performance.
Year ended 30 April 2025 Year ended 30 April 2024
Adjusted Measures(1) Adjusting Items(1) IFRS Adjusted Measures(1) Adjusting Items(1) IFRS
Measures Measures
EBITDA (£m) 96.8 (56.7) 40.1 95.5 (3.5) 92.0
Depreciation and amortisation (£m) (18.9) (7.9) (26.8) (17.4) (8.3) (25.7)
EBIT (£m) 77.8 (64.6) 13.3 78.1 (11.8) 66.3
Finance costs (£m) (10.3) - (10.3) (19.9) - (19.9)
Profit before taxation (£m) 67.5 (64.6) 3.0 58.2 (11.8) 46.4
Taxation (£m) (16.0) 2.0 (14.0) (14.6) 2.4 (12.2)
Profit / (loss) after taxation (£m) 51.5 (62.6) (11.1) 43.6 (9.4) 34.2
Basic earnings per share (pence) 15.0p (18.2)p (3.2)p 12.7p (2.7)p 10.0p
EBITDA margin (%) 27.6% - 11.5% 28.0% - 27.0%
EBIT margin (%) 22.2% - 3.8% 22.9% - 19.4%
PBT margin (%) 19.3% - 0.9% 17.1% - 13.6%
1. See Adjusting Items at Note 6.
2. Figures in this table are individually rounded to the nearest
£0.1m. As a result, there may be minor discrepancies in the sub-totals and
totals due to rounding differences.
Adjusting Items comprise the following:
Year ended Year ended Year-on-year movement
30 April 2025 30 April 2024
Pre-IPO share-based payment charges (£m) - (1.1) 1.1
Pre-IPO cash bonus awards (£m) - (2.4) 2.4
Acquisition amortisation (£m) (7.9) (8.3) 0.4
Impairment of goodwill (£m) (56.7) - (56.7)
Operating profit impact of Adjusting Items (£m) (64.6) (11.8) (52.8)
Taxation on pre-IPO share-based payment charges (£m) - (0.3) 0.3
Taxation on pre-IPO cash bonus awards (£m) - 0.6 (0.6)
Taxation on acquisition amortisation (£m) 2.0 2.1 (0.1)
Taxation on impairment of goodwill (£m) - - -
Taxation on Adjusting Items (£m) 2.0 2.4 (0.4)
Post-tax impact of Adjusting Items (£m) (62.6) (9.4) (53.2)
Pre-IPO incentive scheme costs consist of £nil (FY24: £1.1m) share-based
payment charges and £nil (FY24: £2.4m) cash bonus awards. These relate to
one-off compensation arrangements, which fully vested at the end of the FY24
financial year. The Group treats these costs as Adjusting Items as they relate
to one-off awards implemented whilst the Group was under private equity
ownership and are not part of the Group's ongoing remuneration arrangements.
Acquisition amortisation of £7.9m (FY24: £8.3m) relates to the amortisation
of intangible assets arising on the acquisition of the Greetz and Experiences
segments. This is treated as an Adjusting Item as it does not reflect the
underlying performance of the Group but is a result of the accounting
requirements for a business combination under IFRS 3. Adjusted taxation
excludes the credit to reported taxation relating to the unwind of the
deferred taxation liability that was recognised alongside the intangible
assets arising on business combination.
The non-cash impairment charge relating to Experiences CGU goodwill of £56.7m
(FY24: £nil) has been classified as an Adjusting Item.
Determining which items should be classified as Adjusting Items involves the
exercise of judgement. We do not classify the following as Adjusting Items on
the basis that they are recurring costs associated with delivery of financial
performance. However, we have observed that certain users of our accounts
adopt a different approach in their own financial modelling and have therefore
provided the information below to assist these users. The charge for FY25
reflects relatively low expected vesting for awards maturing in 2025. We
currently expect materially higher vesting for subsequent awards, which is
reflected in technical guidance.
Year ended Year ended
30 April 2025 30 April 2024
Share-based payment charges relating to operation of post-IPO Remuneration (3.5) (3.1)
Policy(1) (£m)
1. Stated inclusive of employer's national insurance of £1.6m (FY24
£0.5m). The increase in national insurance reflects higher current share
price and expected increase in the Group's share price through to the vesting
date of each scheme.
Earnings per share (EPS)
Adjusted basic EPS for FY25 increased from 12.7p in FY24 to 15.0p in FY25,
reflecting the 18.1% year-on-year increase in Adjusted profit after taxation
and the impact of repurchasing and cancelling shares. After accounting for
unvested employee share awards, Adjusted diluted earnings per share was 14.5p
(FY24: 12.3p). Reported basic EPS loss per share of 3.2p (FY24: earnings
10.0p) reflects the non-cash impairment charge of £56.7m.
Year ended Year ended Year-on-year
30 April 2025 30 April 2024
growth %
Adjusted basic EPS (pence) 15.0 12.7 18.1%
Reported basic EPS (pence) (3.2) 10.0 (132.0)%
Adjusted diluted EPS (pence) 14.5 12.3 17.9%
Reported diluted EPS (pence) (3.2) 9.6 (132.3)%
Weighted average issued share capital (number of shares) 342,548,159 343,093,868 (0.2)%
Weighted average diluted share capital (number of shares) 356,141,330 354,787,805 0.4%
Closing issued share capital (number of shares) 333,845,736 343,310,015 (2.8)%
The calculation of basic EPS is based on the weighted average number of
ordinary shares outstanding. The period-on-period movement reflects the
repurchase and cancellation of 11,061,434 (2024: nil) shares during the year.
This was offset in part by the issue of 1,597,155 (2024: 1,198,394) shares
including 1,413,971 of shares to satisfy the final tranche of the pre-IPO
award in July 2024 and 183,184 shares in respect of the operation of post-IPO
remuneration policy. The Group expects to move during FY26 to satisfying share
awards through market purchases rather than through dilution, subject to this
remaining EPS-accretive at the prevailing share price.
Free Cash Flow
The Group is cash generative, with Free Cash Flow (FCF) of £66.1m (FY24:
£61.0m). Adjusted operating cash flow, which includes capital expenditure,
was £82.3m (FY24: £74.2m), representing Adjusted operating cash conversion
rate of 85% (FY24: 78%).
Year ended 30 April 2025 Year ended 30 April 2024
Adjusted Measures(1) Adjusting Items(1) IFRS Adjusted Measures(1) Adjusting Items(1) IFRS
Measures
Measures
£m £m £m £m £m £m
Profit before tax 67.5 (64.6) 3.0 58.2 (11.8) 46.4
Add back: net finance costs 10.3 - 10.3 19.9 - 19.9
Add back: depreciation and amortisation 18.9 7.9 26.8 17.4 8.3 25.7
EBITDA(2) 96.8 (56.7) 40.1 95.5 (3.5) 92.0
Adjust: impact of share-based payments(3) 1.8 - 1.8 3.1 1.1 4.2
Add back: (increase) / decrease in inventories (1.4) - (1.4) 5.2 - 5.2
Add back: decrease in receivables 0.7 - 0.7 0.2 - 0.2
Add back: (decrease) in Experiences merchant accrual (6.8) - (6.8) (8.2) - (8.2)
Add back: increase / (decrease) in trade and other payables 4.4 - 4.4 (7.9) - (7.9)
Add back: impairment of goodwill - 56.7 56.7 - - -
Add back: loss on foreign exchange - - - 0.3 - 0.3
Less: research and development tax credits (0.2) - (0.2) (0.5) - (0.5)
Cash generated from operations 95.4 - 95.4 87.6 (2.4) 85.3
Less: income tax paid (16.2) - (16.2) (10.7) - (10.7)
Net cash generated from operating activities 79.2 - 79.2 76.9 (2.4) 74.6
Capital expenditure (13.3) - (13.3) (13.7) - (13.7)
Bank interest received 0.2 - 0.2 0.2 - 0.2
Net cash used in investing activities (13.1) - (13.1) (13.5) - (13.5)
Free Cash Flow (FCF)(2) 66.1 - 66.1 63.4 (2.4) 61.0
EBITDA to FCF conversion %(2) 68% 165% 66% 66%
Cash generated from operations 95.4 - 95.4 87.6 (2.4) 85.3
Less: capital expenditure (13.3) - (13.3) (13.7) - (13.7)
Less: loss on foreign exchange - - - (0.3) - (0.3)
Add back: pre-IPO cash bonus award - - - - 2.4 2.4
Add back: research and development tax credits 0.2 - 0.2 0.5 - 0.5
Operating cash flow(2) 82.3 - 82.3 74.2 - 74.2
Operating cash conversion %(2) 85% 205% 78% 81%
1. See Adjusting Items at Note 6.
2. EBITDA, Free Cash Flow (FCF), FCF conversion, operating cash flow
and operating cash conversion are non-IFRS measures. FCF is defined as net
cash generated from operating activities less net cash used in investing
activities; it excludes proceeds from or payments for mergers and acquisitions
but (as a practical expedient and for greater consistency with IAS 7
classification of cash flows) is not adjusted to exclude bank interest
received. Adjusted operating cash conversion, which is defined as the ratio of
operating cash flow to Adjusted EBITDA, informs management and investors about
the cash operating cycle of the business and how efficiently operating profit
is converted into cash.
3. The adjusted add-back relates to non-cash share-based payment
charges of £1.8m (FY24: £3.1m) arising from the operation of post-IPO
Remuneration Policy. The adjusting item add-back relates to pre-IPO
remuneration of £nil (FY24: £1.1m).
4. Figures in this table are individually rounded to the nearest
£0.1m, hence sub-totals and totals may not sum due to rounding differences.
Cash generated from operations was £95.4m (FY24: £85.3m):
• There was a year-on-year increase in inventory of £1.4m (FY24:
£5.2m decrease), reflecting variation in intake within normal operational
parameters. The FY24 decrease in inventory reflected one-time improvements on
inventory management.
• There was a cash outflow from the Experiences merchant accrual of
£6.8m (FY24: £8.2m outflow). The larger prior year movement reflects higher
non-redemption.
• There was an inflow in respect of other trade and other payables
of £4.4m (FY24: £7.9m outflow). This reflects higher trade creditors driven
by timing of payments and growth in trading.
Capital expenditure remained broadly consistent year-on-year at £13.3m (FY24:
£13.7m). This equates to 3.8% of revenue and is below the lower end of our
medium-term target range. We expect higher capital expenditure in FY26 as a
result of investment in automation at our operational facilities, together
with a reversion in technology capitalisation rate to normal levels; during
FY25 there have been a number of technology projects, such as the
implementation of a new warehouse management system and the migration of
Greetz to the same card payment processing platform as Moonpig, which comprise
SaaS configuration. As these arrangements grant access to rather than control
of the software, they do not give rise to an intangible asset under IFRS;
accordingly, the associated payroll costs have been recognised as operating
expenses.
Net debt
Net debt at 30 April 2025 improved to £96.0m (April 2024: £125.1m). Net debt
is a non-GAAP measure and is defined as total borrowings, including lease
liabilities, less cash and cash equivalents. The ratio of net debt to Adjusted
EBITDA improved to 0.99x (30 April 2024: 1.31x), in line with our
medium-term target of 1.0x.
As at As at
30 April 2025 30 April 2024
Borrowings(1 ) (£m) (95.1) (118.4)
Cash and cash equivalents (£m) 12.6 9.6
Borrowings less cash and cash equivalents (£m) (82.5) (108.8)
Lease liabilities (£m) (13.5) (16.3)
Net debt (£m) (96.0) (125.1)
Adjusted EBITDA (£m) 96.8 95.5
Net debt to Adjusted EBITDA (ratio) 0.99:1 1.31:1
Committed debt facilities (£m) 180.0 180.0
1. Borrowings are stated net of capitalised loan arrangement fees and
hedging instrument fees of £1.8m as at 30 April 2025 (30 April 2024:
£2.0m).
The Group's debt facilities consist of a £180.0m committed revolving credit
facility which now has a maturity date of 28 February 2029. This reflects the
exercise during the year of a one-year extension option, which was approved by
the lenders. Borrowings are subject to interest at a margin over the reference
interest rate, with margin of 200bps for net leverage of 1.0x or lower and
225bps for net leverage of 1.5x or lower, thereafter stepping up based on a
margin ratchet until it reaches to 300bps for net leverage above 2.5x.
Facility covenants are tested semi-annually and comprise a maximum net debt to
Adjusted EBITDA ratio of 3.0x and minimum Adjusted EBITDA interest cover ratio
of 3.5x.
The Group hedges its interest rate exposure on a rolling basis. As at the
current date, several layered SONIA interest rate cap instruments are in place
with strike rates of between 4.5% and 5.0% on total notional of £50.0m until
31 October 2026. Further details are set out at Note 20.
Capital allocation
In October 2024, we announced a new capital allocation policy, in anticipation
of reaching our 1.0x net leverage target. This framework establishes a clear
hierarchy: investment to support organic growth - including continued
investment in technology development, customer acquisition and operational
automation - remains the highest priority, followed by dividends, then
selective, value-accretive M&A and finally the repurchase of shares where
excess capital is available. Given our organic growth priorities are
appropriately funded and M&A is not currently in contemplation, our
capital allocation focus has shifted to returning excess capital to
shareholders.
Year ended Year ended
30 April 2025 30 April 2024
£m £m
Free Cash Flow(1) 66.1 61.0
Interest and fees paid on borrowings, leases and hedging instruments (8.8) (15.1)
Net repayment of borrowings (23.3) (54.7)
Net repayment of lease liabilities (3.2) (3.7)
Own shares repurchased for cancellation(2) (24.3) -
Dividends paid (3.4) -
Net cash used in financing activities (63.0) (73.6)
Differences on exchange (0.0) (0.2)
Increase/(decrease) in cash and cash equivalents in the year 3.0 (12.8)
1. Free Cash Flow (FCF) is a non-IFRS measure. FCF is defined as net
cash generated from operating activities less net cash used in investing
activities; it excludes proceeds from or payments for mergers and acquisitions
but is not adjusted to exclude bank interest received (as a practical
expedient and for greater consistency with IAS classification of cash flows).
2. The Group repurchased £25.0 million of its own shares for
cancellation. Of this amount, £24.3 million was paid during the year to the
corporate broker managing the share repurchase programme, with £0.7 million
remaining payable as at 30 April 2025.
During FY25, the Company declared its first interim dividend of 1.0 pence. The
Board is recommending a final dividend of 2.0 pence which, if approved at the
2025 AGM, will be paid on 20 November 2025 to shareholders on the register at
the close of business on 24 October 2025. This would result in total dividends
for FY25 of 3.0 pence (FY24: nil), equating to an estimated total dividend
distribution of approximately £10.0m, dependent on issued share capital at
the next record date and representing dividend cover of 5.0x. The Group has
adopted a progressive dividend policy and intends that dividend per share will
grow over time as earnings rise, targeting a cover ratio of 3x to 4x in the
medium-term.
The Group's inaugural share repurchase programme was completed in H2 FY25,
purchasing a total of 11,377,505 (2024: nil) ordinary shares for total
consideration of £25.0m, including transaction costs, of which £24.3m was a
cash outflow in the year with the remainder included in year-end payables
pending settlement. The average effective purchase price was 218.2 pence per
share. All of the purchased shares were subsequently cancelled, with
11,061,434 cancelled as at 30 April 2025 and a further 316,017 shares
transferred to the registrar for cancellation post year-end.
The Group has announced its intention to repurchase up to £60.0m of shares in
FY26, subject to the normal authority to repurchase shares being granted at
the 2025 AGM. The Company's policy is to undertake share repurchases only
where they are EPS enhancing and funded from excess capital. We intend for
FY26 repurchases to be executed through two separate programmes of £30.0m
each, in H1 and H2 respectively. All shares will be cancelled. During FY26 we
intend to transition to settling obligations under employee share plans
through market purchases of shares, subject to the prevailing share price.
Distributable reserves
As at 30 April 2025, the Company balance sheet held distributable reserves of
£559.6m (April 2024: £582.5m), comprising retained earnings and the
share-based payments reserve. The Company's ability to distribute capital
depends on parent company reserves rather than consolidated reserves.
Whilst the consolidated balance sheet shows net liabilities, a key factor
contributing to this is the £993.0m merger reserve - a debit balance in
equity arising from the pre-IPO reorganisation, accounted for under common
control merger accounting. Under this method, the assets and liabilities of
the acquired entities were recognised at their existing carrying amounts
rather than at fair value and no goodwill was recognised. The difference
between the consideration paid and the book value of net assets acquired was
recorded directly in equity within the merger reserve.
This accounting treatment was selected in preference to acquisition accounting
in order to reflect the continuity of ownership and to present the Group's
financial results on a basis that preserved the historical track record of the
underlying trading entities. Had acquisition accounting been applied, the
identifiable net assets would have been remeasured at fair value and a
significant goodwill asset would likely have been recognised, increasing net
assets and potentially resulting in the Group reporting positive net assets.
However, such treatment would not have reflected the substance of a
restructuring within a commonly controlled group.
Outlook for FY26
Since the start of the year, trading across the Group has been in line with
our expectations, including strong Father's Day trading. Moonpig is growing at
double-digit levels and Greetz revenue is in line with the prior year. At
Experiences, we continue to build on recent operational momentum.
For FY26, we expect Group Adjusted EBITDA to grow at a mid-single digit
percentage rate and growth in Adjusted earnings per share at between 8% and
12%, with continued strong free cash flow generation funding ongoing
investment in our growth strategy and consistent returns to shareholders.
With respect to the medium term, we continue to target double-digit revenue
growth, Adjusted EBITDA margin of 25% to 27% and mid-teens growth in Adjusted
EPS.
Technical guidance
Capital expenditure We expect a year-on-year increase in the ratio of capex to revenue. Tangible
and intangible capital expenditure in FY26 and FY27 is expected to sit in the
upper half of our 4% to 5% medium-term target range. In both years, this
includes mid-single digit millions of spend on property, plant and equipment
for planned automation investments at our UK fulfilment centre.
Depreciation and amortisation We expect depreciation and amortisation to be between £20m and £23m in FY26.
This includes the depreciation of tangible fixed assets (including
right-of-use assets) and amortisation of internally generated intangible
assets. It excludes amortisation of acquisition-related intangible assets.
Net finance costs We expect net finance costs to be broadly unchanged year-on-year at
approximately £10m in FY26. This includes around £6m of interest on bank
borrowings and £2m of deemed interest on the Experiences merchant accrual.
The remainder relates to interest on leases and the amortisation of
arrangement fees on debt facilities and hedging instruments. Beyond FY26, and
excluding movements in reference rates, net finance costs are expected to rise
in line with Adjusted EBITDA, as net debt increases to maintain net leverage
of approximately 1.0x.
Taxation We expect an effective tax rate of between 25% and 26% of reported profit
before taxation in FY26 and thereafter. Adjusted taxation charge excludes
credits relating to the unwind of deferred tax liabilities recognised on
acquisition-related intangible assets, consistent with the treatment of the
related acquisition amortisation.
Working capital We expect the Experiences merchant accrual to vary broadly in line with
trading performance at that segment. Other working capital balances are
expected to reflect overall Group revenue growth trends.
Net leverage We expect IFRS 16 net leverage to be approximately 1.0x as at 30 April 2026.
It is likely to be modestly higher at 31 October 2025, reflecting the
second-half weighting of Free Cash Flow and the distribution of capital
returns across the year. The Group targets medium-term net leverage of around
1.0x, with flexibility to move beyond this as business needs require.
Consolidated Income Statement
For the year ended 30 April 2025
2025 2024
Before Adjusting Items Adjusting Items Total Before Adjusting Items Adjusting Items Total
(see Note 6) (see Note 6)
Note £000 £000 £000 £000 £000 £000
Revenue 3 350,068 - 350,068 341,141 - 341,141
Cost of sales 4 (141,497) - (141,497) (138,608) - (138,608)
Gross profit 208,571 - 208,571 202,533 - 202,533
Selling and administrative expenses 5, 6 (132,075) (64,551) (196,626) (125,796) (11,802) (137,598)
Other income 5 1,344 - 1,344 1,349 - 1,349
Operating profit 77,840 (64,551) 13,289 78,086 (11,802) 66,284
Finance income 7 158 - 158 198 - 198
Finance costs 7 (10,489) - (10,489) (20,082) - (20,082)
Profit before taxation 67,509 (64,551) 2,958 58,202 (11,802) 46,400
Taxation 9 (16,015) 1,977 (14,038) (14,616) 2,385 (12,231)
Profit/(loss) after taxation 51,494 (62,574) (11,080) 43,586 (9,417) 34,169
Profit/(loss) attributable to:
Equity holders of the Company 51,494 (62,574) (11,080) 43,586 (9,417) 34,169
Earnings/(loss) per share (pence)
Basic 11 15.0 (18.2) (3.2) 12.7 (2.7) 10.0
Diluted 11 14.5 (17.6) (3.2) 12.3 (2.7) 9.6
All activities relate to continuing operations.
The accompanying notes are an integral part of these condensed consolidated
financial statements.
Consolidated statement of comprehensive income
For the year ended 30 April 2025
2025 2024
Note £000 £000
(Loss)/profit for the year 5 (11,080) 34,169
Items that may be reclassified to profit or loss
Exchange differences on translation of foreign operations (668) 30
Cash flow hedge:
Fair value changes in the year 23 7 715
Cost of hedging reserve 23 95 243
Fair value movements on cash flow hedges transferred to the profit or loss 23 (841) (2,222)
Deferred tax on other comprehensive income 9 185 (95)
Total other comprehensive expense (1,222) (1,329)
Total comprehensive (expense)/income for the year (12,302) 32,840
The accompanying notes are an integral part of these condensed consolidated
financial statements.
Consolidated balance sheet
As at 30 April 2025
2025 2024
Note £000 £000
Non-current assets
Intangible assets 12 137,310 203,591
Property, plant and equipment 13 23,235 26,900
Other non-current assets 15 1,605 1,611
Financial derivatives 23 - 164
162,150 232,266
Current assets
Inventories 14 8,480 7,094
Trade and other receivables 15 5,858 6,577
Current tax receivable 844 2,113
Financial derivatives 23 5 838
Cash and cash equivalents 16 12,649 9,644
27,836 26,266
Total assets 189,986 258,532
Current liabilities
Trade and other payables 17 53,599 51,465
Experiences merchant accrual 40,374 45,274
Provisions for other liabilities and charges 18 2,252 2,073
Current tax payable 3,217 4,211
Contract liabilities 19 5,774 4,008
Lease liabilities 20 3,214 3,257
Borrowings 20 111 73
108,541 110,361
Non-current liabilities
Trade and other payables 17 2,564 1,552
Borrowings 20 94,985 118,292
Lease liabilities 20 10,284 13,072
Deferred tax liabilities 9 4,287 8,903
Provisions for other liabilities and charges 18 2,542 2,516
114,662 144,335
Total liabilities 223,203 254,696
Equity
Share capital 22 33,384 34,331
Share premium 22 278,083 278,083
Merger reserve (993,026) (993,026)
Retained earnings 609,589 642,056
Other reserves 22 38,753 42,392
Total equity (33,217) 3,836
Total equity and liabilities 189,986 258,532
The accompanying notes are an integral part of these condensed consolidated
financial statements.
The condensed consolidated financial statements were approved by the Board of
Directors of Moonpig Group plc (registered number 13096622) on 25 June 2025
and were signed on its behalf by:
Nickyl
Raithatha
Andy MacKinnon
Chief Executive
Officer
Chief Financial Officer
25 June
2025
25 June 2025
Consolidated statement of changes in equity
For the year ended 30 April 2025
Share capital Share premium Merger reserve Retained earnings Other reserves Total equity
Note £000 £000 £000 £000 £000 £000
As at 1 May 2023 34,211 278,083 (993,026) 603,849 43,164 (33,719)
Profit for the year - - - 34,169 - 34,169
Other comprehensive income/(expense):
Exchange differences on translation of foreign operations - - - - 30 30
Cash flow hedges:
Fair value changes in the year - - - - 715 715
Cost of hedging reserve - - - - 243 243
Fair value movements on cash flow hedges transferred to profit and loss - - - - (2,222) (2,222)
Deferred tax on other comprehensive income - - - - (95) (95)
Total comprehensive income for the year - - - 34,169 (1,329) 32,840
Share-based payments 21, 22 - - - - 4,179 4,179
Deferred tax on share-based payment transactions - - - - 536 536
Share options exercised 21, 22 - - - 4,038 (4,158) (120)
Issue of ordinary shares 21, 22 120 - - - - 120
As at 30 April 2024 34,331 278,083 (993,026) 642,056 42,392 3,836
Loss for the year - - - (11,080) - (11,080)
Other comprehensive (expense)/income:
Exchange differences on translation of foreign operations - - - - (668) (668)
Cash flow hedges:
Fair value changes in the year - - - - 7 7
Cost of hedging reserve - - - - 95 95
Fair value movements on cash flow hedges transferred to profit and loss - - - - (841) (841)
Deferred tax on other comprehensive income - - - - 185 185
Total comprehensive income/(expense) for the year - - - (11,080) (1,222) (12,302)
Share-based payments 21, 22 - - - - 1,839 1,839
Deferred tax on share-based payment transactions 9 - - - - 1,773 1,773
Current tax on share-based payment transactions - - - - 32 32
Share options exercised 21, 22 - - - 6,270 (6,429) (159)
Issue of ordinary shares 21, 22 159 - - - - 159
Own shares purchased for cancellation 22 - - - - (25,000) (25,000)
Own shares cancelled 22 (1,106) - - (24,262) 25,368 -
Dividends paid to equity holders 10 - - - (3,395) - (3,395)
As at 30 April 2025 33,384 278,083 (993,026) 609,589 38,753 (33,217)
The accompanying notes are an integral part of these condensed consolidated
financial statements.
Consolidated cash flow statement
For the year ended 30 April 2025
2025 2024
Note £000 £000
Cash flow from operating activities
Profit before taxation 2,958 46,400
Adjustments for:
Depreciation and amortisation 12, 13 26,800 25,729
Impairment of goodwill 6, 12 56,700 -
Loss on disposal of tangible assets - 4
Loss on foreign exchange - 272
Net finance costs 7 10,331 19,884
R&D tax credit (208) (503)
Share-based payment charges 1,839 4,179
Changes in working capital:
(Increase)/decrease in inventories (1,386) 5,192
Decrease in trade and other receivables 724 246
Increase/(decrease) in trade and other payables 4,380 (7,924)
(Decrease) in Experiences merchant accrual (6,753) (8,230)
Net decrease in trade and other receivables and payables with undertakings - 14
formerly under common control
Cash generated from operating activities 95,385 85,263
Income tax paid (16,184) (10,688)
Net cash generated from operating activities 79,201 74,575
Cash flow from investing activities
Capitalisation of intangible assets 12 (11,051) (12,782)
Purchase of property, plant and equipment 13 (2,255) (965)
Bank interest received 158 198
Net cash used in investing activities (13,148) (13,549)
Cash flow from financing activities
Proceeds from new borrowings 20 - 157,266
Payment of fees related to borrowings (400) (2,070)
Repayment of borrowings 20 (23,343) (212,000)
Payment of interest rate cap premium (41) (150)
Interest paid on borrowings 20 (8,508) (14,469)
Interest received on swap and cap derivatives 841 2,222
Lease liabilities paid 20 (3,242) (3,742)
Interest paid on leases 20 (660) (682)
Own shares purchased for cancellation 22 (24,264) -
Dividends paid 10 (3,395) -
Net cash used in financing activities (63,012) (73,625)
Net cash flows generated from/(used in) operating, investing and financing 3,041 (12,599)
activities
Differences on exchange (36) (151)
Increase/(decrease) in cash and cash equivalents in the year 3,005 (12,750)
Net cash and cash equivalents as at 1 May 9,644 22,394
Net cash and cash equivalents as at 30 April 12,649 9,644
The accompanying notes are an integral part of these condensed consolidated
financial statements.
Notes to the condensed consolidated financial statements
1 General information
Moonpig Group plc (the "Company" or "Parent Company") is a public limited
company incorporated in the United Kingdom under the Companies Act 2006, whose
shares are traded on the London Stock Exchange. The condensed consolidated
financial statements of the Company as at and for the year ended 30 April
2025 comprise the Company and its interests in subsidiaries (together referred
to as the "Group"). The Company is domiciled in the United Kingdom and its
registered address is Herbal House, 10 Back Hill, London, EC1R 5EN, England,
United Kingdom. The Company's LEI number is 213800VAYO5KCAXZHK83.
Basis of preparation
The condensed consolidated financial statements of Moonpig Group plc have been
prepared in accordance with UK adopted international accounting standards in
conformity with the requirements of the Companies Act 2006.
All figures presented are rounded to the nearest thousand (£000), unless
otherwise stated.
The condensed consolidated financial statements have been prepared on the
going concern basis and under the historical cost convention modified by
revaluation of financial assets and financial liabilities held at fair value
through profit and loss.
Basis of consolidation
Subsidiaries are entities over which the Group has control. Control exists
when the Group has existing rights that give it the ability to direct the
relevant activities of an entity and has the ability to affect the returns the
Group will receive as a result of its involvement with the entity. In
assessing control, potential voting rights that are currently exercisable or
convertible are taken into account. The financial statements of subsidiaries
are included in the condensed consolidated financial statements from the date
that control commences until the date that control ceases.
Intercompany transactions and balances between Group companies are eliminated
on consolidation.
The financial statements of all subsidiary undertakings are prepared to the
same reporting date as the Company. All subsidiary undertakings have been
consolidated.
The subsidiary undertakings of the Company as at 30 April 2025 are detailed
in Note 26.
Consideration of climate change
In preparing the condensed consolidated financial statements, management has
considered the potential impacts of climate change, in the context of the TCFD
disclosures within the Annual Report and Accounts for the year ended 30 April
2025, in the following areas:
• Going concern and viability of the Group over the next three
years.
• Cash flow forecasts used in the impairment assessments of
non-current assets including goodwill and other intangible assets.
• Carrying amount and useful economic lives of property, plant and
equipment.
As part of our disclosure against the TCFD framework, we have undertaken
quantitative scenario analysis of the Group's two principal transition-related
climate risks which are disclosed within the Annual Report and Accounts for
the year ended 30 April 2025. The risk of carbon taxation has been
incorporated into the sensitivity analysis supporting the viability, going
concern and impairment assessments. The risk of shifting consumer sentiment
has not been modelled due to the significant uncertainty surrounding
behavioural and market response assumptions. These uncertainties make any
attempt to quantify a specific financial impact highly speculative and no such
estimate can be meaningfully determined at this stage.
Going concern
The Group's business activities, together with the factors likely to affect
its future development, performance and position, are set out in the Strategic
report of the Annual Report and Accounts for the year ended 30 April 2025.
The Group has continued to generate positive operating cash flow and finished
the year with liquidity headroom of £95,816,000 (2024: £69,378,000)
comprising gross cash and unutilised committed facilities.
The Group's debt facilities consist of a £180,000,000 committed revolving
credit facility (the "RCF"), which now has a maturity date of 28 February
2029. This reflects the exercise during the year of a one-year extension
option, which was subsequently approved by the lenders. Amounts drawn under
the RCF bear interest at a floating reference rate plus a margin. The
reference rates are SONIA for loans in Sterling, EURIBOR for loans in Euros
and SOFR for loans in US Dollars. As at 30 April 2025 the Group had drawn
down £93,000,000 and €4,500,000 of the available revolving credit facility
(2024: £113,000,000 and €8,500,000).
The Group hedges its interest rate exposure on a rolling basis. As at the
current date, several layered SONIA interest rate cap instruments are in place
with strike rates of between 4.5% and 5.0% on total notional of £50.0m until
31 October 2026. Further details are set out at Note 20.
The RCF is subject to two covenants, each tested at six-monthly intervals. The
leverage covenant, measuring the ratio of net debt to last twelve months
Adjusted EBITDA (excluding share-based payments, as specified in the
facilities agreement), is a maximum of 3.0x for the remaining term of the
facility. The interest cover covenant, measuring the ratio of last twelve
months Adjusted EBITDA (excluding share-based payments, as specified in the
facilities agreement) to the total of bank interest payable and interest
payable on leases, is a minimum of 3.5x for the term of the facility. The
Group has complied with all covenants from entering the RCF until the date of
these condensed consolidated financial statements and is forecast to comply
with these during the going concern assessment period.
To support the Group's assessment of going concern, detailed trading and cash
flow forecasts, including forecast liquidity and covenant compliance, were
prepared for the 24-month period to 30 April 2027.
The Directors have also reviewed the severe but plausible scenario described
within the viability statement of the Annual Report and Accounts for the year
ended 30 April 2025 in relation to the most severe of the two scenarios
modelled. In this scenario, the Group continues to have sufficient resources
to continue in operational existence. In the event that more severe impacts
occur, controllable mitigating actions are available to the Group should they
be required.
The Directors also reviewed the results of reverse stress testing performed
throughout the going concern and viability periods, to provide
an illustration of the extent to which existing customer purchase frequency
and levels of new customer acquisition would need to deteriorate in order that
their cumulative effect should either trigger a breach in the Group's
covenants under the RCF or else exhaust liquidity. The probability of this
scenario occurring was deemed to be remote given the resilient nature of the
business model and strong cash conversion of the Group.
After making enquiries, the Directors have a reasonable expectation that the
Group has adequate resources to continue in operational existence for at least
12 months from the date of signing these condensed consolidated financial
statements. Accordingly, they continue to adopt the going concern basis in
preparing these condensed consolidated financial statements, in accordance
with those parts of the Companies Act 2006 applicable to companies reporting
under IFRS.
Critical accounting judgements and estimates
In preparing these condensed consolidated financial statements, management has
made judgements and estimates that affect the application of the accounting
policies and the reported amounts of assets, liabilities, income and expenses.
Actual results may differ from these estimates. Estimates and underlying
assumptions are reviewed on an ongoing basis. Revisions to estimates are
recognised prospectively.
The areas of judgement which have the greatest potential effect on the amounts
recognised in the condensed consolidated financial statements are:
Capitalisation of internally generated assets
Certain costs incurred in the developmental phase of an internal project,
which include the development of technology, app and platform enhancements and
internally generated software and trademarks, are capitalised as intangible
assets if a number of criteria are met. The costs of internally developed
assets include capitalised expenses of employees working full time on software
development projects, third-party firms and software licence fees. Management
has made judgements and assumptions when assessing whether development meets
these criteria and on measuring the costs attributed to such projects. The
amounts of and movements in, such assets are set out in Note 12.
Useful life of internally generated assets
The estimated useful lives which are used to calculate amortisation of
internally generated assets (the Group's platforms and applications) are based
on the length of time these assets are expected to generate income and be of
benefit to the Group. The uncertainty included in this estimate is that if the
useful lives are estimated to differ from the actual useful lives of the
intangible assets, this could result in accelerated amortisation in future
years and/or impairments. The economic lives of internally generated
intangible assets are estimated at three years. Amortisation methods, useful
lives and residual values are reviewed at each reporting date and adjusted if
appropriate. If the useful life of internally generated assets were estimated
to be shorter or longer by one year, than the current useful life of three
years, the net book value would (decrease)/increase by
£(6,320,000)/£5,589,000 from the amount recognised as at 30 April 2025. The
amounts of and movements in, such assets are set out in Note 12.
Experiences merchant accrual
At Experiences, which acts as an agent at the point of sale, the merchant
accrual has been identified as a significant estimate. When a voucher is
purchased, the expected value of future amounts that will become payable to
merchant providers is recognised on the balance sheet. The Group takes into
account historical redemption rates when estimating future payments to
merchant providers, with the span between the upper and the lower ends of the
range in historical trends for these rates equivalent to a £3,119,000
movement in the amount recognised in revenue. The estimates are trued up for
actual customer utilisation rates in the year.
Carrying amount of Experiences goodwill
Goodwill is tested annually for impairment. The critical accounting estimates
made in the calculation of the recoverable amount are:
• Pre-perpetuity compound annual revenue growth rate of 2.7% (2024:
6.6%).
• Discount rate of 13.5% (2024: 15.1%).
Sensitivity analysis and further disclosure relating to these critical
accounting estimates is set out in Note 12.
2 Summary of significant accounting policies
New standards, amendments and interpretations adopted from 1 May 2024
The following amendments are effective for the year beginning 1 May 2024:
• IFRS 16 Leases (Amendment - Liability in a Sale and
Leaseback).
• IAS 1 Presentation of Financial Statements (Amendment -
Classification of Liabilities as Current or Non-current).
• IAS 1 Presentation of Financial Statements (Amendment -
Non-current Liabilities with Covenants).
These amendments to various IFRS standards are mandatorily effective for
reporting periods beginning on or after 1 May 2024 and had no material impact
on the year-end condensed consolidated financial statements of the Group.
New standards, amendments and interpretations not yet adopted
The following adopted IFRSs have been issued but have not been applied by the
Group in these condensed consolidated financial statements. Their adoption is
not expected to have material effect on the condensed consolidated financial
statements unless otherwise indicated:
The following amendments are effective for the year beginning 1 May 2025:
• Lack of Exchangeability (Amendments to IAS 21 The Effects of
Changes in Foreign Exchange rates)
The following amendments are effective for the year beginning 1 May 2026:
• Amendments to the Classification and Measurement of Financial
Instruments (Amendments to IFRS 9 Financial Instruments and IFRS 7)
The following amendments are effective for the year beginning 1 May 2027:
• IFRS 18 Presentation and Disclosure in the Financial
Statements.
The Group is currently assessing the effect of these new accounting standards
and amendments.
The principal accounting policies are set out below. Policies have been
applied consistently, other than where new policies have been applied.
a) Foreign currency translation
The condensed consolidated financial statements are presented in Sterling,
which is the Group's presentational currency and are rounded to the nearest
thousand. The income and cash flow statements of Group undertakings that are
expressed in other currencies are translated to Sterling using exchange rates
applicable on the dates of the underlying transactions. Average rates of
exchange in each year are used where the average rate approximates the
relevant exchange rate on the date of the underlying transactions. Assets and
liabilities of Group undertakings are translated at the applicable rates of
exchange at the end of each year.
The differences between retained profits translated at average and closing
rates of exchange are taken to the foreign currency translation reserve, as
are differences arising on the retranslation to Sterling (using closing rates
of exchange) of overseas net assets at the beginning of the year and are
presented as a separate component of equity. They are recognised in the income
statement when the gain or loss on disposal of a Group undertaking is
recognised.
Foreign currency transactions are initially recognised in the functional
currency of each entity in the Group using the exchange rate ruling at the
date of the transaction. Foreign exchange gains and losses resulting from the
settlement of such transactions and from the translation of foreign currency
assets and liabilities at year-end rates of exchange are recognised in the
income statement. Foreign exchange gains or losses recognised in the income
statement are included in operating profit or finance costs / income depending
on the underlying transactions that gave rise to these exchange differences.
b) Revenue
The Group recognises revenue when it has satisfied its performance obligations
to external customers and control of the goods has been transferred. The Group
is principally engaged in the sale of greeting cards, physical gifts and gift
experiences.
i) Sale of greeting cards and physical gifts
The Group generates revenue from the sale of greeting cards and physical
gifts. Shipping and handling is not a separate performance obligation and any
shipping fees charged to the customer are included in the transaction price.
The sale of goods and any shipping and handling represents a single
performance obligation which is satisfied upon delivery of the relevant goods
and the transfer of control to that customer. Revenue is measured at the
transaction price received net of value added tax and discounts and is reduced
for provisions of customer returns and remakes based on the history of such
matters. The cost of shipping is directly associated with generating revenue
and therefore presented within cost of sales.
ii) Subscription revenue
The Group operates subscription membership schemes whereby customers are
charged an upfront annual fee in return for discounts on subsequent greeting
card purchases and other ancillary benefits over the following 12-month
period. In addition, for new members, the initial greeting card purchase is
typically subject to a discount.
Revenue is measured at the transaction price, which is the standalone selling
price of the subscription membership. The membership contract gives rise to a
performance obligation because it grants the customer an option to acquire
additional goods and services and that option provides material rights that
the customer would not receive without entering that contract. Revenue is
recognised as goods or services are transferred in line with the exercise of
those material rights.
The material rights provided to subscription members currently comprise:
• The discount on the initial greeting card purchase, in the first
year of subscription membership only, to the extent that this exceeds the
price that a customer could access through generally available discounts.
• Expected usage of the discount on subsequent card purchases, to
the extent that this exceeds the price that a customer could otherwise access
through generally available discounts.
• Expected usage of ancillary benefits, such as free postcards.
iii) Sale of gift experiences
The Group operates a platform for the distribution of gift experience vouchers
that may be redeemed for a wide choice of experiences provided by third-party
merchant partners and either gifted or kept for a consumer's own use. Revenue
is recognised when a consumer purchases a gift experience, acting as an agent
at the point of sale. At this point, the Group's obligations are substantially
complete, subject to a provision for refunds as stipulated in the terms of the
sale, as the Group's merchant partners provide gift experience services,
following redemption either through the Group's websites or directly with the
recipient's chosen merchant partner.
The amount of revenue recognised primarily comprises the expected value of
fees and any other income receivable in accordance with the Group's contracts
with third-party merchant partners, rather than the gross value of vouchers
purchased. This includes an estimate of the revenue to be recognised in
relation to vouchers which are not redeemed based on historical rates.
Each voucher is multi-purpose and can be exchanged for any experience at any
point until redemption, on account of which merchants are not paid a share of
the gross value of a voucher until after redemption. The expected value of
future amounts that will become payable to merchants is included within
Experiences merchant accrual on the balance sheet and estimates are trued up
for actual customer redemption rates. See further information within critical
accounting estimates below. Where non-redemption exceeds the expected rate for
a cohort of vouchers, the Group recognises revenue from the additional
unredeemed vouchers and derecognises the accrued merchant payable once its
legal obligations to the merchants expire.
c) Supplier income
The Group enters into agreements with suppliers to share the costs and
benefits of promotional activity and volume growth. The Group receives income
from its suppliers based on specific agreements in place. Supplier income
received is recognised as a deduction to costs of sales and directly affects
the Group's reported margin. Marketing income earned from suppliers in return
for media space is not included in the Group's definition of supplier income.
The types of supplier income recognised by the Group and the associated
recognition policies are:
i) Promotional contributions
Includes supplier contributions to promotional giveaways and other supplier
funded promotional activity. Income is recognised as a deduction to cost of
sales over the relevant promotional period. Income is calculated and invoiced
at the end of the promotion period based on actual sales or according to fixed
contribution arrangements. Contributions earned, but not invoiced, are accrued
at the end of the relevant period and recognised within trade and other
receivables.
ii) Volume-based rebates
Includes annual growth incentives and seasonal contributions. Annual growth
incentives are calculated and invoiced at the end of the financial year, once
earned, based on fixed percentage growth targets agreed for each supplier at
the beginning of the year. They are recognised as a reduction in cost of sales
in the year to which they related. Other volume-based rebates are agreed with
the supplier and spread over the contract period to which they relate.
Contributions earned, but not invoiced, are accrued at the end of the relevant
periods. The uncollected amounts accrued are recognised in trade and other
payables net against amounts owed to that supplier as the Group has the legal
right and intention to offset these balances.
d) Taxation
Taxation is chargeable on the profits for the year, together with deferred
taxation.
The current income tax charge is calculated on the basis of tax laws enacted
or substantively enacted at the balance sheet date in the countries where the
Group's subsidiaries operate and generate taxable income.
Deferred taxation is provided in full using the liability method for temporary
differences between the carrying amount of assets and liabilities for
financial reporting purposes and the amount used for taxation purposes. A
deferred tax asset is recognised only to the extent that it is probable that
future taxable profits will be available against which the asset can be
utilised.
Deferred tax is determined using the tax rates that have been enacted or
substantively enacted by the balance sheet date and are expected to apply when
the related deferred tax asset is realised, or deferred tax liability is
settled. Deferred tax relating to items recognised outside of profit or loss
is also recognised outside profit or loss. Deferred tax items are recognised
in correlation to the underlying transaction either in other comprehensive
income or directly in equity. Deferred tax assets and liabilities are offset
if a legally enforceable right exists to set off current tax assets against
current income tax liabilities and the deferred taxes relate to the same
taxable entity and the same taxation authority.
Tax is recognised in the income statement except to the extent that it relates
to items recognised in other comprehensive income or directly in equity, in
which case it is recognised in the statement of other comprehensive income or
the statement of changes in equity.
e) Business combinations
Business combinations are accounted for using the acquisition method. The cost
of an acquisition is measured as the aggregate of the consideration
transferred which is measured at the acquisition date. The acquiree's
identifiable assets, liabilities and contingent liabilities that meet the
conditions for recognition under IFRS 3 Business Combinations are recognised
at their fair values at the acquisition date.
Acquisition-related items such as legal or professional fees are recognised as
expenses in the year in which the costs are incurred as Adjusting Items.
f) Goodwill
Goodwill arising on the acquisition of an entity represents the excess of the
cost of acquisition over the Group's interest in the net fair value of the
identifiable assets, liabilities and contingent liabilities of the entity
recognised at the date of acquisition. Goodwill relates to the Greetz and
Experiences cash-generating units.
Goodwill is initially recognised as an asset at cost and is subsequently
measured at cost less any accumulated impairment losses. Goodwill is not
subject to amortisation but is tested for impairment annually or whenever
there is evidence that it may be required. Any impairment of goodwill is
recognised immediately in the income statement and is not subsequently
reversed. Goodwill is denominated in the currency of the acquired entity and
revalued to the closing exchange rate at each reporting year date.
Goodwill in respect of subsidiaries is included in intangible assets. On
disposal of a subsidiary, the attributable amount of goodwill is included in
the determination of the profit or loss on disposal.
g) Intangible assets other than goodwill
i) Separately acquired intangible assets
Intangible assets acquired separately are measured on initial recognition at
fair value at the acquisition date, provided they are identifiable and capable
of reliable measurement.
Intangible assets with a finite useful life that are acquired separately are
carried at cost less accumulated amortisation and impairment losses. These
intangible assets are amortised on a straight-line basis over their remaining
useful lives, consistent with the pattern of economic benefits expected to be
received. The amortisation charge is included within selling and
administrative expenses in the income statement.
ii) Internally generated research and development costs
Research expenditure is charged to the income statement in the year in which
it is incurred. Development expenditure is charged to the income statement in
the year it is incurred unless it meets the recognition criteria of IAS 38
Intangible Assets to be capitalised as an intangible asset.
Following initial recognition of the development expenditure as an asset, the
asset is carried at cost less any accumulated amortisation and impairment
losses. Amortisation begins when development is complete and the asset is
available for use; the charge is included within selling and administrative
expenses in the income statement. The estimated useful lives of separately
acquired and internally generated assets are as follows:
Straight-line amortisation period
Trademark 10 years
Technology and development costs 3 years
Customer relationships 1 to 12 years
Software 3 to 5 years
Other intangibles 2 to 4 years
h) Impairment of non-financial assets
Assets are reviewed for impairment whenever events indicate that the carrying
amount of a cash-generating unit or the carrying amounts of non-financial
assets may not be recoverable. In addition, assets that have indefinite useful
lives are tested annually for impairment. An impairment loss is recognised to
the extent that the carrying amount exceeds the higher of the asset's fair
value less costs to sell and its value in use.
A cash-generating unit is the smallest identifiable group of assets that
generates cash flows which are largely independent of the cash flows from
other assets or groups of assets. At the acquisition date, any goodwill
acquired is allocated to the relevant cash-generating unit or group of
cash-generating units expected to benefit from the acquisition for the purpose
of impairment testing of goodwill.
i) Impairment of financial assets held at amortised cost
As permitted by IFRS 9 Financial Instruments, loss allowances on trade
receivables arising from the recognition of revenue under IFRS 15 Revenue from
Contracts with Customers are initially measured at an amount equal to lifetime
expected losses. Allowances in respect of loans and other receivables are
initially recognised at an amount equal to 12-month expected credit losses.
Allowances are measured at an amount equal to the lifetime expected credit
losses where the credit risk on the receivables increases significantly after
initial recognition.
j) Property, plant and equipment
Property, plant and equipment are stated at cost less accumulated depreciation
and impairment. Depreciation is calculated on a straight-line basis to write
off the assets over their useful economic life. No depreciation is provided on
freehold land. The estimated useful lives are as follows:
Straight-line depreciation period
Freehold property 25 years
Plant and machinery 4 years
Fixtures and fittings 4 years
Leasehold improvements 10 years or the unexpired term of lease if lower
Computer equipment 3 years
Right-of-use assets (plant and machinery, land and buildings) Lease length
Climate change is not considered to materially impact the estimated useful
lives of assets. Although extreme weather events could potentially damage
manufacturing and distribution facilities, the probability of this occurring
at the Group's most vulnerable location, Guernsey, is only 0.2% annually over
the expected lifespan of the assets. Furthermore, the Group has flexibility in
its production network and could shift production to other locations to
mitigate any business interruptions.
k) Leased assets
Group as lessee
The Group records its lease obligations in accordance with the principles for
the recognition, measurement, presentation and disclosures of leases as set
out in IFRS 16. The Group applies IFRS 16 Leases to contractual arrangements
which are, or contain, leases of assets and consequently recognises
right-of-use assets and lease liabilities at the commencement of the leasing
arrangement, with the asset included in Note 13 and the liabilities included
as part of borrowings in Note 20. The nature of the Group's leases are
offices, warehouses and printing machinery.
Lease liabilities are initially recognised at an amount equal to the present
value of estimated contractual lease payments at the inception of the lease,
after taking into account any options to extend the term of the lease to the
extent they are reasonably certain to be exercised. Lease commitments are
discounted to present value using the interest rate implicit in the lease if
this can be readily determined, or the applicable incremental rate of
borrowing, as appropriate. Right-of-use assets are initially recognised at an
amount equal to the lease liability, adjusted for initial direct costs in
relation to the assets, then depreciated over the shorter of the lease term
and their estimated useful lives.
The Group applies the recognition exemption for leases of low value and
short-term leases of 12 months. These leases are not recognised on the
balance sheet but expensed to the income statement on a straight-line basis
over the lease term.
Group as lessor
The Group has entered into a sublease agreement as a lessor with respect to
part of one of its leasehold properties. This is accounted for as an
operating lease as the lease does not transfer substantially all the risks and
rewards of ownership to the lessee.
When the Group is an intermediate lessor, it accounts for the head lease and
the sublease as two separate contracts. The sublease is classified as a
finance or operating lease by reference to the right-of-use asset arising from
the head lease.
Rental income from operating leases is recognised on a straight-line basis
over the term of the relevant lease. Initial direct costs incurred in
negotiating and arranging an operating lease are added to the carrying amount
of the leased asset and recognised on a straight-line basis over the lease
term.
l) Inventories
Inventories include raw materials and finished goods and are stated at the
lower of cost and net realisable value. Cost is based on the weighted average
cost incurred in acquiring inventories and bringing them to their existing
location and condition, which will include raw materials, direct labour and
overheads, where appropriate.
m) Cash and cash equivalents
Cash and cash equivalents comprise cash in hand, call deposits, cash held by
payment service providers and other short-term highly liquid investments that
are readily convertible to a known amount of cash and are subject to an
insignificant risk of changes in value, with a maturity of three months or
less. Cash equivalents relate to cash in transit from various payment
processing intermediaries that provide receipting services to the Group.
For the purposes of the consolidated cash flow statement, cash and cash
equivalents consist of cash and short-term deposits as defined above and are
shown net of bank overdrafts, which are included as current borrowings in the
liabilities section on the balance sheet.
n) Financial instruments
The primary objective with regard to the management of cash of the Group's
business model for managing financial assets is to protect against the loss of
principal. Additionally, the Group aims to maximise liquidity by concentrating
cash centrally; to align the maturity profile of external investments with
that of the forecast liquidity profile; to wherever practicable, match the
interest rate profile of external investments to that of debt maturities or
fixings; and to optimise the investment yield within the Group's investment
parameters.
Financial assets and liabilities are recognised when the Group becomes a party
to the contractual provisions of the relevant instrument and derecognised when
it ceases to be a party. Such assets and liabilities are classified as current
if they are expected to be realised or settled within 12 months after the
balance sheet date. If not, they are classified as non-current. In addition,
current liabilities include amounts where the entity does not have an
unconditional right to defer settlement of the liability for at least 12
months after the balance sheet date.
Non-derivative financial assets are classified on initial recognition in
accordance with the Group's business model as investments, loans and
receivables, or cash and cash equivalents and accounted for as follows:
• Loans and other receivables: These are non-derivative financial
assets with fixed or determinable payments that are solely payments
of principal and interest on the principal amount outstanding, that are
primarily held in order to collect contractual cash flows. These balances
include trade and other receivables and are measured at amortised cost, using
the effective interest rate method and stated net of allowances for credit
losses.
• Cash and cash equivalents: Cash and cash equivalents include cash
in hand and deposits held on call. Cash equivalents normally comprise
instruments with maturities of three months or less at their date of
acquisition. In the cash flow statement, cash and cash equivalents are shown
net of bank overdrafts, which are included as current borrowings in the
liabilities section on the balance sheet.
Non-derivative financial liabilities, including borrowings and trade payables,
are stated at amortised cost using the effective interest method. For
borrowings, their carrying amount includes accrued interest payable. The
effective interest method takes into account both the contractual cash flows
and the time value of money. The carrying amount of the financial liability is
adjusted over time to reflect the unwinding of the discount, whereby the
discount represents the difference between the initial fair value and the
amount paid or received. The discounting process involves applying a discount
rate to the future cash flows associated with the financial liability. The
effect of discounting is recognised as an interest expense in the profit and
loss over the expected term of the financial liability.
Derivative financial instruments are used to manage risks arising from changes
in interest rates relating to the Group's external debt. The Group does not
hold or issue derivative financial instruments for trading purposes. The Group
uses the derivatives to hedge highly probable forecast transactions and
therefore, the instruments are designated as cash flow hedges.
Derivatives are initially recognised at fair value on the date a contract is
entered into and are subsequently remeasured at their fair value at each
reporting date. At inception of designated hedging relationships, the Group
documents the risk management objective and strategy for undertaking the
hedge. The Group also documents the economic relationship between the hedged
item and the hedging instrument, including whether the changes in the cash
flows of the hedged item and hedging instrument are expected to offset each
other.
The effective element of any gain or loss from remeasuring the derivative
instrument is recognised in other comprehensive income (OCI) and accumulated
in the hedging reserve (presented in "other reserves" in the statement of
changes in equity). Any change in the fair value of time value of the
derivative instrument is also recognised in OCI as part of cash flow hedges
and accumulated in the cost of hedging reserve (presented in "other Reserves"
in the statement of changes in equity). Any element of the remeasurement of
the derivative instrument that does not meet the criteria for an effective
hedge is recognised immediately in the Group income statement within finance
costs.
When a hedging instrument expires or is sold, or when a hedge no longer meets
the criteria for hedge accounting, any cumulative gain or loss existing in
OCI at that time remains in OCI and is recognised when the forecast
transaction is ultimately recognised in the income statement within finance
costs. When a forecast transaction is no longer expected to occur, the
cumulative gain or loss that was reported in OCI is recycled to the income
statement. The full fair value of a hedging derivative is classified as a
non-current asset or liability if the remaining maturity of the hedged item is
more than 12 months or, as a current asset or liability, if the remaining
maturity of the hedged item is less than 12 months.
o) Segmental analysis
The Group is organised and managed based on its segments (Moonpig, Greetz and
Experiences). These are the reportable and operating segments for the Group as
they form the focus of the Group's internal reporting systems and are the
basis used by the chief operating decision maker (CODM), identified as the
CEO and CFO, for assessing performance and allocating resources. The prices
agreed between Group companies for intra-group services and fees are based on
normal commercial practices which would apply between independent businesses.
p) Provisions
Provisions are recognised when either a legal or constructive obligation as a
result of a past event exists at the balance sheet date, it is probable that
an outflow of economic resources will be required to settle the obligation and
a reasonable estimate can be made of the amount of the obligation.
q) Pensions and other post-employment benefits
The Group contributes to defined contribution pensions schemes and payments to
these are charged as an expense and accrued over time.
r) Adjusting Items
Adjusting Items are significant items of income or expense which individually
or, if of a similar type, in aggregate, are relevant to an understanding of
the Group's underlying financial performance because of their size, nature or
incidence. In identifying and quantifying Adjusting Items, the Group
consistently applies a policy that defines criteria that are required to be
met for an item to be classified as an Adjusting Item. These items are
separately disclosed in the segmental analyses or in the notes to the
condensed consolidated financial statements as appropriate.
The Group believes that these items are useful to users of the condensed
consolidated financial statements in helping them to understand the underlying
business performance and are used to derive the Group's principal non-GAAP
measures of Adjusted EBITDA, Adjusted EBIT, Adjusted PBT and Adjusted EPS,
which exclude the impact of Adjusting Items and which are reconciled from
operating profit, profit before taxation and earnings per share.
s) Equity
Called-up share capital
Ordinary shares are classified as equity. Incremental costs directly
attributable to the issue of new shares are shown in equity as a deduction
from the proceeds.
Share premium
The amount subscribed for the ordinary shares in excess of the nominal value
of these new shares is recorded in share premium. Costs that directly relate
to the issue of ordinary shares are deducted from share premium net of
corporation tax.
Merger reserve
The merger reserve of £993,026,000 arose as a result of the Group
reorganisation undertaken prior to the Company's listing on the London Stock
Exchange. This reorganisation was accounted for using common control merger
accounting. Under this method, the assets and liabilities of the acquired
entities were recognised at their existing carrying amounts rather than at
fair value and no goodwill was recognised. The difference between the
consideration paid and the book value of net assets acquired was recorded
directly in equity within the merger reserve.
This accounting treatment was selected in preference to acquisition accounting
in order to reflect the continuity of ownership and to present the Group's
financial results on a basis that preserved the historical track record of the
underlying trading entities. Had acquisition accounting been applied, the
identifiable net assets would have been remeasured at fair value and a
significant goodwill asset would likely have been recognised, increasing net
assets and potentially resulting in the Group reporting positive net assets.
However, such treatment would not have reflected the substance of a
restructuring within a commonly controlled group.
The adoption of common control merger accounting has resulted in the
recognition of a significant merger reserve on consolidation. The merger
reserve is a debit balance within equity arising from the application of
merger accounting and is a significant contributor to the Group's reported net
liabilities position.
Other reserves
Share-based payment reserve
The share-based payment reserve is built up of charges in relation to
equity-settled share-based payment arrangements which have been recognised
within the consolidated income statement. Upon the exercise of share options
the cumulative amount recognised in the share-based payment reserve is
recycled to retained earnings, reflecting the transfer of value to the equity
of the Company.
Hedging reserve
The hedging reserve comprises the effective portion of the cumulative net
change in the fair value of cash flow hedging instruments related to hedged
transactions that have not yet occurred and the cumulative net change in the
fair value of time value on the cash flow hedging instruments.
Foreign currency translation reserve
The foreign currency translation reserve represents the accumulated exchange
differences arising since the acquisition of Greetz from the impact of the
translation of subsidiaries with a functional currency other than Sterling.
Own shares held reserve
The own shares held reserve represents the equity account used to record the
cost of the Company's own shares that have been repurchased. These shares are
not considered outstanding for the purposes of calculating earnings per share
and do not carry voting rights or the right to receive dividends while held by
the Company. Shares purchased for cancellation are included in the own shares
held reserve until cancellation, at which point the consideration is
transferred to retained earnings and the nominal value of the shares is
transferred from share capital to the capital redemption reserve.
Capital redemption reserve
The capital redemption reserve reflects the nominal amount of shares bought
back and cancelled.
t) Dividends
Dividend distribution to the Company's shareholders is recognised as a
liability in the Group's condensed consolidated financial statements in the
period in which the dividend is approved by the Company's shareholders in
the case of final dividends, or the date at which they are declared in the
case of interim dividends.
u) Earnings per share
The Group presents basic and diluted EPS for its ordinary shares. Basic EPS is
calculated by dividing the profit attributable to ordinary shareholders by the
weighted average number of ordinary shares outstanding during the year. For
diluted EPS, the weighted average number of ordinary shares is adjusted to
assume conversion of all dilutive potential ordinary shares.
v) Share-based payments
The Group has equity-settled compensation plans.
Equity-settled share-based payments are measured at fair value at the date of
grant. The fair value determined at the grant date of the equity-settled
share-based payments is expensed over the vesting period, based on the Group's
estimate of awards that will eventually vest. For plans where the vesting
conditions are based on a market condition, such as total shareholder return,
the fair value at date of grant reflects the probability that this condition
will not be met and therefore is fixed thereafter irrespective of actual
vesting.
Fair value is measured using the Black-Scholes and Monte Carlo option pricing
model, except where vesting is subject to market conditions when the
Stochastic option pricing model is used. A Chaffe model is used to value the
holding period. The expected term used in the models has been adjusted based
on management's best estimate, for the effects of non-transferability,
exercise restrictions and behavioural considerations.
3 Segmental analysis
The CODM reviews external revenue, gross profit, Adjusted EBITDA and Adjusted
EBIT to evaluate segment performance and allocate resources to the overall
business. Adjusted EBITDA and Adjusted EBIT are non-GAAP measures. Adjustments
are made to the statutory IFRS results to arrive at an underlying result which
is in line with how the business is managed and measured on a day-to-day
basis. Adjustments are made for items that are individually important in order
to understand the financial performance. If included, these items could
distort understanding of the performance for the year and the comparability
between periods. Management applies judgement in determining which items
should be excluded from underlying performance. See Note 6 for details of
these adjustments.
The Group is organised and managed based on its segments, namely Moonpig (UK,
Ireland, Australia and the US), Greetz (Netherlands) and Experiences (UK).
These are the reportable and operating segments for the Group as they form the
focus of the Group's internal reporting systems and are the basis used by the
CODM for assessing performance and allocating resources.
Most of the Group's revenue is derived from the sale of cards, gifts and
related services to consumers, or from the distribution of gift experiences
acting as agent. No single customer accounted for 10% or more of the Group's
revenue.
Finance income and expense are not allocated to the reportable segments, as
this activity is managed centrally.
Revenue and trading profit are subject to seasonality and are weighted towards
the second half of the year which includes the key peak periods for the
business.
Segmental analysis
The following table shows revenue by segment that reconciles to the
consolidated revenue for the Group.
2025 2024
£000 £000
Moonpig 262,000 241,326
Greetz 48,854 51,238
Experiences 39,214 48,577
Total external revenue 350,068 341,141
The following table shows revenue by key geography that reconciles to the
consolidated revenue for the Group. The geographical split of revenue is based
on the customer's country selection on the website or app at the time of
order:
2025 2024
£000 £000
UK 289,392 281,217
Netherlands 48,854 51,238
Ireland 4,781 3,899
US 2,169 1,352
Australia 4,872 3,435
Total external revenue 350,068 341,141
The consolidated revenue for the Group was made up as follows:
2025 2024
£000 £000
Recognised at a point in time 343,949 338,078
Recognised over time 6,119 3,063
Total external revenue 350,068 341,141
The Group's measure of segment profit and Adjusted EBIT, excludes Adjusting
Items; refer to the APMs section of the Annual Report and Accounts for the
year ended 30 April 2025 for calculation.
2025 2024
£000 £000
Moonpig 149,232 133,275
Greetz 22,537 24,132
Experiences 36,802 45,126
Group gross profit 208,571 202,533
Moonpig 81,869 72,709
Greetz 6,456 7,815
Experiences 8,464 15,006
Group Adjusted EBITDA 96,789 95,530
Moonpig 15,060 14,498
Greetz(1) 1,606 1,884
Experiences(1) 2,283 1,062
Group depreciation and amortisation excluding amortisation on acquired 18,949 17,444
intangibles(1)
Moonpig 66,809 58,211
Greetz(1) 4,850 5,931
Experiences(1) 6,181 13,944
Group Adjusted EBIT(1) 77,840 78,086
1. Excludes amortisation arising on Group consolidation of
intangibles, which is classified as an Adjusting Item - see Note 6.
The following table shows Adjusted EBITDA and Adjusted EBIT that reconciles to
the consolidated results of the Group.
2025 2024
Note £000 £000
Adjusted EBITDA 96,789 95,530
Depreciation and amortisation(1) (18,949) (17,444)
Adjusted EBIT 77,840 78,086
Adjusting items 6 (64,551) (11,802)
Operating profit 13,289 66,284
Finance income 7 158 198
Finance costs 7 (10,489) (20,082)
Profit before taxation 2,958 46,400
Taxation charge 9 (14,038) (12,231)
(Loss)/profit for the year (11,080) 34,169
1. Depreciation and amortisation excludes amortisation on acquired
intangibles of £7,851,000 (2024: £8,285,000) included in Adjusting Items,
see Note 6 for more information.
The following table shows the information regarding assets by segment that
reconciles to the consolidated Group.
2025 2024
£000 £000
Moonpig
Non-current assets(1) 31,632 37,075
Capital expenditure(2) (1,816) (786)
Intangible expenditure (7,968) (9,534)
Depreciation and amortisation (15,060) (14,498)
Greetz
Non-current assets(1) 20,480 22,984
Capital expenditure(2) (537) (156)
Intangible expenditure (17) -
Depreciation and amortisation (3,359) (3,679)
Experiences
Non-current assets(1) 108,433 170,433
Capital expenditure(2) (13) (23)
Intangible expenditure (3,066) (3,248)
Depreciation and amortisation (8,381) (7,552)
Impairment of goodwill (see Note 12) (56,700) -
Group
Non-current assets(1) 160,545 230,492
Capital expenditure(2) (2,366) (965)
Intangible expenditure (11,051) (12,782)
Depreciation and amortisation (26,800) (25,729)
Impairment of goodwill (see Note 12) (56,700) -
1. Comprises intangible assets and property, plant and equipment
(inclusive of ROU assets).
2. Includes ROU assets capitalised in each year.
4 Cost of Sales
Re-presented
2025 2024
£000 £000
Wages and salaries (7,233) (7,972)
Inventories (50,236) (48,088)
Shipping and logistics (80,616) (79,084)
Depreciation on warehouses and machinery (3,412) (3,464)
Total cost of sales (141,497) (138,608)
1. In the prior year an amount of £5,778,000 has been reclassified
from wages and salaries to shipping and logistics. This amount relates to the
labour cost portion of the Group's third-party fulfilment costs.
5 Operating profit
Nature of expenses charged/(credited) to operating profit from continuing
operations:
2025 2024
£000 £000
Depreciation on property, plant and equipment (6,246) (6,610)
Amortisation of intangible fixed assets(1) (20,554) (19,119)
IPO-related bonuses - (2,367)
Share-based payment charges (excluding National Insurance) (1,839) (4,179)
Foreign exchange loss (135) (272)
Total net employment costs (excluding share-based payment expense) (53,799) (50,576)
Cost of inventories (50,236) (48,088)
Other income(2) 1,344 1,349
Auditors' remuneration:
- Fees to auditors for the audit of these consolidated financial statements (860) (875)
- Fees to auditors' firms and associates for local audits (91) (88)
Total audit fees expense (951) (963)
Fees to auditors' firms and associates for other services:
- Assurance services (123) (139)
(1,074) (1,102)
1. Amortisation of intangible assets includes a charge of £7,851,000
(2024: £8,285,000) relating to the amortisation on acquired intangibles,
which is classified as an Adjusting Item as set out in Note 6.
2. Other income relates to the sublease of space at the Group's head
offices at Herbal House to an entity formerly under common control.
During the year, PricewaterhouseCoopers LLP charged the Group as follows:
• In respect of audit-related assurance services: £122,000 (2024:
£138,000).
• In respect of non-audit-related services: £1,000 (2024: £1,000).
6 Adjusting Items
2025 2024
£000 £000
Pre-IPO bonus awards - (2,367)
Pre-IPO share-based payment charges - (1,150)
Impairment of goodwill (see Note 12) (56,700) -
Total adjustments to Adjusted EBITDA (56,700) (3,517)
Amortisation on acquired intangibles (7,851) (8,285)
Total adjustments to Adjusted EBIT (64,551) (11,802)
2025 2024
£000 £000
Tax impact of pre-IPO cash bonus-awards - 593
Tax impact of pre-IPO share-based payment charges - (293)
Tax impact of impairment of goodwill - -
Tax impact on amortisation of acquired intangibles 1,977 2,085
Tax impact of Adjusting Items 1,977 2,385
Pre-IPO bonus awards
Pre-IPO bonus awards are one-off cash-settled bonuses and the cash component
of the Pre-IPO schemes, awarded in relation to the IPO process that completed
during the year ended 30 April 2021. These awards fully vested on 30 April
2024.
Pre-IPO share-based payment charges
Pre-IPO share-based payment charges relate to the Legacy Schemes, Pre-IPO
awards that were granted in relation to the IPO process that completed during
the year ended 30 April 2021. These awards fully vested on 30 April 2024.
Amortisation on acquired intangibles
Acquisition amortisation is a non-cash expense relating to intangible assets.
These expenses are excluded from Adjusted earnings because they are
non-operational and thus distort the underlying performance of the business.
The costs are adjusted for to present a clearer picture of the Group's ongoing
operational performance.
Cash paid in the year in relation to Adjusting Items totalled £6,004,000
(2024: £4,057,000).
7 Finance income and costs
2025 2024
£000 £000
Bank interest receivable 158 198
Interest payable on leases (660) (901)
Bank interest payable (7,705) (12,258)
Amortisation of capitalised borrowing costs (525) (4,604)
Amortisation of interest rate cap premium (297) (353)
Interest on discounting of financial liability (1,832) (1,568)
Net foreign exchange gain/(loss) on financing activities 530 (398)
Net finance costs (10,331) (19,884)
8 Employee benefit costs
The average monthly number of employees (including Directors) during the year
was made up as follows:
2025 2024
Number Number
Administration 544 558
Production 126 150
Total employees 670 708
Re-presented
2025 2024
£000 £000
Wages and salaries (54,745) (51,435)
Social security costs (6,469) (6,752)
Other pension costs (1,723) (2,487)
Share-based payment expense (1,839) (4,179)
Total gross employment costs (64,776) (64,853)
Staff costs capitalised as intangible assets 9,138 10,098
Total net employment costs (55,638) (54,755)
2025 2024
£000 £000
Staff costs capitalised as intangible assets 9,138 10,098
Subcontractor costs capitalised as intangible assets 1,913 2,484
Total capitalisation of intangible assets (Note 12) 11,051 12,582
1. In the prior year an amount of £2,484,000 relating to
subcontractor costs was included in the staff costs capitalised as intangible
assets. This comparative figure has been re-presented to appropriately exclude
these costs, whilst reconciling to total capitalisation of intangible assets.
The Group's employees are members of defined contribution pension schemes with
obligations recognised as an operating cost in the income statement as
incurred.
The Group pays contributions into separate funds on behalf of the employee and
has no further obligations to employees. The risks associated with this type
of plan are assumed by the member. Contributions paid by the Group in respect
of the current year are included within the consolidated income statement.
9 Taxation
(a) Tax on profit
The tax charge is made up as follows:
2025 2024
£000 £000
Profit before taxation 2,958 46,400
Current tax:
UK corporation tax on profit for the year 15,079 13,057
Foreign tax charge 1,415 1,009
Adjustment in respect of prior years 189 (278)
Total current tax 16,683 13,788
Deferred tax:
Origination and reversal of temporary differences (1,883) (1,746)
Adjustment in respect of prior years (762) 189
Total deferred tax (2,645) (1,557)
Total tax charge in the income statement 14,038 12,231
(b) The tax assessed for the year is higher than the standard UK rate of
corporation tax applicable of 25.0% (2024: 25.0%). The differences are
explained below:
2025 2024
£000 £000
Profit before taxation 2,958 46,400
Profit on ordinary activities multiplied by the UK tax rate 739 11,600
Effects of:
Non-deductible impairment of goodwill 14,176 -
Expenses not deductible for tax purposes 172 336
Non-taxable income (420) (356)
Effect of higher tax rates in overseas territories 9 16
Adjustment in respect of prior years (573) (89)
Share-based payments (65) 736
Other permanent differences - (12)
Total tax charge for the year 14,038 12,231
Taxation for other jurisdictions is calculated at the rates prevailing in each
jurisdiction. The increase in the expenses not deductible for tax purposes
relates to the impact of the non-cash impairment charge to Experiences
goodwill.
The Adjusted effective tax rate is slightly below 25.0% of Adjusted profit
before taxation, reflecting the positive impact of deferred taxation movements
with respect to share-based payment arrangements, driven by increases in the
Group's share price (refer to Note 6).
(c) Deferred tax:
Accelerated capital allowances Intangible assets Share-based payments Right-of-use assets Lease liabilities Other short-term temporary differences Total
£000 £000 £000 £000 £000 £000 £000
Balance as at 1 May 2024 (1,866) (9,500) 1,927 (1,183) 1,362 357 (8,903)
Adjustments in respect of prior years 666 (89) 138 - - 47 762
Adjustments posted through other comprehensive income (OCI) - - - - - 185 185
Adjustments posted through equity - - 1,773 - - - 1,773
Current year credit/(charge) to income statement 657 1,883 (124) 135 (113) (556) 1,882
Effects of movements in exchange rates - 14 - 4 (5) 1 14
Balance as at 30 April 2025 (543) (7,692) 3,714 (1,044) 1,244 34 (4,287)
Accelerated capital allowances Intangible assets Share-based payments Right-of-use assets Lease liabilities Other short-term temporary differences Total
£000 £000 £000 £000 £000 £000 £000
Balance as at 1 May 2023 (1,889) (11,231) 1,192 (1,488) 1,629 809 (10,978)
Adjustments in respect of prior years (54) (245) (256) 1 - 452 (102)
Adjustments posted through other comprehensive income (OCI) - 59 - - - (154) (95)
Adjustments posted through equity - - 536 - - - 536
Current year credit/(charge) to income statement 77 1,923 455 304 (267) (746) 1,746
Effects of movements in exchange rates - (6) - - - (4) (10)
Balance as at 30 April 2024 (1,866) (9,500) 1,927 (1,183) 1,362 357 (8,903)
The main rate of corporation tax for the UK is 25.0% (2024: 25.0%). For the
Netherlands companies, the first €200,000 of profits are taxed at 19.0%
(2024: 19.0%) and thereafter at 25.8% (2024: 25.8%).
10 Dividends
2025 2024
£000 £000
Proposed
Final dividend 2025: 2.0p (2024: £nil) per ordinary share of £0.10 each 6,677 -
6,677 -
Amounts recognised as distributions to equity holders
Paid
Interim dividend 2025: 1.0p (2024: £nil) per ordinary share of £0.10 each 3,395 -
3,395 -
The Directors recommend a final dividend for the year ended 30 April 2025 of
2.0 pence per share (2024: nil pence per share) subject to shareholder
approval at the Annual General Meeting, with an equivalent final dividend
charge of £6.7m based on the number of shares in issue at the end of the
financial year (2024: £nil). The final dividend will be paid on 20 November
2025 to all shareholders registered at the close of business on 24 October
2025. In accordance with IAS 10 'Events after the Reporting Period', the
proposed final dividend has not been accrued as a liability at 30 April 2025.
11 Earnings per share
Basic earnings per share
Basic earnings per share is calculated by dividing the earnings attributable
to ordinary shareholders by the weighted average number of ordinary shares in
issue during the period. For the purposes of this calculation, the weighted
average number of ordinary shares in issue during the period was 342,548,159
(2024: 343,093,868). The period-on-period movement reflects the issue of
1,597,155 (2024: 1,198,394) shares during the period including the issue of
1,413,971 of shares to satisfy the Group's obligation to its employees in
relation to the vested second and final tranche of the pre-IPO award in July
2024, the issue of 93,822 shares in respect of vested long-term incentive plan
awards, the issue of 86,371 shares in respect of vested deferred share bonus
plan awards and 2,991 in respect of the share save scheme (see Note 21). The
issue of shares was offset by 11,061,434 (2024: nil) shares being cancelled
during the period through the operation of the Group's share repurchase scheme
(see Note 22). The Group expects to move during FY26 to satisfying share
awards through market purchases rather than through dilution, subject to this
remaining EPS-accretive at the prevailing share price.
Shares in issue 2025 2024
Number of shares Number of shares
As at 1 May 343,310,015 342,111,621
Issue of shares during the period 1,597,155 1,198,394
Shares cancelled during the period (11,061,434) -
As at 30 April 333,845,736 343,310,015
2025 2024
Number of shares Number of shares
Weighted average number of shares for calculating basic earnings per share 342,548,159 343,093,868
Diluted earnings per share
For diluted earnings per share, the weighted average number of ordinary shares
in issue is adjusted to assume conversion of all potentially dilutive ordinary
shares. The Group has potentially dilutive ordinary shares arising from share
options granted to employees under the share schemes as detailed in Note 21 of
these condensed consolidated financial statements.
Adjusted earnings per share
Earnings attributable to ordinary equity holders of the Group for the year,
adjusted to remove the impact of Adjusting Items and the tax impact of these;
divided by the weighted average number of ordinary shares outstanding during
the year.
2025 2024
Number of shares Number of shares
Weighted average number of shares for calculating basic earnings per share 342,548,159 343,093,868
Weighted average number of dilutive shares 13,593,171 11,693,937
Total number of shares for calculating diluted earnings per share 356,141,330 354,787,805
2025 2024
£000 £000
Basic earnings attributable to equity holders of the Company (11,080) 34,169
Adjusting Items (see Note 6) 64,551 11,802
Tax on Adjusting Items (1,977) (2,385)
Adjusted earnings attributable to equity holders of the Company 51,494 43,586
2025 2024
Basic earnings per ordinary share (pence) (3.2) 10.0
Diluted earnings per ordinary share (pence) (3.2) 9.6
Basic earnings per ordinary share before Adjusting Items (pence) 15.0 12.7
Diluted earnings per ordinary share before Adjusting Items (pence) 14.5 12.3
12 Intangible assets
Goodwill Trademark Technology and development costs(1) Customer relationships(2) Software Total
£000 £000 £000 £000 £000 £000
Cost
As at 1 May 2024 143,622 16,423 39,058 43,238 261 242,602
Additions - - 11,037 - 14 11,051
Disposals - - (3,438) - - (3,438)
Foreign exchange (21) (30) - (39) - (90)
As at 30 April 2025 143,601 16,393 46,657 43,199 275 250,125
Accumulated amortisation and impairment
As at 1 May 2024 - 6,375 17,360 15,115 160 39,010
Amortisation charge - 1,633 12,969 5,848 104 20,554
Disposals - - (3,438) - - (3,438)
Impairment 56,700 - - - - 56,700
Foreign exchange - (4) - (7) - (11)
As at 30 April 2025 56,700 8,004 26,891 20,956 264 112,815
Net book value as at 30 April 2025 86,901 8,389 19,766 22,243 11 137,310
1. Technology and development costs include assets under construction
of £5,125,000 (2024: £4,735,000).
2. The opening balance of gross cost and accumulated depreciation has
been restated to reflect the transfer between customer relationships and
technology and development costs of historic Greetz technology costs and their
subsequent disposal. The asset had a nil net book value as at 1 May 2023 and
therefore there is no impact to the income statement or balance sheet in the
current or prior periods.
Goodwill Trademark Technology and development costs(1) Customer relationships Software Total
£000 £000 £000 £000 £000 £000
Cost
As at 1 May 2023 143,811 16,683 30,255 48,071 691 239,511
Additions - - 12,582 - 200 12,782
Disposals - - (3,779) - (627) (4,406)
Foreign exchange (189) (260) - (466) (3) (918)
As at 30 April 2024 143,622 16,423 39,058 47,605 261 246,969
Accumulated amortisation and impairment
As at 1 May 2023 - 4,851 10,160 13,486 559 29,056
Amortisation charge - 1,653 10,979 6,252 235 19,119
Disposals - - (3,779) - (627) (4,406)
Foreign exchange - (129) - (255) (7) (391)
As at 30 April 2024 - 6,375 17,360 19,483 160 43,378
Net book value as at 30 April 2024 143,622 10,048 21,698 28,122 101 203,591
1. Technology and development costs include assets under construction
of £4,735,000 (2023: £3,821,000).
(a) Goodwill
Goodwill of £6,333,000 (2024: £6,353,000) relates to the acquisition of
Greetz in 2018, recognised within the Greetz CGU. The movement between periods
is a result of foreign exchange revaluation.
Goodwill of £80,568,000 (2024: £137,269,000) relates to the acquisition of
Experiences and is allocated to the Experiences CGU. The movement between
periods is a result of a non-cash impairment charge to the goodwill balance of
£56,700,000.
(b) Trademark
£2,854,000 (2024: £3,744,000) of the asset balance are trademarks relating
to the acquisition of Greetz with finite lives. The remaining useful economic
life at 30 April 2025 on the trademark is 3 years 4 months (2024: 4 years 4
months).
£5,535,000 (2024: £6,304,000) of trademark assets relate to the brands
valued on the acquisition of Experiences. The remaining useful economic life
at 30 April 2025 on these trademarks is 7 years and 3 months (2024: 8 years
and 3 months).
(c) Technology and development costs
Technology and development costs of £19,687,000 (2024: £21,227,000) relate
to internally developed assets. The costs of these assets include capitalised
expenses of employees working full-time on software development projects and
third-party consulting firms. The remaining useful economic life of these
assets at 30 April 2025 ranges from 1 month to 3 years (2024: 1 month to 3
years).
Technology and development costs of £79,000 (2024: £471,000) relate to the
acquisition of Experiences and are allocated to the Experiences CGU. The
remaining useful economic life at 30 April 2025 is 3 months (2024: 1 year and
3 months).
(d) Customer relationships
£5,098,000 (2024: £6,041,000) of the asset balance relates to the valuation
of existing customer relationships held by Greetz on acquisition. The
remaining useful economic life at 30 April 2025 on these customer
relationships is 5 years 4 months (2024: 6 years 4 months).
£17,145,000 (2024: £22,081,000) of customer relationship assets relates to
those valued on the acquisition of the Experiences segment. The remaining
useful economic life at 30 April 2025 on these customer relationships is a
range of 4 years and 3 months and 1 year and 3 months (2024: a range between 5
years 3 months and 2 years and 3 months).
(e) Software
Software intangible assets include accounting and marketing software purchased
by the Group and software licence fees from third-party suppliers.
(f) Annual impairment tests
Goodwill
Goodwill is allocated to two cash-generating units (CGUs), namely the Greetz
and Experiences segments, based on the smallest identifiable group of assets
that generates cash inflows independently in relation to the specific
goodwill. The recoverable amount of a CGU or group of CGUs is determined as
the higher of its fair value less costs of disposal and its value in use
(VIU). In determining VIU, estimated future cash flows are discounted to their
present value.
The Group performed an annual test for impairment of Experiences CGU goodwill
as at 30 April 2024, with the results, sensitivity analysis and narrative
disclosure presented on pages 149-150 of the Group's Annual Report and
Accounts for the year ended 30 April 2024. Based on the sensitivity analysis,
the Directors identified the impairment assessment as a major source of
estimation uncertainty that had a significant risk of resulting in a material
adjustment to the carrying amount within the year ending 30 April 2025. In
accordance with paragraph 125 of IAS 1, the FY24 year-end accounts therefore
disclose the quantification of all key assumptions in the value in use
estimates and the impact of plausible changes in each key assumption. As part
of this disclosure, the sensitivity of Experiences' goodwill to forecast
revenue growth was highlighted.
During H1 FY25, Experiences trading performance was identified as an
indication that Experiences CGU goodwill may be impaired. The Group therefore
estimated the value in use of the Experiences CGU as at 31 October 2024. This
exercise determined that the carrying amount of Experiences goodwill exceeded
its recoverable amount and an impairment charge of £56,700,000 was recognised
in the consolidated income statement. The impairment charge has been
classified as an Adjusting Item (see Note 6).
The Group performed its annual impairment test of the goodwill allocated to
the Greetz and Experiences segments, as at 30 April 2025. The estimated
future cash flows are based on the approved plan, including the FY26 budget,
for the three years ending 30 April 2028. The estimated future cash flows are
identical to those used for the viability statement. They have been extended
by a further two years before applying a perpetuity using an estimated
long-term growth rate. The assumed 5 year pre-perpetuity projections period
represents a reduction of 12 months from 30 April 2024, aligning with the
Group's policy of reducing the period to 5 years. When estimating value in
use, the Group does not include estimated future cash flows that are expected
to arise from improving or enhancing the asset's performance.
As at 30 April 2025 there has been no amendment to the charge allocated to the
Experiences CGU during the year. Based on the sensitivity analysis performed,
the Directors identified the impairment assessment as a major source of
estimation uncertainty that had a significant risk of resulting in a material
adjustment to the carrying amount within the year ending 30 April 2026. In
accordance with paragraph 125 of IAS 1, the FY25 year-end accounts therefore
disclose the quantification of all key assumptions in the value in use
estimates and the impact of plausible changes in each key assumption.
As at 30 April 2025, no impairment charge has been recognised for goodwill
allocated to the Greetz CGU. The headroom over carrying amount is more than
adequate and there is no reasonable possible change in key assumptions
including those relating to future sales performance that would lead to an
impairment.
Scenario analysis performed as part of the Group's disclosure against the Task
Force on Climate-related Financial Disclosures (TCFD) (in the Annual report
and Accounts for the year ended 30 April 2025) identified two
transition-related climate risks with potential revenue and cost implications.
The analysis considered three scenarios: business as usual (>4(o)C by
2100); an unequal world (2.5(o)C by 2100); and the Paris Agreement Aligned
(1.5(o)C by 2050), with the most material risks arising under the Paris
Agreement Aligned scenario:
• For the risk of carbon taxation, we modelled the gross
(unmitigated) financial impact under a Paris Agreement Aligned scenario,
assuming the introduction of carbon taxes from FY28. Sensitivity analysis
indicates headroom / (impairment) of £42.2m and (£12.6m) for Greetz and
Experiences respectively.
• For the risk of shifting consumer sentiment, scenario analysis was
conducted to evaluate the potential consequences of different climate policy
pathways. However, the significant uncertainty surrounding behavioural and
market response assumptions means that any attempt to quantify a specific
financial impact would be highly speculative, hence no such estimate can be
meaningfully determined at this stage.
The Group has identified the following key assumptions as having the most
significant impact on the value in use calculation:
Greetz CGU Experiences CGU
2025 2024 2025 2024
Pre-tax discount rate (%)(1) 13.7% 13.5% 13.5% 15.1%
Revenue compound annual growth rate (CAGR)(2) 4.8% 8.8% 2.7% 6.6%
1. The discount rate is a pre-tax rate that reflects the current
market assessment of the time value of money and the risks specific to the
cash generating units. The pre-tax discount rates used to calculate value in
use are derived from the Group's post-tax weighted average cost of capital.
The decline in the discount rate from the previous year is due to reducing the
equity premium and betas used in the calculation.
2. The compound annual growth rate represents the average yearly
growth rate over the pre-perpetuity period.
3. In the prior year, the pre-perpetuity period of six years was a key
assumption as it exceeded the five-year maximum typically presumed under IAS
36, which requires justification for longer forecast horizons. In FY25 the
pre-perpetuity period is five years and therefore no longer constitutes a
key assumption.
The Group has performed sensitivity analysis to assess the impact of a change
in each key assumption in the VIU. The relevant scenario, in relation to a
revenue decrease, is consistent with the more severe downside scenario
(plausible scenario 2) prepared in connection with the viability statement
within the Annual Report and Accounts for the year ended 30 April 2025.
For the goodwill allocated to both the Experiences and Greetz CGU, the Group
modelled the impact of a 1%pt increase in the discount rate and a 2.2%pts
decrease in the compound annual growth rate was also modelled for Greetz and
Experiences respectively. The decrease in forecasted revenue sensitivity
pushed the growth rates out by one year with a reduction of 10% in Greetz and
10% in Experiences in the first year. The Group also modelled a scenario in
which both of these changes arise concurrently.
The results of this sensitivity analysis are summarised below:
Greetz CGU Experiences CGU
2025 2024 2025 2024
£m £m £m £m
Original headroom 45.6 80.8 1.6 23.3
Headroom / (impairment) using a discount rate increased by 1%pt 39.1 70.4 (2.5) 11.1
Headroom / (impairment) using a 2.2%pts decrease in the forecast revenue CAGR 38.6 54.1 (11.8) (36.7)
(April 2024: 5.4%pts decrease in forecast CAGR)(1)
Headroom using a pre-perpetuity period reduced by one year(2) N/a 76.3 N/a 8.2
Headroom / (impairment) combining both sensitivity scenarios detailed above 32.8 45.0 (15.2) (54.6)
1. The compound annual growth rate represents the average yearly
growth rate over the pre-perpetuity period.
2. In the prior year, the pre-perpetuity period of six years was a key
assumption as it exceeded the five-year maximum typically presumed under IAS
36, which requires justification for longer forecast horizons. In FY25 the
pre-perpetuity period is five years and therefore no longer constitutes a
key assumption.
Other finite-life intangible assets
At each reporting year date, the Group reviews the carrying amounts of other
finite-life intangible assets to determine whether there is any indication
that those assets have suffered an impairment loss. If any such indication
exists, the recoverable amount of the asset is estimated in order to determine
the extent, if any, of the impairment loss. Where it is not possible to
estimate the recoverable amount of an individual asset, the Group estimates
the recoverable amount of the cash-generating unit to which the asset belongs.
13 Property, plant and equipment
Freehold property Plant and machinery Fixtures and fittings Leasehold Computer equipment Right-of- Right-of-use Total
assets land
improvements use assets plant and machinery
and buildings(1)
£000 £000 £000 £000 £000 £000 £000 £000
Cost
As at 1 May 2024 3,905 7,202 4,055 10,535 2,547 1,536 22,160 51,940
Additions 68 1,032 198 514 443 - 111 2,366
Modifications - - - - - 251 - 251
Disposals (5) - (80) (37) (555) - (253) (930)
Foreign exchange (2) (1) (5) (4) (4) - (20) (36)
As at 30 April 2025 3,966 8,233 4,168 11,008 2,431 1,787 21,998 53,591
Accumulated depreciation and impairment
As at 1 May 2024 2,362 4,966 3,348 3,295 2,035 453 8,581 25,040
Depreciation charge 157 1,098 474 1,112 432 534 2,439 6,246
Disposals (5) - (80) (37) (555) - (253) (930)
Foreign exchange - 2 (3) 1 (3) 3 - -
As at 30 April 2025 2,514 6,066 3,739 4,371 1,909 990 10,767 30,356
Net book value as at 30 April 2025 1,452 2,167 429 6,637 522 797 11,231 23,235
1. The opening balances for cost and accumulated depreciation have
been updated to reflect the disposal of a lease that was not reflected in the
prior year. The April 2024 balance sheet and income statement were unaffected,
as the asset had a net book value of £nil at the time of disposal.
Freehold property Plant and machinery Fixtures and fittings Leasehold Computer equipment Right-of- Right-of-use Total
improvements use assets plant and machinery assets land
and buildings
£000 £000 £000 £000 £000 £000 £000 £000
Cost
As at 1 May 2023 3,905 6,862 4,182 10,482 2,507 1,355 23,374 52,667
Additions - 468 89 205 203 575 - 1,540
Remeasurements - - - - - - 162 162
Disposals - (115) (170) (89) (136) (366) (220) (1,096)
Foreign exchange - (13) (46) (63) (27) (28) (222) (399)
As at 30 April 2024 3,905 7,202 4,055 10,535 2,547 1,536 23,094 52,874
Accumulated depreciation and impairment
As at 1 May 2023 2,207 3,958 2,886 2,310 1,642 187 7,166 20,356
Depreciation charge 155 1,130 661 1,079 547 455 2,583 6,610
Disposals - (115) (170) (89) (136) (181) (220) (911)
Foreign exchange - (7) (29) (5) (18) (8) (14) (81)
As at 30 April 2024 2,362 4,966 3,348 3,295 2,035 453 9,515 25,974
Net book value as at 30 April 2024 1,543 2,236 707 7,240 512 1,083 13,579 26,900
14 Inventories
2025 2024
£000 £000
Raw materials and consumables 1,368 1,411
Finished goods 9,704 8,374
Total inventory 11,072 9,785
Less: Provision for write off of:
Raw materials and consumables (204) (380)
Finished goods (2,388) (2,311)
Net inventory 8,480 7,094
15 Trade and other receivables
2025 2024
£000 £000
Current:
Trade receivables 1,647 1,569
Less: provisions (179) (243)
Trade receivables - net 1,468 1,326
Other receivables 1,227 2,523
Prepayments 3,163 2,728
Total current trade and other receivables 5,858 6,577
The movements in provisions are as follows:
2025 2024
£000 £000
As at 1 May (243) (470)
Charge for the year - (32)
Utilised 11 172
Released 53 74
Foreign exchange - 13
As at 30 April (179) (243)
Trade and other receivables are predominantly denominated in the functional
currencies of subsidiary undertakings. There is no material difference between
the above amounts for trade and other receivables (including loan receivables)
and their fair value due to their contractual maturity of less than 12 months.
As permitted by IFRS 9, the Group applies the simplified approach to measuring
expected credit losses which uses a lifetime expected loss allowance for all
trade receivables. To measure the expected credit losses, trade receivables
have been grouped based on shared credit risk characteristics such as ageing
of the debt and the credit risk of the customers. A historical credit loss
rate is then calculated and adjusted to reflect expectations about future
credit losses. A customer balance is written off when it is considered that
there is no reasonable expectation that the amount will be collected and legal
enforcement activities have ceased.
The Group's credit risk on trade and other receivables is primarily
attributable to trade receivables. There are no significant concentrations
of credit risk since the risk is spread over a large number of unrelated
counterparties.
The Group's businesses implement policies, procedures and controls to manage
customer credit risk. Outstanding balances are regularly monitored and
reviewed to identify any change in risk profile.
The Group considers its credit risk to be low with Group revenue derived from
electronic payment processes (including credit card, debit card, PayPal, iDEAL
and Single Euro Payments Area) executed over the internet, with most receipts
reaching the bank accounts in one to two days.
At 30 April 2025, the Group had net trade receivables of £1,468,000 (2024:
£1,326,000). Trade receivables are reviewed regularly for any risk of
impairment and provisions are booked where necessary.
The maximum exposure to credit risk is the trade receivable balance at the
year-end. The Group has assessed its exposure below:
Trade receivables ageing
2025 2024
£000 £000
Up to 30 days 1,407 1,258
30 to 90 days 22 110
More than 90 days 218 201
Gross 1,647 1,569
Less: provisions (179) (243)
Net trade receivables 1,468 1,326
2025 2024
£000 £000
Non-current other receivables:
Other receivables 1,605 1,611
Total non-current trade and other receivables 1,605 1,611
Non-current other receivables relate to security deposits in connection with
leased property.
16 Cash and cash equivalents
2025 2024
£000 £000
Cash and bank balances 9,777 6,422
Cash equivalents 2,872 3,222
Total cash and cash equivalents 12,649 9,644
The carrying amount of cash and cash equivalents approximates their fair
value. Cash equivalents relate to cash in transit from various payment
processing intermediaries that provide receipting services to the Group.
Cash and cash equivalents are denominated in Pound Sterling or other
currencies as shown below.
2025 2024
£000 £000
Pound Sterling 8,180 6,303
Euro 3,777 2,981
Australian Dollar 194 190
US Dollar 498 170
Total cash and cash equivalents 12,649 9,644
17 Trade and other payables
2025 2024
£000 £000
Current
Trade payables 20,671 14,440
Other payables 1,116 5,515
Other taxation and social security 8,126 8,710
Accruals 23,686 22,800
Total current trade and other payables 53,599 51,465
Trade and other payables are predominantly denominated in the functional
currencies of subsidiary undertakings. There are no material differences
between the above amounts for trade and other payables and their fair value
due to the short maturity of these instruments.
Payables balances relating to the Experiences merchant accrual are separately
disclosed on the face of the balance sheet.
2025 2024
£000 £000
Non-current
Other payables 638 638
Other taxation and social security 1,926 914
Total non-current trade and other payables 2,564 1,552
18 Provisions for other liabilities and charges
Other provisions Dilapidations provisions Total
£000 £000 £000
As at 1 May 2024 2,255 2,334 4,589
Charged in the year 1,469 - 1,469
Utilisation (390) (22) (412)
Release of provisions in the year (692) (156) (848)
Foreign exchange (1) (3) (4)
As at 30 April 2025 2,641 2,153 4,794
Analysed as:
Current 2,252 - 2,252
Non-current 389 2,153 2,542
Other provisions Dilapidations provisions Total
£000 £000 £000
As at 1 May 2023 1,461 2,569 4,030
Charged in the year 891 - 891
Utilisation (74) (215) (289)
Release of provisions in the year (15) - (15)
Foreign exchange (8) (20) (28)
As at 30 April 2024 2,255 2,334 4,589
Analysed as:
Current 1,894 179 2,073
Non-current 361 2,155 2,516
Current provisions
Includes other provisions primarily relating to royalty provisions, a refund
provision and the current portion of the employee sabbatical provision. The
above provisions are due to be settled within the year.
Non-current provisions
Includes dilapidations provisions for the Herbal House head office, the Almere
facility in the Netherlands and the Tamworth facility in the UK. These are
classified as non-current due to their expected settlement dates, with the
earliest lease expiry among the three locations occurring in 2027. The balance
also includes the non-current portion of the employee sabbatical provision.
19 Contract liabilities
In all material respects, current deferred revenue at 30 April 2024 and 30
April 2025 was recognised as revenue during the respective subsequent year.
Other than business-as-usual movements there were no significant changes in
contract liability balances during the year. Deferred revenue includes the
value of advanced orders for future dispatch, the value of goods in transit
that are dispatched but not yet delivered and subscription income that has
been received and is to be recognised as future revenue in line with the
exercise of material rights by subscription members.
20 Borrowings
2025 2024
£000 £000
Current
Lease liabilities 3,214 3,257
Borrowings 111 73
Non-current
Lease liabilities 10,284 13,072
Borrowings 94,985 118,292
Total borrowings and lease liabilities 108,594 134,694
The Group's debt facilities consist of a £180,000,000 committed revolving
credit facility (the "RCF"), which now has a maturity date of 28 February
2029. This reflects the exercise during the year of a one-year extension
option, which was subsequently approved by the lenders. Amounts drawn under
the RCF bear interest at a floating reference rate plus a margin. The
reference rates are SONIA for loans in Sterling, EURIBOR for loans in Euros
and SOFR for loans in US Dollars. As at 30 April 2025 the Group had drawn
down £93,000,000 and €4,500,000 of the available revolving credit facility
(2024: £113,000,000 and €8,500,000). There was a foreign exchange impact
on borrowings during the year of £90,000 (2024: £nil).
The amounts drawn under the RCF bear interest at a floating reference rate
plus a margin. The reference rates are SONIA for loans in Sterling, EURIBOR
for loans in Euros and SOFR for loans in US Dollars. The Group hedges its
interest rate exposure on a rolling basis. As at the date of this report,
layered SONIA interest rate cap instruments are in place with strike rates of
between 4.5% and 5.0% on total notional of £50.0m until 31 October 2026:
Derivative type Execution dates Notional amount Start date Maturity date Underlying asset Strike rate
Interest rate cap 1 August 2022 £50.0m 1/8/2022 30/11/2024 SONIA 3.00%
Interest rate cap 3 April 2024 £50.0m 29/11/2024 31/5/2025 SONIA 5.00%
£35.0m 1/6/2025 28/11/2025
Interest rate cap 30 January 2025 £15.0m 31/5/2025 28/11/2025 SONIA 4.50%
£35.0m 29/11/2025 30/4/2026
Interest rate cap 2 June 2025 £15.0m 29/11/2025 30/4/2026 SONIA 4.50%
£50.0m 1/5/2026 30/10/2026
The RCF is subject to two covenants, each tested at six-monthly intervals. The
leverage covenant, measuring the ratio of net debt to last twelve months
Adjusted EBITDA (excluding share-based payments, as specified in the
facilities agreement), is a maximum of 3.5x at April 2025 and 3.0x for the
remaining term of the facility. The interest cover covenant, measuring the
ratio of last twelve months Adjusted EBITDA (excluding share-based payments,
as specified in the facilities agreement) to the total of bank interest
payable and interest payable on leases, is a minimum of 3.5x for the term of
the facility. The Group has complied with all covenants from entering the RCF
until the date of these condensed consolidated financial statements and is
forecast to comply with these during the going concern assessment period.
Borrowings are repayable as follows:
2025 2024
£000 £000
Within one year 111 73
Within one and two years - -
Within two and three years - -
Within three and four years 94,985 118,292
Within four and five years - -
Beyond five years - -
Total borrowings(1) 95,096 118,365
1 Total borrowings include £111,169 (2024: £73,000) in respect of
accrued unpaid interest and are shown net of capitalised borrowing costs of
£1,848,000 (2024: £1,973,000).
The table below details changes in liabilities arising from financing
activities, including both cash and non-cash changes.
Borrowings Lease liabilities Total
£000 £000 £000
As at 1 May 2023 170,520 19,525 190,045
Cash flow (71,271) (4,424) (75,695)
Foreign exchange - (129) (129)
Interest and other(1) 19,116 1,357 20,473
As at 30 April 2024 118,365 16,329 134,694
Cash flow (32,251) (3,902) (36,153)
Foreign exchange (90) 48 (42)
Interest and other(1) 9,072 1,023 10,095
As at 30 April 2025 95,096 13,498 108,594
1. Interest and other within borrowings comprises amortisation of
capitalised borrowing costs and the interest expense in the year. Interest and
other within lease liabilities comprises modifications to lease liabilities as
well as interest on leases as disclosed in Note 7.
21 Share-based payments
Pre-IPO awards
The original awards were granted on 27 January 2021 and comprised two equal
tranches, with the vesting of both subject to the achievement of revenue and
Adjusted EBITDA performance conditions for the year ended 30 April 2023 and
for participants to remain employed by the Company over the vesting period.
The Group exceeded maximum performance for both measures. Accordingly, the
first tranche vested on 30 April 2023 and was paid in July 2023; the second
tranche vested on 30 April 2024 and was paid in May 2024. Given the
constituents of the scheme, no attrition assumption was applied. The scheme
rules provided that when a participant left employment, any outstanding award
may have been reallocated to another employee (excluding the Executive
Directors). All previous awards vested on 30 April 2024 and all shares
outstanding at the beginning of the period were exercised in FY25. There were
no further shares granted during the period and this incentive scheme has now
ended.
2025 2024
Pre-IPO awards Number Number
of shares of shares
Outstanding as at 1 May 1,413,971 2,616,716
Granted - -
Exercised (1,413,971) (1,165,744)
Forfeited - (37,001)
Outstanding as at 30 April - 1,413,971
Exercisable as at 30 April - 1,413,971
The weighted average market value per ordinary share of Pre-IPO options
exercised during the year was £1.77 (2024: £1.48).
Long-Term Incentive Plan (LTIP)
The first grant of these awards was made on 1 February 2021 and vested on 2
July 2024. Half of the share awards granted are subject to a relative Total
Shareholder Return (TSR) performance condition measured against the
constituents of the FTSE 250 Index (excluding Investment Trusts). The other
half of the share awards granted are subject to an Adjusted basic pre-tax EPS
performance condition (calculated as Adjusted profit before taxation, divided
by the undiluted weighted average number of ordinary shares outstanding during
the year). Participants are also required to remain employed by the Group over
the vesting period, with a further holding period applying until the fifth
anniversary of grant for the Executive Directors. An attrition rate adjustment
has been applied to reflect the expected number of participants who will
forfeit their awards before vesting. This estimate is based on historical
attrition rates and is reviewed at each reporting date. The share-based
payment charge is adjusted accordingly, with any changes recognised in the
income statement. Activity in relation to these awards during the period
included new awards granted on 2 July 2024 under the existing scheme which
will vest on 2 July 2027 subject to the performance conditions being met.
Consistent with the existing scheme, participants are required to remain
employed by the Group over the vesting period. Vesting may arise sooner where
a former employee is a "good leaver" and the Remuneration Committee exercises
discretion to permit vesting after cessation of employment.
The outstanding number of share options at the end of the year is 11,514,466
(2024: 9,326,856), with an expected maximum vesting profile (stated net of
forfeitures since award) as follows:
FY26 FY27 FY28 Total
Share options granted on 5 July 2022 1,435,771 - - 1,435,771
Share options granted on 25 October 2022 258,842 - - 258,842
Share options granted on 4 July 2023 - 2,944,060 - 2,944,060
Share options granted on 19 September 2023 - 3,191,310 - 3,191,310
Share options granted on 2 July 2024 - - 3,684,483 3,684,483
The below tables give the assumptions applied to the options granted in the
period and the shares outstanding:
July 2024
Valuation model Stochastic and Black-Scholes and Chaffe
Weighted average share price (pence) 182.00
Exercise price (pence) 0.00
Expected dividend yield 0%
Risk-free interest rate 4.45%/4.23%
Volatility 46.16/44.87%
Expected term (years) 3.00/2.00
Weighted average fair value (pence) 119.26/182.00
Attrition 0%
Weighted average remaining contractual life (years) 2.97
2025 2024
LTIP awards Number Number
of share options of share options
Outstanding as at 1 May 9,326,856 3,064,998
Granted 3,962,477 6,991,966
Exercised (93,822) -
Forfeited (1,681,045) (730,108)
Outstanding as at 30 April 11,514,466 9,326,856
Exercisable as at 30 April - -
The weighted average market value per ordinary share of LTIP options exercised
during the year was £1.83 (2024: N/a).
Deferred Share Bonus Plan (DSBP)
The Group has bonus arrangements in place for Executive Directors and certain
key management personnel within the Group whereby a proportion of the annual
bonus is subject to deferral over a period of three years with vesting subject
to continued service only. Vesting may arise sooner where a former employee is
a "good leaver" and the Remuneration Committee exercises discretion to permit
vesting at cessation of employment. Given the constituents of the scheme, no
attrition assumption was applied.
The outstanding number of share options at the end of the year is 540,885
(2024: 386,842), with an expected vesting profile (stated net of forfeitures
since award) as follows:
FY26 FY27 FY28 Total
Share options granted on 5 July 2022 255,593 - - 255,593
Share options granted on 4 July 2023 - 44,878 - 44,878
Share options granted on 2 July 2024 - - 240,414 240,414
July 2024
Valuation model Black-Scholes
Weighted average share price (pence) 182.00
Exercise price (pence) 0.00
Expected dividend yield 0%
Risk-free interest rate N/a
Volatility N/a
Expected term (years) 3.00
Weighted average fair value (pence) 182.00
Attrition 0%
Weighted average remaining contractual life (years) 3.42
2025 2024
DSBP Number Number
of share options of share options
Outstanding as at 1 May 386,842 392,289
Granted 240,414 47,164
Exercised (86,371) (32,650)
Forfeited - (19,961)
Outstanding as at 30 April 540,885 386,842
Exercisable as at 30 April - -
The weighted average market value per ordinary share of DSBP options exercised
during the year was £2.05 (2024: £1.59).
Save As You Earn (SAYE)
The Group operates a SAYE scheme for all eligible employees, under which
participants are granted an option to purchase ordinary shares in the Company
at an option price set at a 20% discount to the average market price over the
three days prior to the invitation date. Options vest after a three-year
period, provided the participant enters into a savings contract with fixed
monthly contributions for the same duration. The FY22 awards were granted on 3
September 2021 and vested on 1 October 2024, with a six-month exercise period
following vesting. These awards are subject only to a continued employment
condition over the vesting period. During the year, the Group granted FY25
awards on 26 July 2024, which will potentially vest on 1 October 2027 on the
same terms.
The outstanding number of share options at the end of the year is 1,059,706
(2024: 1,009,635), with an expected vesting profile (stated net of forfeitures
since award) as follows:
FY26 FY27 FY28 Total
Share options granted on 8 September 2022 146,995 - - 146,995
Share options granted on 28 July 2023 - 670,001 - 670,001
Share options granted on 26 July 2024 - - 242,710 242,710
The below tables give the assumptions applied to the options granted in the
year and the shares outstanding:
July 2024
Valuation model Black-Scholes
Weighted average share price (pence) 215.50
Exercise price (pence) 150.00
Expected dividend yield 0%
Risk-free interest rate 4.21%
Volatility 43.99%
Expected term (years) 3.43
Weighted average fair value (pence) 90.87
Attrition 15%
Weighted average remaining contractual life (years) 2.17
2025 2025 2024 2024
SAYE Number Weighted average exercise price Number Weighted average exercise price
of share options (£) of share options (£)
Outstanding as at 1 May 1,009,635 1.37 783,819 1.78
Granted 272,636 1.50 842,552 1.17
Exercised (2,991) 1.17 - -
Cancelled (142,228) 1.46 (616,736) 1.62
Forfeited (77,346) 2.01 - -
Outstanding as at 30 April 1,059,706 1.31 1,009,635 1.37
Exercisable as at 30 April - - 1,111 1.62
Volatility assumptions
The fair values of the DSBP awards are equal to the share price on the date of
award as there is no price to be paid and employees are entitled to dividend
equivalents. For awards with a market condition, volatility is calculated over
the period commensurate with the remainder of the performance period
immediately prior to the date of grant. For all other conditions, volatility
is calculated over the period commensurate with the expected term. As the
Company had only recently listed, a proxy volatility equal to the median
volatility of the FTSE 250 (excluding Investment Trusts) over the respective
periods has been used. Consideration has also been made to the trend of
volatility to return to its mean, by disregarding extraordinary periods of
volatility.
Share-based payment expense
Share-based payments expenses recognised in the income statement:
2025 2024
£000 £000
Pre-IPO awards - 1,152
LTIP 2,734 2,340
SAYE 294 455
DSBP 443 305
Share-based payments expense(1) 3,471 4,252
1. The £3,471,000 (2024: £4,252,000) stated above is presented
inclusive of employer's National insurance contributions of £1,632,000 (2024:
£92,000). This is made up of contributions of £276,000 (2024: £790,000) and
an additional charge of £1,356,000 (2024: a release of £698,000) in relation
to a true up of NI at year-end based on market share price data.
22 Share capital and reserves
The Group considers its capital to comprise its ordinary share capital, share
premium, merger reserve, retained earnings and other reserves. Quantitative
detail is shown in the consolidated statement of changes in equity. The
Directors' objective when managing capital is to safeguard the Group's ability
to continue as a going concern in order to provide returns for the shareholder
and benefits for other stakeholders.
Called-up share capital
Ordinary share capital represents the number of shares in issue at their
nominal value. Ordinary shares in the Company are issued, allotted and fully
paid up.
The holders of ordinary shares are entitled to receive dividends as declared
from time to time and are entitled to one vote per share at meetings of the
Company. The shareholding as at 30 April 2025 is:
2025 2025 2024 2024
Number of shares £000 Number of shares £000
Allotted, called-up and fully paid ordinary shares of £0.10 each
As at 1 May 2024 343,310,015 34,331 342,111,621 34,211
Issue of shares during the period 1,597,155 159 1,198,394 120
Shares cancelled during the period (11,061,434) (1,106) - -
As at 30 April 2025 333,845,736 33,384 343,310,015 34,331
In the year ended 30 April 2025, the Company commenced a share repurchase
programme. By resolutions passed at the 2024 AGM, the Company's shareholders
generally authorised the Company to repurchase up to maximum of 34,362,148 of
its ordinary shares. The share repurchase programme was announced on 16
October 2024 and commenced on 5 November 2024. In the year ended 30 April
2025, a total of 11,377,505 (2024: nil) ordinary shares of £0.10 were
purchased and 11,061,434 of these shares purchased were subsequently
cancelled. The 316,017 of shares not cancelled as at 30 April 2025 were
transferred to the registrar for cancellation post year-end. The average
price paid was 218.2p with a total consideration paid (including fees of
£174,000) of £25,000,000 (2024: £nil). On cancellation the consideration
was transferred from the own shares held reserve (within other reserves) to
retained earnings and the nominal value of the shares transferred from share
capital to the capital redemption reserve.
In the year ended 30 April 2025, 1,597,155 ordinary shares (2024: 1,198,394)
were issued for the settlement of share-based payments. The Group expects to
move during FY26 to satisfying share awards through market purchases rather
than through dilution, subject to this remaining EPS-accretive at the
prevailing share price.
Share premium
Share premium represents the amount over the par value which was received by
the Company upon the sale of the ordinary shares. Upon the date of listing the
par value of the shares was £0.10 whereas the initial offering price was
£3.50. Share premium is stated net of direct costs of £736,000 (2024:
£736,000) relating to the issue of the shares.
Merger reserve
The merger reserve of £993,026,000 arose as a result of the Group
reorganisation undertaken prior to the Company's listing on the London Stock
Exchange. This reorganisation was accounted for using common control merger
accounting. Under this method, the assets and liabilities of the acquired
entities were recognised at their existing carrying amounts rather than at
fair value and no goodwill was recognised. The difference between the
consideration paid and the book value of net assets acquired was recorded
directly in equity within the merger reserve.
This accounting treatment was selected in preference to acquisition accounting
in order to reflect the continuity of ownership and to present the Group's
financial results on a basis that preserved the historical track record of the
underlying trading entities. Had acquisition accounting been applied, the
identifiable net assets would have been remeasured at fair value and a
significant goodwill asset would likely have been recognised, increasing net
assets and potentially resulting in the Group reporting positive net assets.
However, such treatment would not have reflected the substance of a
restructuring within a commonly controlled group.
The adoption of common control merger accounting has resulted in the
recognition of a significant merger reserve on consolidation. The merger
reserve is a debit balance within equity arising from the application of
merger accounting and is a significant contributor to the Group's reported net
liabilities position.
Other reserves
Other reserves represent the share-based payment reserve, the foreign currency
translation reserve, the hedging reserve, own shares held reserve and the
capital redemption reserve.
Share-based payment reserve
The share-based payment reserve is built up of charges in relation to
equity-settled share-based payment arrangements which have been recognised
within the consolidated income statement. Upon the exercise of share options
the cumulative amount recognised in the share-based payment reserve is
recycled to retained earnings, reflecting the transfer of value to the equity
of the Company.
Hedging reserve
The hedging reserve comprises the effective portion of the cumulative net
change in the fair value of cash flow hedging instruments related to hedged
transactions that have not yet occurred and the cumulative net change in the
fair value of time value on the cash flow hedging instruments.
Foreign currency translation reserve
The foreign currency translation reserve represents the accumulated exchange
differences arising since the acquisition of Greetz from the impact of the
translation of subsidiaries with a functional currency other than Sterling.
Own shares held reserve
The own shares held reserve represents the equity account used to record the
cost of the Company's own shares that have been repurchased. These shares are
not considered outstanding for the purposes of calculating earnings per share
and do not carry voting rights or the right to receive dividends while held by
the Company. Shares purchased for cancellation are included in the own shares
held reserve until cancellation, at which point the consideration is
transferred to retained earnings and the nominal value of the shares is
transferred from share capital to the capital redemption reserve.
Capital redemption reserve
The capital redemption reserve reflects the nominal amount of shares bought
back and cancelled.
Share-based payment reserve Foreign currency translation reserve Hedging Own shares held reserve Capital redemption reserve Total other reserves
reserve
£000 £000 £000 £000 £000 £000
As at 1 May 2023 42,211 (928) 1,881 - - 43,164
Other comprehensive income:
Exchange differences on translation of foreign operations - 30 - - - 30
Cash flow hedges:
Fair value changes in the year - - 715 - - 715
Cost of hedging reserve - - 243 - - 243
Fair value movements on cash flow hedges transferred to profit and loss - - (2,222) - - (2,222)
Deferred tax on other comprehensive income - - (95) - - (95)
Share-based payment charge (excluding National Insurance) 4,179 - - - - 4,179
Deferred tax on share-based payment transactions 536 - - - - 536
Share options exercised (4,158) - - - - (4,158)
As at 30 April 2024 42,768 (898) 522 - - 42,392
As at 1 May 2024 42,768 (898) 522 - - 42,392
Other comprehensive income/(expense):
Exchange differences on translation of foreign operations - (668) - - - (668)
Cash flow hedges:
Fair value changes in the year - - 7 - - 7
Cost of hedging reserve - - 95 - - 95
Fair value movements on cash flow hedges transferred to profit and loss - - (841) - - (841)
Deferred tax on other comprehensive income - 58 127 - - 185
Share-based payment charge (excluding National Insurance) 1,839 - - - - 1,839
Deferred tax on share-based payment transactions 1,773 - - - - 1,773
Current tax on share-based payment transactions 32 - - - - 32
Share options exercised (6,429) - - - - (6,429)
Own shares purchased for cancellation - - - (25,000) - (25,000)
Own shares cancelled - - - 24,262 1,106 25,368
As at 30 April 2025 39,983 (1,508) (90) (738) 1,106 38,753
23 Financial instruments and related disclosures
Accounting classifications and fair values
The amounts in the consolidated balance sheet and related notes that are
accounted for as financial instruments and their classification under IFRS 9,
are as follows:
Note 2025 2024
£000 £000
Financial assets at amortised cost:
Current assets
Trade and other receivables(1) 15 2,695 3,849
Cash 16 12,649 9,644
Non-current assets
Trade and other receivables 15 1,605 1,611
Financial assets at fair value:
Current assets
Financial derivatives 5 838
Non-current assets
Financial derivatives - 164
16,954 16,106
Financial liabilities at amortised cost:
Current liabilities
Trade and other payables(2) 17 45,473 42,755
Merchant accrual 40,374 45,274
Lease liabilities 20 3,214 3,257
Borrowings 20 111 73
Non-current liabilities
Trade and other payables(2) 17 638 638
Lease liabilities 20 10,284 13,072
Borrowings 20 94,985 118,292
195,079 223,361
1. Excluding prepayments.
2. Excluding other taxation and social security (as not classified as
financial liabilities).
The fair values of each class of financial assets and liabilities is the
carrying amount, with the exception of borrowings, based on the
following assumptions:
Trade receivables, trade payables and borrowings The fair value approximates to the carrying amount, predominantly, because of
the short maturity of these instruments.
Forward currency contracts The fair value is determined using the mark to market rates at the reporting
date and the outright contract rate.
Interest rate caps The fair value is determined by discounting the estimated future cash flows at
a market rate that reflects the current market assessment of the time value if
money and the risks specific to the instrument.
The fair values of bank loans and other loans approximates to the carrying
value, as reported in the balance sheet, gross of amortised costs of
£1,848,000 (2024: £1,973,000). This is because most borrowings are at
floating interest rates, with payments reset to market rates at intervals of
less than one year.
Fair value hierarchy
Financial instruments carried at fair value are required to be measured by
reference to the following levels:
• Level 1: quoted prices in active markets for identical assets or
liabilities.
• Level 2: inputs other than quoted prices included within Level 1
that are observable for the asset or liability, either directly (i.e. as
prices) or indirectly (i.e. derived from prices).
• Level 3: inputs for the asset or liability that are not based on
observable market data (unobservable inputs).
All financial instruments carried at fair value have been measured by
reference to Level 2.
Financial risk management
The Group has exposure to the following risks arising from financial
instruments:
• Credit risk.
• Liquidity risk.
• Market risk.
i) Risk management framework
In line with the Group's Risk Appetite statement, it aims to manage financial
risk prudently by balancing cost efficiency with acceptable risk. It does not
use financial instruments for speculation and retains discretion to hedge
exposures within the limits of its Treasury Policy.
ii) Credit risk
Credit risk is the risk of financial loss if a counterparty fails to discharge
its contractual obligations under a customer contract or
financial instrument.
• The Group's credit risk from its operations primarily arises from
trade and other receivables. This risk is assessed as low, as the balances are
short maturity, arise principally as a result of high volume, low value
transactions and have no significant concentration as there is no counterparty
balance that represents a significant credit risk concentration.
• The Group's credit risk on cash and cash equivalents is considered
to be low. Financial assets are held with bank, financial institution or
government counterparties that have a long-term credit rating of A3 or higher
from Moody's Investor Services and/or a long-term credit rating of A- or
higher from Standard & Poor's. The Group's treasury policy is to monitor
cash (when applicable deposit balances) daily and to manage counterparty risk
whilst also ensuring efficient management of the Group's RCF.
Further information on the credit risk management procedures applied to trade
receivables is given in Note 15 and to cash and cash equivalents in Note 16.
The carrying amounts of trade receivables and cash and cash equivalents shown
in those notes represent the Group's maximum exposure to credit risk.
iii) Liquidity risk
Liquidity risk is the risk that the Group will encounter difficulties in
meeting the obligations associated with its financial liabilities that are
settled by delivering cash. The Group's approach to managing liquidity is to
ensure, as far as possible, that it will always have sufficient liquidity to
meet its liabilities when due, under both normal and stressed conditions,
without incurring unacceptable losses or risking damage to the Group's
reputation.
Cash flow forecasting is performed centrally with rolling forecasts of the
Group's liquidity requirements regularly monitored to ensure it has sufficient
cash to meet operational needs. The Group's revenue model results in a strong
level of cash conversion allowing it to service working capital requirements.
The Group's sources of borrowing for liquidity purposes comprise a committed
RCF of £180,000,000, which now has a maturity date of 28 February 2029. This
reflects the exercise during the year of a one-year extension option, which
was subsequently approved by the lenders. Lease liabilities are also reported
in borrowings.
Liquidity risk management requires that the Group continues to operate within
the financial covenants set out in its facilities. The RCF is subject to two
covenants, each tested at six-monthly intervals. The leverage covenant,
measuring the ratio of net debt to last twelve months Adjusted EBITDA
(excluding share-based payments, as specified in the facilities agreement), is
a maximum of 3.0x for the remaining term of the facility. The interest cover
covenant, measuring the ratio of last twelve months Adjusted EBITDA (excluding
share-based payments, as specified in the facilities agreement) to the total
of bank interest payable and interest payable on leases, is a minimum of 3.5x
for the term of the facility. Covenant forecasting is performed centrally,
with regular monitoring to ensure that the Group continues to expect to meet
its financial covenants.
The following tables sets out the anticipated contractual cash flows including
interest payable for the Group's financial liabilities and derivative
instruments on an undiscounted basis. Where interest payments are calculated
at a floating rate, rates of each cash flow until maturity of the instruments
are calculated based on the forward yield curve prevailing at the respective
year-ends. All derivative contracts are presented on a net basis:
Contractual cash flows Due within Due within Due between Due after Total As at
1 year 1 and 3 years 3 and 5 years 5 years 30 April 2025
2025 £000 £000 £000 £000 £000 £000
Borrowings(1) - - 96,833 - 96,833 94,985
Interest on borrowings 5,909 11,135 4,544 - 21,588 111
Lease capital repayments 3,214 5,280 2,353 2,651 13,498 13,498
Lease future interest payments 516 567 280 113 1,476 -
Merchant accrual 42,918 - - - 42,918 40,374
Trade and other financial liabilities(2) 45,473 638 - - 46,111 46,111
Non-derivative financial liabilities 98,030 17,620 104,010 2,764 222,424 195,079
Interest rate caps 5 - - - 5 5
Derivative financial liabilities 5 - - - 5 5
Contractual cash flows Due within Due within Due between Due after Total As at
1 year 1 and 3 years 3 and 5 years 5 years 30 April 2024
2024 £000 £000 £000 £000 £000 £000
Borrowings(1) - - 120,266 - 120,266 118,292
Interest on borrowings 8,025 15,364 6,031 - 29,420 73
Lease capital repayments 3,257 6,251 3,085 3,736 16,329 16,329
Lease future interest payments 655 843 371 229 2,098 -
Merchant accrual 48,133 - - - 48,133 45,274
Trade and other financial liabilities(2) 42,755 638 - - 43,393 43,393
Non-derivative financial liabilities 102,825 23,096 129,753 3,965 259,639 223,361
Interest rate caps 935 92 - - 1,027 1,002
Derivative financial liabilities 935 92 - - 1,027 1,002
1. For the purpose of these tables, borrowings are defined as gross
borrowings excluding lease liabilities and fair value of derivative
instruments.
2. Consists of trade and other payables that meet the definition of
financial liabilities under IAS 32 (excluding merchant accrual, which is split
out separately above).
IFRS 7 requires the contractual future interest cost of a financial liability
to be included within the above table. As disclosed in Note 20 of these
condensed consolidated financial statements, borrowings are currently drawn
under a revolving credit facility and repayments can be made at any time
without penalty. As such there is no contractual future interest cost.
However, included in the above table is the expected future interest payments
based on the Group's drawings and existing hedging as at the balance sheet
date and forecasted SONIA and EURIBOR rates.
The merchant accrual contractual cash flows amount due within one year
represents the undiscounted gross value. The contractual cash flows being due
within one year is different from the forecast cash flow profile used to
discount the liability under IFRS 9. Amounts are due when the customer redeems
the voucher which is outside of the control of the Group, hence its
classification as a current liability and its contractual cash flows being
within one year. However, historical redemption periods show that actual
redemptions differ from the contractual period and therefore on a forecast
basis the cash flows span more than one year, as a result the liability is
discounted.
It is not expected that the cash flows included in the maturity analysis could
occur significantly earlier, or at significantly different amounts.
iv) Market risk
Currency risk
Currency risk involves the potential for financial loss arising from changes
in foreign exchange rates:
• Translation risk is exposure to changes in values of items in the
condensed consolidated financial statements caused by translating items into
Sterling. This is the Group's principal currency exposure in view of its
overseas operations.
• Transaction risk arises from changes in exchange rates from the
time a foreign currency transaction is entered into until it is settled.
This is relevant to the Group's operating activities outside the UK, which
are generally conducted in local currency. Transaction risk is not considered
significant, as the Group primarily transacts in Sterling and Euros and
generates cash flows in each currency which are sufficient to cover operating
costs.
• Other currency exposures comprise currency gains and losses
recognised in the income statement, relating to other monetary assets and
liabilities that are not denominated in the functional currency of the entity
involved. At 30 April 2025 and 30 April 2024, these exposures were not
material to the Group.
The Group applies strategies to management currency risk which may include the
use of forward contracts to purchase Euros, US Dollars and Australian Dollars
in exchange for Sterling and/or draw-down of the RCF in Euros, US Dollars or
Australian Dollars to provide a natural hedge. There was a foreign exchange
gain on borrowings during the year of £90,000.
Interest rate risk
Interest rate risk involves the potential for financial loss arising from
changes in market interest rates. The Group is exposed to interest rate risk
arising from borrowings under the revolving credit facility, which incurs
interest at a floating reference rate plus a margin. The reference rates are
SONIA for loans in Sterling, EURIBOR for loans in Euros and SOFR for loans in
US Dollars. As at 30 April 2025 the Group had drawn down £93,000,000 and
€4,500,000 of the available revolving credit facility.
To mitigate this risk, the Group has implemented hedging strategies. As at the
date of this report, the Group has the following interest rate hedging
instruments in place:
Derivative type Execution dates Notional amount Start date Maturity date Underlying asset Strike rate
Interest rate cap 1 August 2022 £50.0m 1/8/2022 30/11/2024 SONIA 3.00%
Interest rate cap 3 April 2024 £50.0m 29/11/2024 5/31/2025 SONIA 5.00%
£35.0m 1/6/2025 28/11/2025
Interest rate cap 30 January 2025 £15.0m 31/5/2025 28/11/2025 SONIA 4.50%
£35.0m 29/11/2025 30/4/2026
Interest rate cap 2 June 2025 £15.0m 29/11/2025 30/4/2026 SONIA 4.50%
£50.0m 1/5/2026 30/10/2026
The Group has elected to adopt the hedge accounting requirements of IFRS 9
Financial Instruments. The Group enters hedge relationships where the critical
terms of the hedging instrument and the hedged item match, therefore, for the
prospective assessment of effectiveness a qualitative assessment is performed.
Hedge effectiveness is determined at the origination of the hedging
relationship. Quantitative effective tests are performed at each year-end to
determine the continuing effectiveness of the relationship.
The Group determines the existence of an economic relationship between the
hedging instrument and hedged item based on the interest rate, amount and
timing of their respective cash flows. The Group assesses whether the
derivative designated in each hedging relationship is expected to be, and has
been, effective in offsetting changes in cash flows of the hedging item using
the hypothetical derivative method.
In these hedge relationships, the main sources of ineffectiveness are:
• The effect of the counterparty and Group's own interest rate risk
on the fair value of the caps, which is not reflected in the change in the
fair value of the hedged cash flows attributable to the change in interest
rates; and
• Changes in the timing of the hedged item.
The derivative financial assets are all net settled; therefore, the maximum
exposure to interest rate risk at the reporting date is the fair value of the
derivative assets which are included in the consolidated balance sheet:
2025 2024
Derivative financial assets £000 £000
Derivatives designated as hedging instruments
Interest rate cap - cash flow hedges 5 1,002
Total derivatives financial assets 5 1,002
2025 2024
£000 £000
Current and non-current:
Current 5 838
Non-current - 164
Total derivatives financial assets 5 1,002
Cash flow interest rate swap and cap
No ineffective portion arising from cash flow hedges was recognised in finance
expense during the year (2024: £nil).
Moonpig Group's primary floating rate interest exposure as at 30 April 2025
related to the SONIA reference rate. Gains and losses recognised in the cash
flow hedging reserve in equity on interest rate cap contracts as at 30 April
2025 will be released to the consolidated statement of comprehensive income as
the related interest expense is recognised.
The effects of the cash flow interest rate swap and cap hedging relationships
are as follows at 30 April:
Interest rate swap Interest rate cap 3.0% Interest rate cap 5.0% Interest rate cap 4.5%(1)
2025 2024 2025 2024 2025 2024 2025 2024
Carrying amount of derivatives (£000) - - - 838 - 164 5 -
Changes in fair value of the designated hedged item (£000) - 84 6 630 (164) 1 (36) -
Notional amount (£000) - - 70,000 70,000 42,500 42,500 25,000 -
Hedge ratio - - 1:1 1:1 1:1 1:1 1:1 -
Maturity date - - 30/11/2024 30/11/2024 28/11/2025 28/11/2025 30/04/2026 -
1. The Group put in place an interest rate cap during the year of
4.50% on £15.0m notional from 31 May 2025 until 28 November 2025, increasing
thereafter to £35.0m notional until expiry on 30 April 2026.
Interest rate movements on deposits, lease liabilities, trade payables, trade
receivables and other financial instruments do not present a material exposure
to the Group's balance sheet.
The table below details changes in derivative assets arising from financing
activities, including both cash and non-cash changes:
Derivative assets
£000
As at 1 May 2023 2,468
Cash (inflow) (2,072)
Non-cash movement 606
As at 30 April 2024 1,002
Cash (inflow) (801)
Non-cash movement (196)
As at 30 April 2025 5
Market risk sensitivity analysis
Financial instruments affected by market risks include borrowings and
deposits.
The following analysis, required by IFRS 7 Financial Instruments: Disclosures,
is intended to illustrate the sensitivity to changes in market variables,
being Sterling/Euro interest rates and Sterling/Euro exchange rates.
The sensitivity analysis assumes reasonable movements in foreign exchange and
interest rates before the effect of tax. The Group considers a reasonable
interest rate movement in SONIA or EURIBOR to be 1% (2024: 3%) based on
current interest rate projections. Similarly, sensitivity to movements in
Sterling/Euro exchange rates of 10% are shown, reflecting changes of
reasonable proportion in the context of movement in that currency pair over
the last five years.
The following table shows the illustrative effect on profit before tax
resulting from a 10% change in Sterling/Euro exchange rates:
Income (losses)/gains Equity (losses)/gains Income (losses)/gains Equity (losses)/gains
2025 2025 2024 2024
£000 £000 £000 £000
10% strengthening of Sterling against the Euro (263) (1,223) (340) (1,312)
10% weakening of Sterling against the Euro 289 1,345 416 1,604
The following table shows the illustrative effect on the consolidated income
statement from a 1.0% change in market interest rates on the Group's interest
expense. Refer to borrowings in Note 20.
2025 2024
£000 £000
1.0% increase in SONIA market interest rates (2024: 3.0%) (519) (2,913)
1.0% decrease in SONIA market interest rates (2024: 3.0%) 638 3,592
1.0% increase in EURIBOR market interest rates (2024: N/a) (68) N/a
1.0% decrease in EURIBOR market interest rates (2024: N/a) 68 N/a
Capital risk management
Capital risk is the risk that the Group will not be able to sustain its
operations in the long term due to an inability to secure sufficient capital
or maintain an adequate return on capital investment. This encompasses
financing risk (the risk that the Group cannot raise necessary funds to
continue its operations or finance expansion activities) and cost of capital
risk (associated with fluctuations in the cost of capital, which may influence
investment decisions and affect long-term strategic planning).
The Group's capital management objectives are focused on maintaining investor
confidence and supporting the sustainable development of the business. The
Group will always prioritise growth investment in the business and our
consistent strong operating cash generation and the progress means there is
financial flexibility to return incremental excess capital to shareholders by
way of dividends and share repurchases.
24 Commitments and contingencies
a) Commitments
The Group entered a financial commitment in respect of supplier of cut flowers
of £213,000 (2024: £212,000) and rental commitments of £91,000 (2024:
£17,000) which are due within one year.
During the period the Group entered a financial commitment in respect of
future stock purchases of £1,912,000 (2024: £nil). These purchases are
spread across the next three years and will be settled by November 2027.
b) Contingencies
Group companies have given a guarantee in respect of the Group's £180,000,000
revolving credit facility. As at 30 April 2025 the Group had drawn down
£93,000,000 and €4,500,000 of the available revolving credit facility
(2024: £113,000,000 and €8,500,000).
25 Related party transactions
Transactions with related parties
There were no related party transactions requiring disclosure in the year
ended 30 April 2025. The Group receives other income in respect of the
sublease of part of its head office to an entity that was considered a related
party due to common control until the Company's former private equity owner
ceased to be a Significant Shareholder in the Company on 25 April 2024.
2025 2024
£000 £000
Other income from related parties formerly under common control - 1,349
Compensation of key management personnel of Moonpig Group plc
The amounts disclosed in the table are the amounts recognised as an expense
during the reporting year related to key management personnel. Key management
personnel are defined as the Directors as they are the members of the Group
with the authority and responsibility for planning, directing and controlling
the activities of the Group.
Further detail in respect of the Directors remuneration can be found within
the Directors' Remuneration report in the Annual Report and Accounts for the
year ended 30 April 2025.
Re-presented
2025 2024
£000 £000
Short-term employee benefits 2,734 2,513
Post-employment pension and medical benefits 56 53
Share-based payment schemes(1) 1,084 1,918
Total compensation relating to key management personnel 3,874 4,484
1 The share-based payment amount disclosed above is the expense in
the year rather than the amount based on the performance assessment period as
disclosed in the Directors remuneration report within the Annual Report and
Accounts for the year ended 30 April 2025.
2 The prior year share-based payment scheme amount has been
re-presented to correctly reflect the amount recognised as an expense during
the year rather than the amount based on the performance assessment period as
disclosed in the Directors remuneration report
26 Related undertakings
A full list of subsidiary undertakings as defined by Companies Act 2006 and
which fall within the scope of consolidation under IFRS 10 as at 30 April
2025 is disclosed below. Titan Midco Limited is held directly by the Company
and all other subsidiary undertakings are held indirectly.
The equity shares held are in the form of ordinary shares or common stock. The
effective percentage of equity shares held in subsidiary undertakings is 100%
in all cases.
Subsidiary undertakings Number Country of incorporation Principal activity
Cards Holdco Limited(1) 12170467 England and Wales Trading company, management services
Moonpig.com Limited(1) 03852652 England and Wales Trading company
Experience More Limited(1) 03883868 England and Wales Trading company
Titan Midco Limited(1) 13014525 England and Wales Holding company
Horizon Bidco B.V.(2) 72238402 Netherlands Holding company
Greetz B.V.(2) 34312893 Netherlands Trading company
Full Colour B.V.(2) 34350020 Netherlands Trading company
1 Registered office address is Herbal House, 10 Back Hill, London,
EC1R 5EN, United Kingdom.
2 Registered office address is Koningsbeltweg 42, 1329 AK, Almere,
Netherlands.
All subsidiaries have a financial year-end of 30 April, aligned with the
Parent Company.
Titan Midco Limited is exempt from the Companies Act 2006 requirements
relating to the audit of their individual financial statements by virtue of
Section 479A of the Companies Act as this Company has guaranteed its
subsidiary companies under Section 479C of the Companies Act.
In accordance with article 408 of the Dutch Civil Code, Horizon Bidco B.V.
issued a declaration of joint and several liability in respect of its
consolidated participants. The declaration covered and resulted in the
standalone Horizon Bidco B.V. entity being exempt from an audit. Additionally,
Full Colour B.V. is exempt from an audit under the Dutch Civil Code by virtue
of its size.
27 Events after the balance sheet date
The following matters, which have arisen since the balance sheet date,
represent non-adjusting events under IAS 10 and are therefore disclosed due to
their materiality. They have not been reflected in the condensed consolidated
financial statements for the year ended 30 April 2025:
• On 2 May 2025, the Group announced a programme to repurchase up to
£30.0m of its ordinary shares during the period to 31 October 2025, or such
time as the Company provides further notice. This programme is the first of
two planned for FY26, to be executed in H1 and H2 respectively and follows the
Group's earlier announcement on 23 April 2025 of its intention to repurchase
up to £60.0m of its own shares during the new financial year. The Company's
policy is that share repurchases will only be conducted when they utilise
excess capital and are earnings enhancing. Since 1 May 2025 to 24 June 2025, a
further 3,293,060 shares of 10 pence each (representing 1.0% of the Company's
issued share capital as at 24 June 2025) have been repurchased for aggregate
consideration of £8,196,045 including fees and duty (aggregate value net of
fees of £8,139,018) and the average price paid was 247.2p per ordinary share.
With the exception of the above, no other adjusting or non-adjusting events
have occurred.
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