Final Results
25 June 2026
Moonpig Group plc ("Moonpig Group" or the "Group")
RESULTS ANNOUNCEMENT FOR THE YEAR ENDED 30 APRIL 2026
A year of strong financial and operational progress, with revenue up 6.5% and Adjusted EPS up 19.5%
Summary financial results
Year ended
30 April 2026Year ended
30 April 2025Year-on-year
growth
Revenue (£m)
373.0
350.1
6.5%
Gross profit (£m)
218.0
208.6
4.5%
Gross margin (%)
58.4%
59.6%
(1.2)%pts
Adjusted EBITDA (£m)1
104.6
96.8
8.1%
Adjusted EBITDA margin (%)1
28.0%
27.6%
0.4%pts
Reported profit before taxation (£m)
68.9
3.0
N/a
Adjusted profit before taxation (£m)1
76.5
67.5
13.4%
Adjusted earnings per share - basic (pence)1
18.0
15.0
19.5%
Dividend (pence)
3.75
3.00
25.0%
Free Cash Flow (FCF) (£m)1
73.5
66.1
11.2%
1 Stated before Adjusting Items of £nil (FY25: £56.7m) in Adjusted EBITDA, £7.6m (FY25: £64.6m) in profit before taxation and £nil (FY25: £nil) in Free Cash Flow. See Note 6 for more information.
Key highlights
• Revenue growth of 6.5% with the Moonpig brand growing at 8.6% and Greetz, our brand in the Netherlands, delivering constant currency revenue growth at 1.5% across the year.
• Adjusted EBITDA growth of 8.1%, with margin of 28.0%.
• Adjusted EPS growth of 19.5% reflecting growth in operating profit and the cumulative impact of buybacks.
• Orders growth of 2.1% driven by active customers growth to 12.3m (April 2025: 12.0m) in Moonpig and Greetz.
• AOV growth at 5.7% reflecting trading-up to higher-priced gifts (including new ranges from Next and Boots), card size format upsell and UK delivery innovation including the migration to tracked services.
• Continued progress in strengthening the Experiences product range.
• Free Cash Flow increase of 11.2%, to £73.5m.
• 25% increase in the total dividend for FY26 to 3.75 pence per share proposed by the Board.
• £60m of share buybacks completed in FY26 with the intention to repurchase up to £65m during FY27.
• Consistent financial framework, targeting mid-to-high single digit percentage annual revenue growth and an Adjusted EBITDA margin of 25% to 27%. We aim to deliver double-digit percentage growth in Adjusted earnings per share alongside continued returns of excess capital to shareholders.
Catherine Faiers, CEO, commented
"These results demonstrate the strength of Moonpig Group's brands, customer proposition and business model. The Group delivered good growth in revenue, profitability and cash generation whilst continuing to invest in the capabilities to support our future ambition. This performance reflects the hard work, commitment and execution of our outstanding teams across the business.
Since joining the business in March, my conviction in the opportunities ahead has only grown. At its heart, Moonpig Group helps people to build and maintain meaningful relationships and in an increasingly digital world, that role feels more relevant than ever.
What excites me most is the combination of trusted brands, rich proprietary customer data and differentiated operational capabilities that have been built over many years. Together they give us a more powerful foundation to deepen customer relationships, unlock more value across the Group and deliver attractive returns for shareholders over the long term."
Outlook for FY27
Since the start of the year, trading across the Group has been in line with expectations. Our expectations for FY27 remain unchanged.
Investor and analyst meeting
Catherine Faiers (CEO) and Andy MacKinnon (CFO) will host an in-person meeting for analysts and investors in central London with a presentation starting at 9.30 am today, followed by a Q&A session.
Analysts and investors wishing to register for this event should email investors@moonpig.com.
The presentation and Q&A will also be livestreamed in audio-only for virtual attendees. Investors wishing to join the livestream should register via the following link: https://sparklive.lseg.com/MoonpigGroup/events/b483afc1-9e48-4f34-91a0-7fa3cda7de7d
The results presentation will be available on the investor relations section of the Group's corporate website (https://www.moonpig.group/investors) shortly after the conclusion of the Q&A session.
Enquiries
Sodali & Co moonpig@client.sodali.com
Rob Greening / Russ Lynch / Elizabeth Kittle
Moonpig Group investors@moonpig.com, moonpig@client.sodali.com
Catherine Faiers, 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/.
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.
Chief Executive Officer's review
Overview
Since joining the business in March 2026, my conviction in the Group's purpose and long-term opportunity has only increased. We have trusted brands, a highly engaged customer base, rich proprietary customer data assets and differentiated operational capabilities. Together, these create a powerful platform from which to deliver sustainable growth and long-term shareholder value.
At our core, we help customers celebrate, connect with and strengthen relationships with the people who matter most to them. Every day, millions of customers trust us with some of life's most important moments, from birthdays and anniversaries to celebrations, milestones and acts of support. In a world increasingly shaped by technology and artificial intelligence, the human connections we help create feel more important than ever. This enduring need to stay connected underpins the resilience of our category and reinforces our confidence in the Group's long-term opportunity.
FY26 was a year of strong financial performance and operational progress. Revenue increased by 6.5% to £373.0m, Adjusted EBITDA increased by 8.1% to £104.6m and Adjusted EPS increased by 19.5% to 18.0 pence. We generated £73.5m of Free Cash Flow, enabling continued investment in the business while returning significant capital to shareholders through dividends and share buybacks.
The foundations of our strategy remain unchanged. We continue to operate within the same disciplined growth framework and financial model. This is focused on sustainable growth, strong cash generation and delivering attractive shareholder returns.
The sections that follow outline the progress made during FY26 and how we are pursuing these opportunities to create further value over time.
Leveraging data and technology
Our proprietary data assets are one of our most important sources of competitive advantage and an enabler of future growth. Our opportunity to increase customer frequency starts with helping customers remember and celebrate more occasions.
During FY26, our database of customer occasion reminders grew by 11.2% year-on-year to 113m, whilst Moonpig Plus and Greetz Plus memberships increased by 29.3% to 1.2m. These assets enable us to engage customers throughout the year, beyond the point of purchase. Our reminders proposition remains a significant differentiator, with around 40% of orders placed within seven days of an occasion reminder. Plus continues to strengthen customer loyalty and engagement, with members now accounting for around a quarter of Moonpig orders. Together, these capabilities deepen customer relationships, support higher purchase frequency and provide a strong platform for long-term growth. Looking ahead, we see further opportunities to enhance their effectiveness through greater personalisation and a deeper understanding of customer relationships, occasions and gifting intent.
Historically, we have used our data assets to improve recommendations, merchandising and customer engagement at scale. Increasingly, we are applying these capabilities at an individual customer level to deliver more relevant recommendations throughout the customer journey. We believe this represents a significant opportunity to improve discovery, increase conversion and strengthen customer engagement across a broader range of occasions.
We now have more than 40,000 card designs across Moonpig and Greetz. Within this range, helping customers discover the most relevant card is becoming increasingly important. During the year, we continued to improve search and discovery. A key step was the launch of dynamic card galleries, which personalise card collections in real time based on customer selections. For example, choosing "7 years" instantly updates every editable design to that age, helping customers find the right card more quickly and easily.
Over the past two years, we have invested significantly in technology features that help customers create more personal and meaningful greeting cards, including video messages and AI stickers. Adoption continues to grow, with creative features used in 31m greeting cards in FY26, an increase of 102% year-on-year. During the year, we continued this progress through the launch of Face Swap, which enables customers to merge a face from a photo into a greeting card image, alongside sticker placeholders and enhancements to the editing experience, including smarter text generation.Our fulfilment capabilities remain strategically important. During FY26, we completed automated parcel sortation, brought giant card production in-house and introduced multi-gift fulfilment capabilities. These initiatives improve efficiency, increase operational flexibility and strengthen the customer experience.
As advances in AI continue to lower barriers to content creation, we believe the ability to reliably manufacture, personalise and deliver products at scale becomes increasingly important. Customers ultimately judge us not only by the quality of our creative tools, but by whether the right product arrives, on time, for the right person and occasion.
Looking ahead, we will continue to invest in technology features where they improve customer outcomes. However, we believe some of the biggest opportunities to strengthen our competitive advantage lie in the combination of our technology and operational capabilities, and in how we use data and personalisation to deepen customer relationships, increase frequency and grow customer lifetime value.
Building our brands
The strength of our brands is reflected in customer loyalty and our ability to acquire and retain customers profitably. In FY26, the total active customer base across Moonpig and Greetz increased by 2.8% year-on-year to 12.3m, with growth in both brands. This reflects the strength of our marketing platform, which continues to acquire customers at scale.
Reliable delivery is central to how our brands are perceived and remains an important and increasingly valuable source of competitive advantage. During FY26, we continued to enhance our delivery proposition, with tracked delivery now accounting for more than 40% of UK card-only orders, giving customers greater confidence that important moments will be celebrated on time. We also introduced a premium 8am to 1pm next-day gift delivery service and extended the cut-off for next-day flower delivery to a market-leading 11pm in the UK. This provides greater flexibility, choice and convenience for customers while further strengthening our service proposition. Looking ahead, we will continue to invest in our delivery proposition, broadening the range of delivery options available to customers and recipients, enhancing choice and convenience, and further improving the end-to-end customer experience.
We are also building brand awareness in New Markets as the foundation for long-term growth. Total revenue across these markets grew by 33.0% to £15.7m in FY26 (FY25: £11.8m), comprising Ireland (£6.4m), Australia (£6.3m) and the US (£3.0m). We are prioritising Australia for incremental investment in customer acquisition, as we seek to establish a scalable and repeatable growth model that supports long-term expansion.
Evolving our range
One of our three growth drivers is increasing average order value, with growth in gift attachment remaining an important contributor to long-term growth. During FY26, gift attachment increased to 17.9% of orders (FY25: 17.7%), contributing to average order value growth of 5.7%.
Our focus is on building a more relevant, curated and trusted gifting proposition that complements the card journey and helps customers find the right gift for the right recipient. During FY26, we strengthened our gifting proposition through partnerships with trusted brands including expanding our partnership with Next through the launch of JoJo Maman Bébé, Next Flowers and Laura Ashley Flowers, while also broadening our range of Next products across homeware and fragrance. We also launched a new partnership with Boots, introducing products from its Liz Earle and Soap & Glory brands.
We continued to strengthen the local relevance of our proposition through new gifting brands and product formats. At Greetz, we introduced brands including Coco & Sebas, Zusss, Diep'r and Marcel's Green Soap, launched postcards and transitioned flower supply to our strategic fulfilment partner, enhancing both the customer proposition and operational efficiency. We also launched fresh flowers in Ireland and Australia, expanded local gifting ranges, introduced curated gift bundles and launched giant cards in Ireland, supporting higher gift attachment rates, card upsell and average order value growth.
At Experiences, we continued to strengthen the product range through new partnerships across casual dining, subscription gifting, social experiences, immersive experiences and days out, adding brands including PizzaExpress, Virgin Wines, F1 Arcade and The Traitors Live Experience.More recently, our focus at Experiences has broadened beyond the product range to the recipient experience. We have made organisational changes to bring the Experiences business closer to the rest of Moonpig Group and expect this alignment to strengthen over time. With this in mind, we are focused on ensuring that product quality and the end-to-end recipient journey consistently meet the standards expected across the Group. While this should support continued improvement in gross transaction value and customer experience, revenue progression is likely to remain moderated by lower commission rates as we evolve the proposition.
Maintaining high ethical, environmental and sustainability standards
Our sustainability strategy focuses on three priority areas: climate change, waste and circularity, and technology security and data privacy, supported by four long-term goals.
On climate change, we remain focused on reducing emissions across our operations and supply chain. During FY26, location-based Scope 1 and 2 emissions reduced to 463 tCO2e (FY25: 530 tCO2e), representing a 32% reduction from our baseline. Investments in renewable electricity meant our market-based Scope 1 and 2 emissions were 97% below the baseline level.
As at April 2026, supplier net-zero commitments covered 37.5% of our Scope 3 emissions (April 2025: 28.8%), while Scope 3 emissions intensity reduced by 2.3% year-on-year to 216 tCO2e per £1m of revenue in FY26.
Waste and circularity remain important priorities. During FY26, we established a packaging intensity baseline and introduced a target to reduce packaging intensity by 10% by 2030. Our Tamworth fulfilment facility achieved zero waste to landfill status, while we continued to expand FSC-certified sourcing across our operations. We also completed a Group-wide review of packaging materials and design, helping identify opportunities to reduce packaging usage, increase recyclability and improve resource efficiency over time.
Technology security and data privacy remain fundamental to maintaining customer trust. During FY26, we expanded multi-factor authentication, strengthened monitoring and threat detection capabilities, enhanced privacy controls and progressed implementation of an information security management system aligned with the NIST Cybersecurity Framework.
Our people remain central to the success of the Group. We continued to invest in employee development, wellbeing and inclusion while strengthening health and safety oversight across our operations. During the year, we maintained a zero recordable injury rate, increased female representation on our Group Extended Leadership Team to 45% (FY25: 41%) and improved gender diversity within our product, data and technology function, where 47% of new hires were female (FY25: 44%). We also delivered on the Group's commitment to invest £1m in charities through the Moonpig Group Foundation during the five years following our IPO and remain committed to supporting charitable causes through the Foundation in the years ahead.
Looking ahead
As we look ahead, we see significant opportunities to unlock further value from the assets and capabilities we have already built. Our focus is centred around three areas:
• Our differentiated model built on customer relationships and operational excellence: We continue to invest in technology, AI and data science where they improve creativity, relevance and customer experience. However, competitive advantage will increasingly come from the combination of both technology and operational excellence. Combining our technology capabilities with our fulfilment infrastructure, supplier relationships, manufacturing expertise and delivery partnerships enables us to manufacture, personalise and deliver products reliably at scale. As technology continues to lower the barriers to content creation, we believe the ability to execute consistently and provide a high-quality end-to-end customer experience will be increasingly important.
• Driving frequency and lifetime value by deepening customer relationships through personalisation and data: Our proprietary data assets provide a unique understanding of customer relationships, occasions and gifting intent. We make it easier for customers to remember important occasions, create more personal moments and stay connected with the people they care about. Despite ongoing economic uncertainty, we continue to see strong engagement around key occasions, and the underlying desire to stay connected with friends and family remains resilient. The opportunity is not simply to understand customers better, but to build deeper and more valuable relationships with them. Today, most customers use Moonpig for only a small proportion of the occasions they celebrate each year, giving us significant opportunity to deepen engagement, increase frequency and create more value for customers over time. This creates opportunities to improve relevance, strengthen customer engagement, enhance gifting propositions and reduce friction throughout the customer journey. Over time, we believe this can support higher customer frequency, customer lifetime value and long-term loyalty.
• Leveraging our Group advantage: We see opportunities to create more value by leveraging the Group's combined strengths more effectively. This includes operating increasingly as one Group, rather than a collection of individual businesses, sharing capabilities across brands, applying insights across markets and maximising the benefits of investments in technology, data and operations. We also see opportunities to become more externally connected, deepening our relationships with customers, suppliers, creators and strategic partners, and strengthening the ecosystem around our brands. Together, we believe these actions can improve execution, accelerate learning and support long-term value creation.
Chief Financial Officer's review
Introduction
Moonpig Group uses proprietary customer data to drive sustainable revenue growth, generating strong profit margins and profit growth. The Group converts this profit into surplus Free Cash Flow and allocates that cash in a disciplined way to compound earnings per share. The Group delivered strong performance in FY26, demonstrating the enduring nature of its business model.
The Group's revenue base is highly recurring. At Moonpig and Greetz, 89.4% of revenue (FY25: 87.4%) was generated from existing customers - those who had made a purchase prior to the start of the financial year. High customer loyalty at our card-first brands underpins consistent revenue growth and contributes to steadily rising customer lifetime value.
Our proprietary customer data remains an important part of our 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. Our database of customer occasion reminders increased by 11.2% year-on-year to 113m (30 April 2025: 101m). This means we can engage with customers directly and generate gifting sales with limited marketing costs at moments of high gifting intent.
Our strategy for Moonpig and Greetz is grounded in three clear revenue drivers: expanding our active customer base, increasing order frequency and growing average order value. The relative emphasis placed on each lever varies over time, allowing us to respond to opportunities while maintaining a disciplined focus on long-term value creation.
Our platform is structurally profitable and capital light. We maintain high gross margins, operate with negative working capital and manage capital expenditure within a disciplined return-on-investment framework. Combined with low inventory risk and operational leverage across fulfilment and technology, these characteristics enable the Group to consistently generate strong Free Cash Flow. This Free Cash Flow exceeds the reinvestment requirements of the business and provides flexibility to invest in organic growth, maintain leverage within our target range and return capital to shareholders.
During FY26, the Group returned £10.3m to shareholders through dividends and completed £60.2m of share repurchases. Reflecting our continued strong Free Cash Flow generation and confidence in the Group's outlook, the Board announced its intention to undertake further share buyback programmes of up to £65m in FY27.
Financial performance - Group
Year ended
30 April 2026Year ended
30 April 2025Year-on-year
growth
Revenue (£m)
373.0
350.1
6.5%
Gross profit (£m)
218.0
208.6
4.5%
Gross margin (%)
58.4%
59.6%
(1.2)%pts
Adjusted EBITDA (£m)1
104.6
96.8
8.1%
Adjusted EBITDA margin (%)1
28.0%
27.6%
0.4%pts
Reported profit before taxation (£m)
68.9
3.0
N/a
Adjusted profit before taxation (£m)1
76.5
67.5
13.4%
Reported earnings per share - basic (pence)
16.2
(3.2)
N/a
Adjusted earnings per share - basic (pence)1
18.0
15.0
19.5%
Free Cash Flow (FCF) (£m)1
73.5
66.1
11.2%
Net leverage1
1.03x
0.99x
0.04x
1 Stated before Adjusting Items of £nil (FY25: £56.7m) in Adjusted EBITDA, £7.6m (FY25: £64.6m) in profit before taxation, £5.7m (FY25: £62.6m) in profit after taxation and £nil (FY25: £nil) in Free Cash Flow. See Note 6 for more information.
Group revenue increased by 6.5% to £373.0m (FY25: £350.1m). Moonpig continued to demonstrate the consistency of its revenue model, delivering growth of 8.6% for the second consecutive year, driven by sustained new customer acquisition and growth in average order value. Greetz returned to modest constant currency revenue growth, driven by improved localisation of the proposition. Experiences revenue decreased year-on-year with performance improving in the second half of the year reflecting the progress made in building a broader and more relevant product range.
Gross profit increased by 4.5% year-on-year while gross margin reduced by 1.2 percentage points to 58.4%. This reflected strategic investment to enhance our delivery proposition in the UK and the Netherlands, together with the revenue mix effects from Moonpig growth in sales in markets outside the UK. Higher direct labour costs in our operational facilities were offset by savings from insourcing and automation. In FY27, we expect further investment to strengthen our delivery proposition and expand customer delivery choice and continued revenue growth in Ireland and Australia at lower gross margin.
Adjusted EBITDA increased by 8.1% to £104.6m (FY25: £96.8m), with Adjusted EBITDA margin increasing by 0.4 percentage points to 28.0%. Moonpig Adjusted EBITDA margin decreased by 0.7 percentage points, as positive operating leverage partially offset the lower growth in gross profit. Increased Adjusted EBITDA margin rates at Greetz and Experiences were driven by cost reduction initiatives and operational efficiencies. In FY27, we expect Adjusted EBITDA margin rate to ease towards our target range of 25% to 27% as we continue to invest in our delivery proposition and absorb a higher share-based payment expense.
Adjusted basic earnings per share increased by 19.5% to 18.0 pence (FY25: 15.0 pence), materially ahead of the growth in Adjusted profit after taxation of 11.5%. This is further to the 18.1% growth in Adjusted EPS reported for FY25 and reflects the cumulative impact of share repurchases. The Group's share buyback programmes reduced the weighted average number of shares in issue by 6.7% year-on-year as at 30 April 2026.
Free Cash Flow was £73.5m (FY25: £66.1m). This represented an Adjusted EBITDA to Free Cash Flow conversion rate of 70% (FY25: 68%), reflecting the capital-light nature of the Group's operating model. Net leverage remained consistent with our target of approximately 1.0x, with net debt (including lease liabilities) equivalent to 1.03x Adjusted EBITDA at 30 April 2026 (30 April 2025: 0.99x).
Our capital allocation framework remains unchanged. We continue to prioritise investment in organic growth and a progressive dividend policy, while returning surplus capital to shareholders. The Board has proposed a 25% increase in the total dividend for FY26 to 3.75 pence per share. The Group completed £60.2m of share repurchases during FY26. Our organic growth priorities are fully funded, significant M&A is not currently under consideration and the business continues to generate substantial surplus Free Cash Flow. Accordingly, the Group intends to undertake further share buybacks of up to £65m in FY27.
Revenue
Year ended
30 April 2026Year ended
30 April 2025Year-on-year
growth
Active customers (m)
12.3
12.0
2.8%
Orders per active customer (number)
2.92
2.94
(0.7)%
Moonpig and Greetz orders (m)
36.0
35.3
2.1%
Moonpig and Greetz AOV (£ per order)
9.32
8.82
5.7%
Moonpig and Greetz revenue (£m)
335.5
310.9
7.9%
Moonpig revenue (£m)
284.5
262.0
8.6%
Greetz revenue (£m)
51.0
48.9
4.5%
Moonpig and Greetz revenue (£m)
335.5
310.9
7.9%
Experiences revenue (£m)
37.4
39.2
(4.5)%
Group revenue (£m)
373.0
350.1
6.5%
Greetz revenue - local currency (€m)
59.0
58.1
1.5%
Revenue at Moonpig and Greetz increased by 7.9%, driven by growth in both orders and average order value (AOV):
• Active customers, all customers who have made a purchase in the last twelve months, increased to 12.3m (30 April 2025: 12.0m), with the strength of our marketing platform delivering growth at both Moonpig and Greetz.
• Orders per active customer decreased to 2.92 (FY25: 2.94). The reduction was specific to Greetz and reflects increased use of "free card" commercial partnerships with nationally recognised Dutch consumer brands, including ING, La Place and Pathé, as a customer acquisition channel. These partnerships are an effective source of new customers, although they have a short-term dilutive effect on average order frequency whilst engagement is built with newly acquired customers. Frequency at Moonpig remained unchanged year-on-year, even as adoption of higher-priced tracked next day delivery increased to 41% of card-only orders (FY25: 17%). This service offers greater delivery certainty and is consistent with our strategy of offering more delivery choice to our customers. During FY27, we plan to continue investing in our delivery proposition as we seek to further develop our delivery strategy, increasing customer choice and flexibility while supporting engagement and frequency over the longer term.
• Average order value increased by 5.7% year-on-year. This reflects customers trading-up to higher-priced gifts (including growth in categories where we have added trusted brands such as homeware), greater upsell into our large and giant card size formats, modest growth in gift attach rate and increased postage income from uptake of tracked next-day delivery and stamp price changes.
Moonpig delivered revenue growth of 8.6% for the second consecutive year with growth reflecting strong new customer acquisition, trading-up to higher-priced gifts and larger card size formats and growth in next-day tracked delivery. Growth in the second half was 7.9% year-on-year, compared with 9.4% in the first half of the year with the moderation reflecting lower order growth.
Greetz returned to modest growth, with revenue increasing by 1.5% on a constant currency basis and 4.5% on a reported sterling basis. Improved localisation of the product range and the expansion of partnership marketing contributed to gradual strengthening in constant currency revenue growth from 1.3% in the first half to 1.7% in the second half of the year. We also invested in the foundations that we expect to support future order growth, including reminders and Greetz Plus.
Experiences revenue decreased by 4.5% year-on-year, with revenue reducing by 8.9% in the first half and by 1.9% in the second half. This reflects the progress made in building a broader and more relevant product range. Gross transaction value trends improved during the year, supported by a strengthened range, category coverage and supplier base. Revenue growth continues to be moderated by lower commission rates as we evolve the proposition.
Our focus at Experiences has broadened beyond the commercial proposition to the recipient experience. We have made organisational changes to bring the Experiences business closer to the rest of Moonpig Group and expect this alignment will deepen over time. With this in mind, we are focused on ensuring the product quality and the end-to-end recipient journey consistently meet the standards expected across the Group. As a result, we expect the trading pattern of H2 FY26 to continue in the near term, with growth in gross transaction value being offset by lower commission rates as we prioritise improving proposition quality and recipient outcomes.
Gifting mix of revenue
Year ended
30 April 2026Year ended
30 April 2025Year-on-year
growthMoonpig and Greetz cards revenue (£m)
203.5
186.0
9.4%
Moonpig and Greetz attached gifting revenue (£m)
123.8
116.3
6.5%
Moonpig and Greetz standalone gifting revenue (£m)
8.2
8.6
(4.8)%
Moonpig and Greetz revenue (£m)
335.5
310.9
7.9%
Experiences gifting revenue (£m)
37.4
39.2
(4.5)%
Group revenue (£m)
373.0
350.1
6.5%
Moonpig / Greetz gift attach rate (%)
17.9%
17.7%
0.2%pts
Moonpig / Greetz total gifting revenue (£m)
132.0
124.9
5.7%
Moonpig / Greetz gifting revenue mix (%)
39.4%
40.2%
(0.8)%pts
Group gifting mix of revenue (%)
45.4%
46.9%
(1.5)%pts
Cards revenue increased by 9.4% year-on-year. Key growth drivers included order growth, customer upsell into larger card formats, rising uptake of tracked next-day delivery and stamp price increases. There were no significant changes in card prices, with the UK standard card price of £3.99 unchanged throughout both FY25 and FY26.
Attached gifting revenue at Moonpig and Greetz increased by 6.5% year-on-year. Growth was supported by higher order volumes and customers trading-up to higher-priced gifting products. Gift attach rate increased by 0.2 percentage points to 17.9%, supported by the addition of new gifting partners to our portfolio of trusted brands.
Looking ahead, we remain confident in the long-term opportunity to increase attach rate. Our focus is on improving gift discoverability across our websites and apps and enhancing personalisation capabilities. We are working to shift from recommendations based on the behaviour of customers viewing similar card designs towards more personalisation tailored to individual customer preferences and purchase history.
Standalone gifting has not been a strategic priority and represents a small proportion of total revenue, decreased year-on-year.
Gross margin rate
Year ended
30 April 2026Year ended
30 April 2025Year-on-year
growthMoonpig gross margin (%)
55.9%
57.0%
(1.1)%pts
Greetz gross margin (%)
46.7%
46.1%
0.6%pts
Moonpig and Greetz gross margin (%)
54.5%
55.3%
(0.8)%pts
Experiences gross margin (%)
93.8%
93.9%
(0.1)%pts
Group gross margin (%)
58.4%
59.6%
(1.2)%pts
Gross margin rate decreased by 1.2 percentage points to 58.4%, driven by a lower gross margin rate at Moonpig as we invested to strengthen our delivery proposition.
Moonpig gross margin rate reduced by 1.1 percentage points year-on-year driven by:
• Strategic investments to enhance our delivery proposition, including tracked next-day card delivery.
• Revenue mix effects from growth in New Markets, where gross margin rates are lower due to outsourced fulfilment.
• Direct costs increased due to higher UK employer NIC costs and the cost of maintaining wage differentials above rising minimum wages in the UK and the Netherlands operational teams.
• Margin benefit from operational efficiencies, including the insourcing of giant cards and automation of gift parcel sortation, which enabled advance orders to be routed through a lower-cost delivery proposition.
At Greetz, gross margin rate increased by 0.6 percentage points year-on-year. In the second half of the year, the transition of flowers supply to the Group's long-term strategic category partner delivered a modest gross margin rate benefit, alongside improvements in range and customer experience.
Looking forward to FY27, we expect gross margin rate at both Moonpig and Greetz to reflect continued investment to strengthen our delivery proposition and increase customer delivery choice. At Moonpig, we also expect some mix impact from continued revenue growth in Ireland and Australia.
At Experiences, gross margin rate was broadly unchanged year-on-year. This relatively high margin reflects the agency revenue model, under which revenue is recognised as commission from partners, while cost of goods is largely limited to the packaging and distribution of physical gift boxes.
Adjusted EBITDA margin
Year ended
30 April 2026Year ended
30 April 2025Year-on-year
growthMoonpig Adjusted EBITDA margin %
30.5%
31.2%
(0.7)%pts
Greetz Adjusted EBITDA margin %
17.6%
13.2%
4.4%pts
Moonpig and Greetz Adjusted EBITDA margin %
28.5%
28.4%
0.1%pts
Experiences Adjusted EBITDA margin %
23.9%
21.6%
2.3%pts
Group Adjusted EBITDA margin %
28.0%
27.6%
0.4%pts
Adjusted EBITDA margin rate increased to 28.0% (FY25: 27.6%), remaining ahead of our target range of approximately 25% to 27%. Moonpig segment margin decreased by 0.7 percentage points, as positive operating leverage partially offset the lower growth in gross profit. Increased Adjusted EBITDA margin rates at Greetz and Experiences were driven by cost reduction initiatives and operational efficiencies.
In FY27, we expect Adjusted EBITDA margin rate to ease towards our target range as we continue to invest in our delivery proposition and absorb a higher share-based payment expense, linked to CEO transition.
Share-based payment expenses
Adjusted EBITDA is stated after deduction of share-based payment expenses. We do not treat share-based payment expenses as Adjusting Items because they are recurring costs associated with the delivery of financial performance.
Year ended
30 April 2026Year ended
30 April 2025Share-based payment expenses (inclusive of NI) (£m)
(3.5)
(3.5)
FY26 was the first year since the IPO in which all three outstanding LTIP award tranches were expected to deliver meaningful vesting. This would ordinarily have resulted in a step-up in accrued share-based payment expenses. The flat year-on-year charge in FY26 reflects approximately £2.8m of lower costs arising from the resignation of the former CEO. This comprises £1.7m of expense that would otherwise have been recognised in FY26 and the release of £1.1m accrued over the two preceding financial years.
In FY27, we expect share-based payment expenses relating to CEO remuneration to return to more typical levels, reflecting the incoming CEO buyout arrangements, and therefore expect the overall charge to increase. Share-based payment expenses remain inherently sensitive to assumptions and may vary, including based on the outcome of non-market performance conditions.
Depreciation, amortisation, finance costs and taxation
Year ended
30 April 2026Year ended
30 April 2025Year-on-year
growthAdjusted EBITDA (£m)
104.6
96.8
8.1%
Depreciation and amortisation (£m)
(17.4)
(18.9)
(8.0%)
Adjusted EBIT (£m)
87.2
77.8
12.0%
Net finance costs (£m)
(10.6)
(10.3)
3.0%
Adjusted profit before taxation (£m)
76.5
67.5
13.4%
Adjusted taxation (£m)
(19.1)
(16.0)
19.5%
Adjusted profit after taxation (£m)
57.4
51.5
11.5%
The Group delivered year-on-year growth of 12.0% in Adjusted EBIT to £87.2m and 11.5% in Adjusted profit after taxation to £57.4m.
Depreciation and amortisation (excluding acquisition-related amortisation) decreased from £18.9m in FY25 to £17.4m in FY26. This reflects capital expenditure across FY24 to FY26 towards the lower end of our target range of 4% to 5% of revenue.
Net finance costs increased to £10.6m (FY25: £10.3m):
• Interest on bank borrowings remained broadly consistent with the prior year at £7.6m (FY25: £7.7m), with lower SONIA reference rates offset by higher average and closing borrowings as net debt increased year-on-year in line with Adjusted EBITDA to maintain net leverage close to our target of 1.0x.
• Amortisation of fees remained at £0.8m in both FY25 and FY26, reflecting the unwind of fees incurred in previous years in relation to securing the revolving credit facility and the Group's interest rate hedges.
• Imputed interest on the Experiences merchant accrual decreased to £1.4m (FY25: £1.8m), reflecting lower balances outstanding. The accrual is treated as a financial liability and discounted to present value in accordance with IFRS 9.
• Interest on lease liabilities decreased from £0.7m in FY25 to £0.5m in FY26, reflecting scheduled lease repayments.
• There was a £0.6m 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 a £0.1m loss (FY25: £0.5m gain), with the corresponding intercompany gain recognised in other comprehensive income in accordance with IAS 21. Net foreign exchange on financing activities also included a £0.1m loss (FY25: £0.1m gain) on the revaluation of the Group's euro-denominated external debt.
The Adjusted taxation charge was £19.1m (FY25: £16.0m). Expressed as a percentage of Adjusted profit before taxation, the Adjusted effective tax rate was 25.0% (FY25: 23.7%). The prior year effective tax rate was below the prevailing rates of corporation tax, reflecting favourable deferred tax movements relating to share-based payment arrangements, driven by changes in the Group's share price.
The reported taxation charge was £17.2m (FY25: £14.0m). The difference from Adjusted taxation relates 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 2026
Year ended 30 April 2025
Adjusted Measures1
Adjusting Items1
IFRS
MeasuresAdjusted Measures1
Adjusting Items1
IFRS
MeasuresEBITDA (£m)
104.6
-
104.6
96.8
(56.7)
40.1
Depreciation and amortisation (£m)
(17.4)
(7.6)
(25.0)
(18.9)
(7.9)
(26.8)
EBIT (£m)
87.2
(7.6)
79.6
77.8
(64.6)
13.3
Finance costs (£m)
(10.6)
-
(10.6)
(10.3)
-
(10.3)
Profit before taxation (£m)
76.5
(7.6)
68.9
67.5
(64.6)
3.0
Taxation (£m)
(19.1)
1.9
(17.2)
(16.0)
2.0
(14.0)
Profit / (loss) after taxation (£m)
57.4
(5.7)
51.7
51.5
(62.6)
(11.1)
Basic earnings per share (pence)
18.0p
(1.8)p
16.2p
15.0p
(18.2)p
(3.2)p
EBITDA margin (%)
28.0%
-
28.0%
27.6%
-
11.5%
EBIT margin (%)
23.4%
-
21.3%
22.2%
-
3.8%
PBT margin (%)
20.5%
-
18.5%
19.3%
-
0.9%
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
30 April 2026Year ended
30 April 2025Year-on-year movement
Acquisition amortisation (£m)
(7.6)
(7.9)
0.3
Impairment of goodwill (£m)
-
(56.7)
56.7
Operating profit impact of Adjusting Items (£m)
(7.6)
(64.6)
57.0
Taxation on acquisition amortisation (£m)
1.9
2.0
(0.1)
Taxation on impairment of goodwill (£m)
-
-
-
Taxation on Adjusting Items (£m)
1.9
2.0
(0.1)
Post-tax impact of Adjusting Items (£m)
(5.7)
(62.6)
56.9
Acquisition amortisation of £7.6m (FY25: £7.9m) 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.
Impairment of goodwill is classified as an Adjusting Item. The non-cash impairment charge was £nil, with the prior year £56.7m charge relating to Experiences.
Earnings per share (EPS)
Adjusted basic EPS increased by 19.5% to 18.0p (FY25: 15.0p), reflecting the positive impact from share buybacks.
Year ended
30 April 2026Year ended
30 April 2025Year-on-year
growthAdjusted basic EPS (pence)
18.0
15.0
19.5%
Reported basic EPS (pence)
16.2
(3.2)
N/a
Adjusted diluted EPS (pence)
17.4
14.5
20.0%
Reported diluted EPS (pence)
15.6
(3.2)
N/a
Shares in issue as at 1 May
333,845,736
343,310,015
(2.8)%
Issue of shares during the period
-
1,597,155
(100.0)%
Less: shares cancelled during the period
(27,779,906)
(11,061,434)
151.1%
Shares in issue as at 30 April
306,065,830
333,845,736
(8.3)%
Weighted average number of shares in issue
320,636,314
342,548,159
(6.4)%
Less: weighted average number of shares held by the EBT
(1,127,127)
-
N/a
Weighted average number of shares for calculating basic EPS
319,509,187
342,548,159
(6.7)%
Weighted average number of shares for calculating diluted EPS
330,753,569
356,141,330
(7.1)%
After reflecting the impact of employee share arrangements, Adjusted diluted EPS was 17.4p (FY25: 14.5p); in practice, the Group intends to continue satisfying share scheme vesting through market-purchased shares rather than through dilution, subject to this remaining EPS-accretive at the prevailing share price.
Reported basic EPS for FY26 was 16.2p (FY25: loss per share of 3.2p) reflecting the charge for Adjusting items.
The calculation of basic EPS is based on the weighted average number of ordinary shares. In accordance with IAS 33, shares held by the EBT are included in closing issued share capital but are treated as treasury shares and excluded from the weighted average number of shares in issue for the purposes of calculating EPS from acquisition until transferred to employees.
Free Cash Flow
The Group is highly cash-generative, with Free Cash Flow (FCF) of £73.5m (FY25: £66.1m). Adjusted operating cash flow, which includes capital expenditure, was £92.3m (FY25: £82.3m), representing an Adjusted operating cash conversion rate of 88% (FY25: 85%).
Year ended
30 April 2026Year ended
30 April 2025
Adjusted Measures1
£m
Adjusting Items1
£m
IFRS
Measures
£mAdjusted Measures1
£m
Adjusting Items1
£m
IFRS
Measures
£mProfit before tax
76.5
(7.6)
68.9
67.5
(64.6)
3.0
Add back: net finance costs
10.6
-
10.6
10.3
-
10.3
Add back: depreciation and amortisation
17.4
7.6
25.0
18.9
7.9
26.8
EBITDA2
104.6
-
104.6
96.8
(56.7)
40.1
Adjust: impact of share-based payments3
4.1
-
4.1
1.8
-
1.8
Add back: decrease / (increase) in inventories
1.0
-
1.0
(1.4)
-
(1.4)
Add back: (increase) / decrease in receivables
(0.6)
-
(0.6)
0.7
-
0.7
Add back: decrease in Experiences merchant accrual
(4.6)
-
(4.6)
(6.8)
-
(6.8)
Add back: increase in trade and other payables
3.7
-
3.7
4.4
-
4.4
Add back: impairment of goodwill
-
-
-
-
56.7
56.7
Less: research and development tax credits
(0.5)
-
(0.5)
(0.2)
-
(0.2)
Cash generated from operations
107.7
-
107.7
95.4
-
95.4
Less: income tax paid
(18.4)
-
(18.4)
(16.2)
-
(16.2)
Net cash generated from operating activities
89.3
-
89.3
79.2
-
79.2
Capital expenditure
(15.9)
-
(15.9)
(13.3)
-
(13.3)
Bank interest received
0.1
-
0.1
0.2
-
0.2
Net cash used in investing activities
(15.8)
-
(15.8)
(13.1)
-
(13.1)
Free Cash Flow (FCF)2
73.5
-
73.5
66.1
-
66.1
EBITDA to FCF conversion %2
70%
70%
68%
165%
Cash generated from operations
107.7
-
107.7
95.4
-
95.4
Less: capital expenditure
(15.9)
-
(15.9)
(13.3)
-
(13.3)
Add back: research and development tax credits
0.5
-
0.5
0.2
-
0.2
Operating cash flow2
92.3
-
92.3
82.3
-
82.3
EBITDA to operating cash conversion %2
88%
88%
85%
205%
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; as a practical expedient and for greater consistency with IAS 7, classification of cash flows FCF 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 expenses of £4.1m (FY25: £1.8m).
4 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.
Cash generated from operations increased to £107.7m (FY25: £95.4m). Key working capital movements were as follows:
• A cash outflow from the Experiences merchant accrual of £4.6m (FY25: £6.8m outflow). The accrual reduced by 7.8% year-on-year to £37.2m (April 2025: £40.4m) reflecting lower Experiences sales and an intentional reduction in sales mix of boxed experience gift collections with two-year validity towards digital and print-on-demand vouchers for individual experiences, which typically have one-year expiry periods.
• An inflow in respect of trade and other payables of £3.7m (FY25: £4.4m inflow). This reflects higher trade creditors driven by purchase timing and growth in Group trading.
Capital expenditure increased to £15.9m for the year (FY25: £13.3m) driven primarily by higher purchases of tangible fixed assets. This reflected investment at our primary UK fulfilment centre in Tamworth in new printing machinery to support the insourcing of giant card production and automation equipment for package sortation to enable multiple fulfilment options for gifts.
Capitalisation of intangible assets increased modestly to £11.8m (FY25: £11.0m). The technology capitalisation rate at Moonpig returned to more typical levels following a number of projects in FY25 that primarily comprised SaaS configuration costs that did not qualify for capitalisation under IFRS. This was partly offset by a planned reduction in capital expenditure at Experiences.
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 debt
Net debt at 30 April 2026 increased to £108.1m (April 2025: £96.0m). 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 at 30 April 2026 is 1.03x (30 April 2025: 0.99x), in line with our target of 1.0x.
As at
30 April 2026As at
30 April 2025Borrowings1 (£m)
(106.7)
(95.1)
Cash and cash equivalents (£m)
9.1
12.6
Borrowings less cash and cash equivalents (£m)
(97.6)
(82.5)
Lease liabilities (£m)
(10.4)
(13.5)
Net debt (£m)
(108.1)
(96.0)
Adjusted EBITDA (£m)
104.6
96.8
Net debt to Adjusted EBITDA (ratio)
1.03:1
0.99:1
Committed debt facilities (£m)
180.0
180.0
1 Borrowings are stated net of capitalised loan arrangement fees and hedging instrument fees of £1.2m as at 30 April 2026 (30 April 2025: £1.8m).
The Group's debt facilities consist of a £180.0m committed revolving credit facility with a maturity date of 28 February 2029. Borrowings are subject to interest at a margin over the reference rate of 200bps for net leverage of 1.0x or lower and 225bps for net leverage of 1.5x or lower. Thereafter they step up based on a margin ratchet 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. At the reporting date, layered SONIA interest rate cap instruments are in place with strike rates of between 4.0% and 4.5% on total notional of £75.0m until 31 October 2027. Further details are set out at Note 21.
Capital allocation
Our capital allocation policy remains unchanged. Investment to support organic growth - including continued investment in technology development, customer acquisition and automation in operations - remains the highest priority. This is followed by dividends, then selective, value-accretive M&A, where there is a strong strategic rationale, and finally the repurchase of shares where excess capital is available. Our organic growth priorities are appropriately funded and significant M&A is not currently part of our strategy. As a result we continue to return excess capital to shareholders.
Year ended
30 April 2026Year ended
30 April 2025
£m
£m
Free Cash Flow1
73.5
66.1
Interest and fees paid on borrowings, leases and hedging instruments
(8.4)
(8.8)
Net drawdown/(repayment) of borrowings
11.0
(23.3)
Net repayment of lease liabilities
(3.3)
(3.2)
Own shares repurchased for cancellation2
(60.5)
(24.3)
Own shares purchased by Employee Benefit Trust
(5.8)
-
Proceeds from employee SAYE share option exercises
0.2
-
Dividends paid
(10.3)
(3.4)
Net cash used in financing activities
(77.0)
(63.0)
Effect of foreign exchange rate changes on cash and cash equivalents
(0.1)
-
(Decrease)/increase in cash and cash equivalents in the year
(3.6)
3.0
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 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 £60.2m (FY25: £25.0m) of its own shares for cancellation (inclusive of fees and taxes). Of this amount, £60.5m (FY25: £24.3m) was paid during the year to the corporate broker managing the share repurchase programme, with £0.5m (FY25: £0.7m) remaining payable as at 30 April 2026.
During the year, the Board declared an interim dividend of 1.25 pence per share (FY25: 1.0 pence). The Board is recommending a final dividend of 2.5 pence (FY25: 2.0 pence) which, if approved at the 2026 AGM, will be paid on 19 November 2026 to shareholders on the register at the close of business on 23 October 2026. This would result in total dividends for FY26 of 3.75 pence per share (FY25: 3.0 pence), equating to an estimated total dividend distribution of approximately £11.4m and dividend cover of 4.8x based on Adjusted Basic EPS. This is dependent on issued share capital at the next record date. The Company's dividend policy is to maintain robust dividend cover of between 3x and 4x in the medium term, with dividends growing at least in line with Adjusted basic EPS.
During the year, two share buyback programmes were executed on behalf of the Group, repurchasing a total of 27,692,903 (FY25: 11,377,505) ordinary shares for consideration of £60.2m (FY25: £25.0m), including duty and expenses of £0.4m (FY25: £0.2m). The shares repurchased represented approximately 8.0% of opening issued share capital. The average effective purchase price was 217.4 pence per share (FY25: 219.7 pence). Cash outflows in FY26 relating to share repurchases totalled £60.5m (FY25: £24.3m), with the difference to consideration reflecting opening and closing payables relating to settlement timing. The number of shares cancelled during the period was 27,779,906, with the difference to shares repurchased reflecting the timing of transfers to the registrar for cancellation. The Group intends to carry out further share buybacks of up to £65m in FY27, through two programmes of up to £32.5m in each of H1 and H2.
Share purchases by the EBT are in addition to the Group's share buyback programmes. In FY26, the EBT purchased 2,708,481 shares for aggregate consideration of £5.8m, including stamp duty and expenses. Since the start of the new financial year, the EBT has purchased a further 1,996,871 shares for aggregate consideration of £4.3m. These purchases were intended to cover all anticipated exercises of employee share options across calendar years 2025 and 2026 under discretionary and non-discretionary schemes. The Group intends to continue settling obligations under employee share plans using market-purchased shares, subject to prevailing share prices.
Distributable reserves
As at 30 April 2026, the Company balance sheet held distributable reserves of £490.5m (April 2025: £558.5m), 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 FY27
Since the start of the year, trading across the Group has been in line with expectations. Our expectations for FY27 remain unchanged.
Consistent financial framework
Our goal is to deliver sustainable, high-quality growth supported by strong returns and consistent capital allocation. We are targeting mid-to-high single digit percentage annual revenue growth and an Adjusted EBITDA margin of 25% to 27%. We aim to deliver double-digit percentage growth in Adjusted earnings per share alongside continued returns of excess capital to shareholders.
Technical guidance
Share-based payment expenses
Share-based payment expenses in FY26 reflect approximately £2.8m of lower costs arising from the resignation of the former CEO, comprising £1.7m of expense that would otherwise have been recognised in FY26 and the release of £1.1m accrued over the two preceding financial years.
In FY27, we expect share-based payment expenses relating to CEO remuneration to return to more typical levels, reflecting the incoming CEO buyout arrangements. As a result, we expect the overall charge to increase. Share-based payment expenses remain inherently sensitive to assumptions and may vary, including based on the outcome of non-market performance conditions.
Depreciation and amortisation
We expect depreciation and amortisation to be between £18m and £20m in FY27. 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.
Adjusting Items
Amortisation of acquisition-related intangible assets is treated as an Adjusting Item. Based on the estimated useful lives of trademarks and customer lists arising on business combinations, we expect acquisition amortisation to be approximately £6.5m in FY27, £6.3m in FY28 and £5.7m in FY29.
Net finance costs
We expect net finance costs to increase in FY27, reflecting the higher reference interest rates indicated by SONIA forward curves and additional drawdown on our borrowing facilities in line with growth in Adjusted EBITDA to maintain net leverage at approximately 1.0x.
Taxation
We expect an effective tax rate of between 25% and 26% of reported profit before taxation in FY27 and thereafter. The 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.
Capital expenditure
Our target for tangible and intangible capital expenditure remains approximately 4% to 5% of revenue, with FY27 expected to sit in the lower half of this range. Within this we expect continued investment in tangible fixed assets as we further develop our operations and fulfilment capabilities, reflecting the strategic importance of these areas to the Group.
Working capital
We expect the Experiences merchant accrual to vary broadly in line with trading performance in the 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 2027, calculated as the ratio of Net Debt (calculated on an IFRS 16 basis, including lease liabilities) to last twelve months' Adjusted EBITDA. Net debt is expected to be modestly higher at 31 October 2026, reflecting the second-half weighting of Free Cash Flow and the distribution of capital returns across the year. The Group targets net leverage of around 1.0x. We retain the flexibility to move beyond this where required.
Consolidated Income Statement
For the year ended 30 April 2026
2026
2025
Before Adjusting Items
Adjusting Items (see Note 6)
Total
Before Adjusting Items
Adjusting Items (see Note 6)
Total
Note
£000
£000
£000
£000
£000
£000
Revenue
4
372,973
-
372,973
350,068
-
350,068
Cost of sales
5
(154,983)
-
(154,983)
(141,497)
-
(141,497)
Gross profit
217,990
-
217,990
208,571
-
208,571
Selling and administrative expenses
5, 6
(132,181)
(7,589)
(139,770)
(132,075)
(64,551)
(196,626)
Other income
20
1,358
-
1,358
1,344
-
1,344
Operating profit
87,167
(7,589)
79,578
77,840
(64,551)
13,289
Finance income
7
77
-
77
158
-
158
Finance costs
7
(10,716)
-
(10,716)
(10,489)
-
(10,489)
Profit before taxation
76,528
(7,589)
68,939
67,509
(64,551)
2,958
Taxation
9
(19,133)
1,912
(17,221)
(16,015)
1,977
(14,038)
Profit/(loss) after taxation
57,395
(5,677)
51,718
51,494
(62,574)
(11,080)
Profit/(loss) attributable to:
Equity holders of the Company
57,395
(5,677)
51,718
51,494
(62,574)
(11,080)
Earnings/(loss) per share (pence)
Basic
11
18.0
(1.8)
16.2
15.0
(18.2)
(3.2)
Diluted
11
17.4
(1.8)
15.6
14.5
(17.7)
(3.2)
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 2026
2026
2025
Note
£000
£000
Profit/(loss) for the year
51,718
(11,080)
Items that may be reclassified to profit or loss
Exchange differences on translation of foreign operations
173
(668)
Cash flow hedge:
Fair value changes in the year
24
271
7
Cost of hedging reserve
24
159
95
Fair value movements on cash flow hedges transferred to the profit or loss
24
-
(841)
Deferred tax on other comprehensive income/ (expense)
9
(108)
185
Total other comprehensive income/(expense)
495
(1,222)
Total comprehensive income/(expense) for the year
52,213
(12,302)
The accompanying notes are an integral part of these condensed consolidated financial statements.
Consolidated balance sheet
As at 30 April 2026
2026
2025
Note
£000
£000
Non-current assets
Intangible assets
12
130,511
137,310
Property, plant and equipment
13
21,617
23,235
Other non-current assets
15
1,613
1,605
Financial derivatives
24
403
-
154,144
162,150
Current assets
Inventories
14
7,516
8,480
Trade and other receivables
15
6,479
5,858
Current tax receivable
-
844
Financial derivatives
24
7
5
Cash and cash equivalents
16
9,087
12,649
23,089
27,836
Total assets
177,233
189,986
Current liabilities
Trade and other payables
17
56,873
53,599
Experiences merchant accrual
37,212
40,374
Provisions for other liabilities and charges
18
3,695
2,252
Current tax payable
2,501
3,217
Contract liabilities
19
5,999
5,774
Lease liabilities
20
3,330
3,214
Borrowings
21
83
111
109,693
108,541
Non-current liabilities
Trade and other payables
17
1,505
2,564
Borrowings
21
106,660
94,985
Lease liabilities
20
7,116
10,284
Deferred tax liabilities
9
3,870
4,287
Provisions for other liabilities and charges
18
2,610
2,542
121,761
114,662
Total liabilities
231,454
223,203
Equity
Share capital
23
30,606
33,384
Share premium
23
278,083
278,083
Merger reserve
23
(993,026)
(993,026)
Retained earnings
590,206
609,589
Own shares held
23
(4,792)
(738)
Other reserves
23
44,702
39,491
Total equity
(54,221)
(33,217)
Total equity and liabilities
177,233
189,986
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 24 June 2026 and were signed on its behalf by:
Catherine Faiers Andy MacKinnon
Chief Executive Officer Chief Financial Officer
24 June 2026 24 June 2026
Consolidated statement of changes in equity
For the year ended 30 April 2026
Share capital
Share
premium
Merger
reserve
Retained earnings
Own shares held
Other
reserves
Total
equity
Note
£000
£000
£000
£000
£000
£000
£000
As at 1 May 2024
34,331
278,083
(993,026)
642,056
-
42,392
3,836
Loss for the year
-
-
-
(11,080)
-
-
(11,080)
Other comprehensive expense for the year
23
-
-
-
-
-
(1,222)
(1,222)
Total comprehensive expense for the year
-
-
-
(11,080)
-
(1,222)
(12,302)
Share-based payments
22, 23
-
-
-
-
-
1,839
1,839
Deferred tax on share-based payments
9
-
-
-
-
-
1,773
1,773
Current tax on share-based payments
-
-
-
-
-
32
32
Shares transferred to employees to satisfy share option exercise
22, 23
-
-
-
6,270
-
(6,429)
(159)
Issue of ordinary shares
22, 23
159
-
-
-
-
-
159
Own shares purchased for cancellation
23
-
-
-
-
(25,000)
-
(25,000)
Own shares cancelled
23
(1,106)
-
-
(24,262)
24,262
1,106
-
Dividends
10
-
-
-
(3,395)
-
-
(3,395)
As at 30 April 2025
33,384
278,083
(993,026)
609,589
(738)
39,491
(33,217)
Profit for the year
-
-
-
51,718
-
-
51,718
Other comprehensive income
23
-
-
-
-
-
495
495
Total comprehensive income for the year
-
-
-
51,718
-
495
52,213
Share-based payments
22, 23
-
-
-
-
-
4,108
4,108
Deferred tax on share-based payments
9
-
-
-
-
-
(1,298)
(1,298)
Current tax on share-based payments
-
-
-
-
-
72
72
Shares transferred to employees to satisfy share option exercise
22, 23
-
-
-
(343)
1,523
(944)
236
Own shares purchased for treasury
23
-
-
-
-
(5,827)
-
(5,827)
Own shares purchased for cancellation
23
-
-
-
-
(60,210)
-
(60,210)
Own shares cancelled
23
(2,778)
-
-
(60,460)
60,460
2,778
-
Dividends
10
-
-
-
(10,298)
-
-
(10,298)
As at 30 April 2026
30,606
278,083
(993,026)
590,206
(4,792)
44,702
(54,221)
The accompanying notes are an integral part of these condensed consolidated financial statements.
Consolidated cash flow statement
For the year ended 30 April 2026
2026
2025
Note
£000
£000
Cash flow from operating activities
Profit before taxation
68,939
2,958
Adjustments for:
Depreciation and amortisation
12, 13
25,015
26,800
Impairment of goodwill
6, 12
-
56,700
Net finance costs
7
10,639
10,331
Research and development tax credit
(493)
(208)
Share-based payment expenses
4,108
1,839
Changes in working capital:
Decrease/ (increase) in inventories
989
(1,386)
(Increase)/decrease in trade and other receivables
(611)
724
Increase in trade and other payables
3,701
4,380
Decrease in Experiences merchant accrual
(4,581)
(6,753)
Cash generated from operating activities
107,706
95,385
Income tax paid
(18,434)
(16,184)
Net cash generated from operating activities
89,272
79,201
Cash flow from investing activities
Capitalisation of intangible assets
12
(11,815)
(11,051)
Purchase of property, plant and equipment
13
(4,035)
(2,255)
Bank interest received
7
77
158
Net cash used in investing activities
(15,773)
(13,148)
Cash flow from financing activities
Proceeds from new borrowings
21
52,000
-
Payment of fees related to borrowings
21
(40)
(400)
Repayment of borrowings
21
(41,000)
(23,343)
Payment of interest rate cap premium
24
(145)
(41)
Interest paid on borrowings
21
(7,672)
(8,508)
Interest received on swap and cap derivatives
-
841
Lease liabilities paid
20
(3,254)
(3,242)
Interest paid on leases
20
(522)
(660)
Own shares purchased for cancellation
23
(60,460)
(24,264)
Own shares purchased by Employee Benefit Trust
23
(5,827)
-
Dividends paid
10
(10,298)
(3,395)
Proceeds from employee SAYE share option exercises
239
-
Net cash used in financing activities
(76,979)
(63,012)
Net cash flows (used in)/generated from operating, investing and financing activities
(3,480)
3,041
Effect of foreign exchange rate changes on cash and cash equivalents
(82)
(36)
(Decrease)/increase in cash and cash equivalents in the year
(3,562)
3,005
Net cash and cash equivalents as at 1 May
12,649
9,644
Net cash and cash equivalents as at 30 April
9,087
12,649
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 2026 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 2026 are detailed in Note 27.
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 2026, 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 2026. 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 2026.
While the Group reported net current liabilities of £86,604,000 (2025: £80,705,000) and net liabilities of £54,221,000
(2025: £33,217,000), these positions do not reflect underlying liquidity concerns. The net current liability position is primarily attributable to the timing of settlement of operating liabilities, which form part of the Group's normal working capital cycle. The net liability position is largely driven by the £993,000,000 merger reserve debit arising from the pre-IPO group reorganisation accounted for under common control merger accounting. The Group continues to generate positive operating cash flow and finished the year with liquidity headroom of £81,200,000 (2025: £95,816,000), 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 has a maturity date of 28 February 2029. 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 2026 the Group had drawn down £104,000,000 and €4,500,000 of the available revolving credit facility (2025: £93,000,000 and €4,500,000).
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 4.0% and 4.5% on total notional of £75,000,000 until 31 October 2027. Further details are set out at Note 21.
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 net 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 since 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 12-month period from the date of signing the condensed consolidated financial statements.
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 2026 in relation to the most severe of the three 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 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 financial statements are:
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 £(5,874,000)/£6,168,000 from the amount recognised as at 30 April 2026. 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 £2,803,000 movement in the amount recognised in revenue. The Group's FY26 actual non redemption estimate falls in the middle of this range. The estimates are adjusted for actual customer utilisation rates in the year in which the vouchers expire.
Carrying amount of Experiences goodwill
Goodwill is tested annually for impairment. The critical accounting estimate made in the calculation of the recoverable amount is:
• Pre-perpetuity compound annual revenue growth rate of 1.4% (31 October 2025: 0.1%, 30 April 2025: 2.7%).
Sensitivity analysis and further disclosure relating to this critical accounting estimate is set out in Note 12.
2 Summary of significant accounting policies
New standards, amendments and interpretations adopted from 1 May 2025
The following amendment is effective for the year beginning 1 May 2025:
• Lack of Exchangeability (Amendments to IAS 21 The Effects of Changes in Foreign Exchange Rates).
This amendment is mandatorily effective for reporting periods beginning on or after 1 May 2025 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 a material effect on the financial statements unless otherwise indicated:
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).
• Amendments to IFRS 9 and IFRS 7 - Contracts Referencing Nature-dependent Electricity
The following amendments are effective for the year beginning 1 May 2027:
• IFRS 18 Presentation and Disclosure in the Financial Statements.
• IFRS 19 Subsidiaries without Public Accountability.
The Group is currently assessing the effect of these new accounting standards and amendments.
IFRS 18 Presentation and Disclosure in Financial Statements, which was issued by the IASB in April 2024, supersedes IAS 1 Presentation of Financial Statements and introduces major consequential amendments to other IFRS Accounting Standards, including IAS 8 Basis of Preparation of Financial Statements (renamed from Accounting Policies, Changes in Accounting Estimates and Errors). Although IFRS 18 is not expected to affect the recognition and measurement of items in the condensed consolidated financial statements, it is expected to have a significant effect on the presentation and disclosure of certain items. These changes include the introduction of new categories and defined sub‑totals in the statement of profit or loss, aggregation/disaggregation and labelling of information and new disclosure requirements for management‑defined performance measures.
IFRS 19 is a voluntary reduced-disclosure standard intended for eligible subsidiaries that do not have public accountability. This standard is therefore not applicable for the Group.
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 material rights over a twelve-month subscription term. 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 other benefits, such as free postcards.
Each of these material rights represents a separate performance obligation under IFRS 15. The transaction price, being the standalone selling price of the membership, is allocated to these performance obligations on a relative standalone selling price basis. In determining the standalone selling price of each material right, the Group considers the incremental value of the benefit to the customer and the expected level of utilisation over the membership period. Accordingly, the allocation reflects both the expected value of the benefits and expected redemption patterns.
Revenue allocated to the complimentary initial card (first year only) is recognised at the point the card is transferred to the customer. Revenue allocated to subsequent purchase discounts and other benefits is recognised as the related goods or services are transferred and the material rights are exercised. Deferred revenue arises where consideration received relates to material rights that have not yet been exercised at the reporting date.
For renewal memberships, where no complimentary initial card is provided, revenue is recognised over the 12-month membership period in line with the expected pattern of exercise of the material rights, which currently approximates a time-apportioned basis.
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 other experiences 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 is accounted for as a financial liability in accordance with IFRS 9. Estimates are trued up for actual customer redemption rates. See further information within critical accounting estimates. Where voucher redemption rates differ from expectations for a cohort of vouchers, the Group recognises the resulting adjustment to revenue and derecognises the related accrued merchant payable once its legal obligations to 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) Finance income and costs
Finance income arises from interest income in bank deposits. Finance costs are incurred on bank borrowings and the unwinding of the discount on lease liabilities and the merchant accrual. Foreign exchange, charge or credit, on financing activities is recognised within net finance costs. Each of these components is recognised in the income statement in the period in which they are incurred.
e) 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.
f) 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.
g) 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.
h) 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 impairment 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.
i) 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 recognised as an expense in the income statement in the period in which it is incurred.
Development expenditure relating to the enhancement of the Group's technology platforms, customer-facing websites and applications, personalisation capabilities, fulfilment systems and other internally generated software is recognised as an intangible asset only when the recognition criteria of IAS 38 Intangible Assets are met.
Certain costs incurred in the development phase of internal projects, including technology, app and platform enhancements and internally generated software and trademarks, are capitalised where management demonstrates the technical feasibility of completing the asset, its intention and ability to complete and use the asset, the existence of probable future economic benefits, the availability of adequate technical and financial resources to complete the development, and the ability to measure reliably the expenditure attributable to the asset.
The assessment of whether expenditure has moved beyond the research phase and meets the criteria for capitalisation requires management judgement. In particular, judgement is applied in determining when projects have reached a stage at which future economic benefits are considered probable, whether activities are enhancing existing capabilities or creating new functionality, and which costs are directly attributable to bringing the asset into use. Expenditure incurred during the research, planning and discovery phases of projects, or relating to routine maintenance and operational activities, are expensed as incurred.
Costs capitalised include employee costs for colleagues directly engaged in software development and product engineering activities, third-party development costs, software licence fees and other directly attributable expenditure incurred in developing the Group's technology platforms and digital products. Costs that are not directly attributable to qualifying development activities are recognised as an expense as incurred.
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
Trademarks
10 years
Technology and development costs
3 years
Customer relationships
1 to 12 years
Software
3 to 5 years
j) 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.
k) 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.
l) Property, plant and equipment
Property, plant and equipment are stated at historical cost less accumulated depreciation and impairment. Items of property, plant and equipment are recognised as assets when it is probable that future economic benefits associated with the item will flow to the Group and the cost of the item can be measured reliably. The cost includes the purchase price and any costs directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating as intended by management. 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 term
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 impact of this occurring is immaterial to the Group, the Group has flexibility in its production network and could shift production to other locations to mitigate any business interruptions.
m) 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. The Group's leases comprise offices, warehouses, solar panels 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.
n) 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.
o) Cash and cash equivalents
Cash comprises cash in hand, call deposits 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.
p) Financial instruments
The primary objective of the Group's cash management activities is to preserve capital and protect the value of its cash balances. 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.
q) 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.
r) 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.
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.
Own shares held reserve
The own shares held reserve represents the cost of the Company's own shares that are held by the Group. This comprises shares repurchased which are held pending cancellation, and shares held in treasury by the Group's Employee Benefit Trust ("EBT") to satisfy obligations under employee shares schemes.
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. 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.
Shares held by the EBT are treated as treasury shares and presented as a deduction from equity. Accordingly, such shares are excluded from the weighted average number of shares used in calculating earnings per share.
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 from the impact of the translation of subsidiaries with a functional currency other than Sterling.
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 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 paid 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. Shares transferred to employees on the exercise of new schemes were satisfied in the current year by the issue of shares held by the Employee Benefit Trust ("EBT") versus the prior year, in which new shares were issued. In accordance with IAS 33, these shares are treated as treasury shares and are excluded from the weighted average number of shares in issue from the date of acquisition until they are transferred to employees. For diluted EPS, the weighted average number of ordinary shares is adjusted to assume conversion of all dilutive potential ordinary shares.
v) 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 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.
3 Segmental analysis
In accordance with IFRS 8 - Operating Segments, the Group's reportable segments are based on internal reports that are regularly reviewed by the chief operating decision-maker (CODM) for the purpose of allocating resources and assessing performance. Operating segments are components of the Group that engage in business activities from which they may earn revenue and incur expenses, and for which discrete financial information is available.
The CODM comprises the Executive Directors (CEO and CFO) and other members of the Group Leadership Team. The CODM reviews discrete financial information for each segment and assesses performance and resource allocation based on revenue, gross profit, Adjusted EBITDA and Adjusted EBIT.
Based on internal reporting, the Group has three reportable segments: Moonpig, the online greeting cards and gifts business operating in the UK, Ireland, Australia and the US; Greetz, the online greeting cards and gifts business in the Netherlands; and Experiences, the gift experiences platform in the UK.
Adjusted EBITDA and Adjusted EBIT are alternative performance measures (APMs) and are not defined under IFRS. 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.
Finance income and expense are not allocated to reportable segments, as treasury activities are managed centrally and are not included in the measures reviewed by the CODM.
The Group's revenue is primarily 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 during the year.
For the year ended 30 April 2026
Moonpig
Greetz
Experiences
Group
Note
£000
£000
£000
£000
Revenue
4
284,493
51,046
37,434
372,973
Cost of sales
5
(125,448)
(27,197)
(2,338)
(154,983)
Gross profit
159,045
23,849
35,096
217,990
Adjusted EBITDA
86,705
8,959
8,929
104,593
Depreciation and amortisation1
(12,931)
(1,244)
(3,251)
(17,426)
Adjusted EBIT
73,774
7,715
5,678
87,167
Adjusting Items
6
Amortisation of acquired intangibles
6
-
(1,804)
(5,785)
(7,589)
Impairment of goodwill
6, 12
-
-
-
-
Operating profit / (loss)
73,774
5,911
(107)
79,578
Finance income
7
77
Finance costs
7
(10,716)
Profit before taxation
68,939
Taxation charge
9
(17,221)
Profit for the year
51,718
1 Excludes amortisation arising on Group consolidation of intangibles which is classified as an Adjusting Item - see Note 6
For the year ended 30 April 2025
Moonpig
Greetz
Experiences
Group
Note
£000
£000
£000
£000
Revenue
4
262,000
48,854
39,214
350,068
Cost of sales
5
(112,768)
(26,317)
(2,412)
(141,497)
Gross profit
149,232
22,537
36,802
208,571
Adjusted EBITDA
81,869
6,456
8,464
96,789
Depreciation and amortisation1
(15,060)
(1,606)
(2,283)
(18,949)
Adjusted EBIT
66,809
4,850
6,181
77,840
Adjusting Items
6
Amortisation of acquired intangibles
6
-
(1,753)
(6,098)
(7,851)
Impairment of goodwill
6, 12
-
-
(56,700)
(56,700)
Operating profit / (loss)
66,809
3,097
(56,617)
13,289
Finance income
7
158
Finance costs
7
(10,489)
Profit before taxation
2,958
Taxation charge
9
(14,038)
Loss for the year
(11,080)
1 Excludes amortisation arising on Group consolidation of intangibles which is classified as an Adjusting Item - see Note 6
The following table shows the information regarding assets by segment that reconciles to the consolidated results of the Group.
As at 30 April 2026
Moonpig
Greetz
Experiences
Group
£000
£000
£000
£000
Non-current assets1,2
32,690
17,811
101,627
152,128
Capital expenditure3
(4,324)
(226)
-
(4,550)
Intangible expenditure
(9,655)
-
(2,160)
(11,815)
As at 30 April 2025
Moonpig
Greetz
Experiences
Group
£000
£000
£000
£000
Non-current assets1,2
31,632
20,480
108,433
160,545
Capital expenditure3
(1,816)
(537)
(13)
(2,366)
Intangible expenditure
(7,968)
(17)
(3,066)
(11,051)
1 Comprises intangible assets and property, plant and equipment (inclusive of ROU assets).
2 All material non-current assets are located in the UK, with the exception of Greetz where the assets are located in the Netherlands.
3 Includes ROU assets capitalised in each period and additions to dilapidation assets.
4 Revenue
The following table shows revenue by segment and by 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.
For the year ended 30 April 2026
Moonpig
Greetz
Experiences
Group
£000
£000
£000
£000
UK
268,765
-
37,434
306,199
Netherlands
-
51,046
-
51,046
Ireland
6,367
-
-
6,367
Australia
6,324
-
-
6,324
USA
3,037
-
-
3,037
Total external revenue
284,493
51,046
37,434
372,973
For the year ended 30 April 2025
Moonpig
Greetz
Experiences
Group
£000
£000
£000
£000
UK
250,178
-
39,214
289,392
Netherlands
-
48,854
-
48,854
Ireland
4,781
-
-
4,781
Australia
4,872
-
-
4,872
USA
2,169
-
-
2,169
Total external revenue
262,000
48,854
39,214
350,068
The consolidated revenue for the Group was made up as follows:
2026
2025
£000
£000
Recognised at a point in time
364,120
343,949
Recognised over time
8,853
6,119
Total external revenue
372,973
350,068
5 Operating profit
Nature of expenses charged to operating profit from continuing operations:
2026
20253
£000
£000
Cost of sales
(154,983)
(141,497)
Selling and administrative expenses
(139,770)
(196,626)
Total expenses
(294,753)
(338,123)
2026
20253
Note
£000
£000
Cost of inventories
(53,943)
(50,236)
Total net employment costs (excluding share-based payment expenses)
8
(55,929)
(53,799)
Share-based payment expenses (including NI)
8, 22
(3,516)
(3,471)
Shipping and logistics
(88,157)
(80,616)
Marketing costs
(38,674)
(36,880)
Hosting, merchant and other variable platform fees
(14,387)
(14,357)
Depreciation of property, plant and equipment
13
(6,271)
(6,246)
Amortisation of intangible fixed assets1
12
(11,155)
(12,703)
Other costs2
(15,132)
(15,264)
Total expenses before Adjusting Items
(287,164)
(273,572)
Adjusting Items
6
(7,589)
(64,551)
Total expenses
(294,753)
(338,123)
1 Amortisation of intangible fixed assets excludes the charge for amortisation of acquired intangibles of £7,589,000 (2025: £7,851,000) which is classified as an Adjusting Item as set out in Note 6.
2 Other costs contain the remaining expenses that are immaterial in nature or immaterial on a disaggregated basis. Other costs include IT maintenance, building costs, ancillary staff costs and auditors' remuneration. Other costs also include a foreign exchange profit of £1,000 (2025: loss of £135,000).
3 There have been no changes to the numbers that were disclosed in the previous year, but the prior year figures in the table above have been represented to include additional information regarding nature of expenses charged to operating profit.
Other costs include the following fees for auditors' remuneration:
2026
2025
Auditors' remuneration:
£000
£000
- Fees to auditors for the audit of these consolidated financial statements
(864)
(860)
- Fees to auditors' firms and associates for local audits
(105)
(91)
Total audit fees expense
(969)
(951)
Fees to auditors' firms and associates for other services:
- Other non-audit services
(1)
(1)
- Assurance services
(126)
(122)
(1,096)
(1,074)
6 Adjusting Items
2026
2025
£000
£000
Impairment of goodwill (see Note 12)
-
(56,700)
Total adjustments to Adjusted EBITDA
-
(56,700)
Amortisation of acquired intangibles
(7,589)
(7,851)
Total adjustments to Adjusted EBIT
(7,589)
(64,551)
2026
2025
£000
£000
Tax impact of impairment of goodwill
-
-
Tax impact of amortisation of acquired intangibles
1,912
1,977
Tax impact of Adjusting Items
1,912
1,977
Amortisation of acquired intangibles (arising on business combinations) is excluded from Adjusted earnings because they are non-operational and therefore distort the underlying performance of the business.
There was no cash paid in the year in relation to Adjusting Items (2025: £6,004,000). The prior period cash payment relates to the settlement of pre-IPO one-off compensation arrangements, including employer NI contributions, that vested in FY24. There was no charge to the income statement during FY26 or FY25.
7 Finance income and costs
2026
2025
£000
£000
Bank interest receivable
77
158
Interest payable on leases
(522)
(660)
Bank interest payable
(7,644)
(7,705)
Interest payable on corporation tax
(195)
-
Amortisation of capitalised borrowing costs
(650)
(525)
Amortisation of interest rate cap premium
(170)
(297)
Interest on discounting of financial liability
(1,419)
(1,832)
Net foreign exchange (loss)/gain on financing activities
(116)
530
Net finance costs
(10,639)
(10,331)
8 Employee benefit costs
The average monthly number of employees (including Directors) during the year was made up as follows:
2026
2025
Number
Number
Administration
533
544
Operations
143
126
Total employees
676
670
2026
2025
£000
£000
Wages and salaries
(57,021)
(54,745)
Social security costs
(7,166)
(6,469)
Other pension costs
(1,728)
(1,723)
Share-based payment expenses (including NI)
(3,516)
(3,471)
Total gross employment costs
(69,431)
(66,408)
Staff costs capitalised as intangible assets
9,986
9,138
Total net employment costs
(59,445)
(57,270)
2026
2025
£000
£000
Staff costs capitalised as intangible assets
9,986
9,138
Subcontractor costs capitalised as intangible assets
1,829
1,913
Total capitalisation of intangible assets (see Note 12)
11,815
11,051
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:
2026
2025
£000
£000
Profit before taxation
68,939
2,958
Current tax:
UK corporation tax on profit for the year
17,377
15,079
Foreign tax charge
2,053
1,415
Adjustment in respect of prior years
(350)
189
Total current tax
19,080
16,683
Deferred tax:
Origination and reversal of temporary differences
(2,121)
(1,883)
Adjustment in respect of prior years
262
(762)
Total deferred tax
(1,859)
(2,645)
Total tax charge in the income statement
17,221
14,038
(b) Reconciliation of the effective tax rate
The tax assessed for the year is in line with the standard UK rate of corporation tax applicable at 25.0% (2025: 25.0%). The reconciling differences of the effective tax rate are explained below:
2026
2025
£000
£000
Profit before taxation
68,939
2,958
Profit on ordinary activities multiplied by the UK tax rate
17,235
739
Effects of:
Non-deductible impairment of goodwill
-
14,176
Expenses not deductible for tax purposes
88
172
Non-taxable income
(406)
(420)
Effect of higher tax rates in overseas territories
36
9
Adjustment in respect of prior years
(88)
(573)
Share-based payments
356
(65)
Total tax charge for the year
17,221
14,038
Taxation for other jurisdictions is calculated at the rates prevailing in each jurisdiction.
Expressed as a percentage of Adjusted profit before taxation, the Adjusted effective tax rate was 25.0% (FY25: 23.7%). The prior year effective tax rate was lower than the prevailing rates of corporation tax due to the positive impact of deferred tax movements relating to share-based payment arrangements, driven by changes in the Group's share price (refer to Note 6 and Alternative Performance Measures).
(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 2025
(543)
(7,692)
3,714
(1,044)
1,244
34
(4,287)
Adjustments in respect of prior years
(258)
-
(54)
-
-
50
(262)
Adjustments posted through other comprehensive income (OCI)
-
-
-
-
-
(108)
(108)
Adjustments posted through equity
-
-
(1,298)
-
-
-
(1,298)
Current year credit/(charge) to income statement
(258)
1,912
441
147
(128)
7
2,121
Effects of movements in exchange rates
-
(39)
-
(1)
6
(2)
(36)
Balance as at 30 April 2026
(1,059)
(5,819)
2,803
(898)
1,122
(19)
(3,870)
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)
136
(113)
(556)
1,883
Effects of movements in exchange rates
-
14
-
3
(5)
1
13
Balance as at 30 April 2025
(543)
(7,692)
3,714
(1,044)
1,244
34
(4,287)
The main rate of corporation tax for the UK is 25.0% (2025: 25.0%). For the Netherlands companies, the first €200,000 of profits are taxed at 19.0% (2025: 19.0%) and thereafter at 25.8% (2025: 25.8%).
10 Dividends
2026
2026
2025
2025
Pence per share
£000
Pence per share
£000
Amounts recognised as distributions to equity holders
Dividends paid
Final dividend in relation to FY25 (FY24)
2.00
6,421
-
-
Interim dividend in relation to FY26 (FY25)
1.25
3,877
1.00
3,395
Total paid
10,298
3,395
In addition, the Directors are proposing a final dividend in respect of the year ended 30 April 2026 of 2.50 pence per share (2025: 2.00 pence per share) subject to shareholder approval at the Annual General Meeting. This would result in total dividends for the year ended 30 April 2026 of 3.75 pence per share (2025: 3.00 pence) equating to an estimated dividend distribution of approximately £11.4m (based on the number of shares as at 30 April 2026). The final dividend will be paid on 19 November 2026 to all shareholders registered at the close of business on 23 October 2026. The proposed final dividend was not yet approved as at the year end and therefore, in accordance with IAS 10 'Events after the Reporting Period', it has not been accrued as a liability at 30 April 2026.
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.
2026
2025
Shares in issue
Number of shares
Number of shares
As at 1 May
333,845,736
343,310,015
Issue of shares during the period
-
1,597,155
Shares cancelled during the period
(27,779,906)
(11,061,434)
As at 30 April
306,065,830
333,845,736
2026
2025
EBT share holdings
Number of shares
Number of shares
As at 1 May
-
-
Shares acquired by the EBT
2,708,481
-
Shares transferred from the EBT to employees
(689,768)
-
As at 30 April
2,018,713
-
The EBT acquired 2,708,481 ordinary shares during the year (2025: nil), which are used to satisfy future employee awards. In accordance with IAS 33, these shares are treated as treasury shares and are excluded from the weighted average number of shares in issue from the date of acquisition until they are transferred to employees. Although shares held by the EBT are not treasury shares under UK company law, they are treated as treasury shares for the purposes of IAS 33 and excluded from the weighted average number of ordinary shares in issue until such time as they are transferred out of the trust. On transfer, these shares are included in the weighted average number of shares in issue.
2026
2025
Number of shares
Number of shares
Weighted average number of shares in issue
320,636,314
342,548,159
Less: weighted average number of shares held by the EBT
(1,127,127)
-
Weighted average number of shares for calculating basic earnings per share
319,509,187
342,548,159
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 22 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.
2026
2025
Number of shares
Number of shares
Weighted average number of shares for calculating basic earnings per share
319,509,187
342,548,159
Weighted average number of dilutive shares
11,244,382
13,593,171
Total number of shares for calculating diluted earnings per share
330,753,569
356,141,330
2026
2025
£000
£000
Basic earnings attributable to equity holders of the Company
51,718
(11,080)
Adjusting Items (see Note 6)
7,589
64,551
Tax on Adjusting Items
(1,912)
(1,977)
Adjusted earnings attributable to equity holders of the Company
57,395
51,494
2026
2025
Basic earnings per ordinary share (pence)
16.2
(3.2)
Diluted earnings per ordinary share (pence)
15.6
(3.2)
Basic earnings per ordinary share before Adjusting Items (pence)
18.0
15.0
Diluted earnings per ordinary share before Adjusting Items (pence)
17.4
14.5
12 Intangible assets
Goodwill
Trademark
Technology and development costs2
Customer relationships
Software
Total
£000
£000
£000
£000
£000
£000
Cost
As at 1 May 2025
143,601
16,393
46,657
43,199
275
250,125
Additions
-
-
11,815
-
-
11,815
Disposals
-
-
(23,022)
-
(276)
(23,298)
Foreign exchange
106
146
-
188
1
441
As at 30 April 2026
143,707
16,539
35,450
43,387
-
239,083
Accumulated amortisation and impairment
As at 1 May 2025
56,700
8,004
26,891
20,956
264
112,815
Amortisation charge
-
1,654
11,205
5,875
10
18,744
Disposals
-
-
(23,022)
-
(276)
(23,298)
Impairment
-
-
-
-
-
-
Foreign exchange
-
28
-
281
2
311
As at 30 April 2026
56,700
9,686
15,074
27,112
-
108,572
Net book value as at 30 April 2026
87,007
6,853
20,376
16,275
-
130,511
Moonpig
-
-
16,551
-
-
16,551
Greetz1
6,439
2,046
-
4,064
-
12,549
Experiences
80,568
4,807
3,825
12,211
-
101,411
Net book value as at 30 April 2026
87,007
6,853
20,376
16,275
-
130,511
1 The movement in Greetz goodwill between periods is a result of foreign exchange revaluation.
2 Technology and development costs include assets under construction of £4,962,000 (2025: £5,125,000).
Goodwill
Trademark
Technology and development costs1,2
Customer relationships2
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
Moonpig
-
-
15,075
-
-
15,075
Greetz
6,333
2,854
-
5,098
11
14,296
Experiences
80,568
5,535
4,691
17,145
-
107,939
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 was restated to reflect the transfer between customer relationships and technology and development costs of fully-amortised Greetz technology costs and their subsequent disposal. The asset had a nil net book value as at 1 May 2023 and therefore there was no impact to the income statement or balance sheet.
Goodwill, trademarks and customer relationship assets relate to the acquisitions of Greetz in 2018 and Experiences in 2022, and were recognised on business combinations. Technology and development costs at Moonpig and Experiences 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. Software intangible assets include accounting and marketing software purchased by the Group and software licence fees from third-party suppliers.
The remaining useful economic lives of these assets are as follows:
2026
2025
Trademarks
Greetz - arising on acquisition
2 years and 4 months
3 years and 4 months
Experiences - arising on acquisition
6 years and 3 months
7 years and 3 months
Technology and development costs
Moonpig and Experiences - internally generated
Range from 3 years and 0 months to 0 years and 1 month
Range from 3 years and 0 months to 0 years and 1 month
Experiences - arising on acquisition
Fully amortised
0 years and 3 months
Customer relationships
Greetz - arising on acquisition
4 years and 4 months
5 years and 4 months
Experiences - arising on acquisition
Range from 3 years and 3 months to 0 years and 3 months
Range from 4 years and 3 months to 1 year and 3 months
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 its annual impairment test of the goodwill allocated to the Greetz and Experiences segments, as at 30 April 2026. The estimated future cash flows are based on the approved plan, including the FY27 budget, for the three years ending 30 April 2029. 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. 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.
The long-term growth rates and pre-tax discount rates used to calculate the value in use are set out in the table below:
Greetz CGU
Experiences CGU
2026
2025
2026
2025
Discount rate1
14.3%
13.7%
14.5%
13.5%
Long-term growth rate2
2.0%
2.0%
2.0%
2.0%
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.
2 The long-term growth rate is used to extrapolate cash flows beyond the five year plan period.
There continues to be positive headroom for the goodwill allocated to the Greetz CGU as at 30 April 2026 and there is no reasonable possible change in key assumptions, including those relating to future sales performance, that would lead to an impairment.
The impairment review undertaken as at 30 April 2026 for the Experiences CGU indicated that there was positive headroom when comparing the value in use calculation to the carrying value of the CGU (FY25: an impairment charge of £56.7m was recognised). Headroom on the goodwill allocated to the Experiences CGU of £18.4m represents an increase since both 30 April 2025 (£1.6m) and 31 October 2025 (£3.4m) reflecting cost reductions implemented in H1 FY26, a sustained improvement in trading from November 2025 onwards and further reductions in operating expenses and capital expenditure implemented during the final quarter of the year.
The impairment assessment remains a major source of estimation uncertainty based on the sensitivity analysis and has a significant risk of resulting in a material adjustment to the carrying amount within the year ending 30 April 2027. In accordance with paragraph 125 of IAS 1, the FY26 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.
The Group has identified the following key assumption as having the most significant impact on the Experiences value in use calculation:
Experiences CGU
2026
2025
Revenue compound annual growth rate (CAGR)1
1.4%
2.7%
1 The compound annual growth rate represents the average yearly growth rate over the pre-perpetuity period.
The revenue compound annual growth rate of 1.4% (historical rates of 0.1% as at 31 October 2025 and 2.7% as at 30 April 2025) is based on our assessment of current and expected market conditions, informed by external sources, adjusted to reflect historical under-performance versus market forecasts and the anticipated impact of the Group's strategy on future growth.
The Group has performed sensitivity analysis to assess the impact of a change in the key assumption on the VIU.
The Group modelled the impact of a decrease in forecast revenue growth. The revenue sensitivity reflects a reduction of 10% in the first year of the forecast period, commencing 1 November, 5% for the following 18 months, 2.5% for the following 12 months and then flat in the remaining pre-perpetuity growth period. This results in a 4.0%pts decrease in the forecast revenue CAGR.
The sensitivity applied 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 2026.
The results of this sensitivity analysis is summarised below:
Experiences CGU
2026
2025
£m
£m
Original headroom
18.4
1.6
Impairment using a 4.0%pts decrease in the forecast revenue CAGR1 (2025: 2.2%pts)
(21.1)
(11.8)
1 The compound annual growth rate represents the average yearly growth rate over the pre-perpetuity period. As at 31 October 2025, the Group adopted a more conservative revenue CAGR assumption for sensitivity analysis, reflecting H1 performance. Whilst the Group delivered a materially improved revenue performance in H2, the sensitivity assumptions have been left unchanged. Should this improvement be sustained, the sensitivity scenarios may be revised in future periods.
The Group assessed the change in the forecast revenue CAGR that would be required for the recoverable amount to equal the carrying amount. A reduction of 0.8%pts in the forecast revenue CAGR, after considering the consequential impact on the cash flows used in the VIU calculation, would eliminate the remaining headroom and result in the recoverable amount being equal to the carrying value of the CGU.
In addition, the Group assessed the impact on the value in use calculation of a 1%pt increase in the discount rate. The discount rate was not identified as having a significant impact on the value in use calculation; under this scenario headroom reduced from £18.4m to £13.3m (2025: headroom reduced from £1.6m to an impairment of £2.5m).
In both the key assumption sensitivity, breakeven and discount rate scenarios, no mitigating actions have been modelled within the forecasted cashflows.
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 2026) identified two transition-related climate risks with potential revenue and cost implications. The analysis considered three scenarios: business as usual (>4oC by 2100); an unequal world (2.5oC by 2100); and the Paris Agreement Aligned (1.5oC 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 FY29. This impact is not reflected in the base case cash flow forecasts used in the impairment assessment. Instead, a sensitivity analysis was performed by applying the estimated carbon tax costs to the base case cash flows from FY29 onwards. Under this sensitivity, headroom for the Experiences CGU and Greetz CGU remained at £11.3m and £73.4m 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.
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
improvements
Computer equipment
Right-of-
use assets plant and machinery (Note 20)
Right-of-use
assets land
and buildings (Note 20)
Total
£000
£000
£000
£000
£000
£000
£000
£000
Cost
As at 1 May 2025
3,966
8,233
4,168
11,008
2,431
1,787
21,998
53,591
Additions
27
2,891
78
521
518
131
384
4,550
Disposals
-
(128)
(40)
-
(537)
-
-
(705)
Transfer
-
-
-
(816)
-
-
816
-
Foreign exchange
-
10
25
40
13
20
85
193
As at 30 April 2026
3,993
11,006
4,231
10,753
2,425
1,938
23,283
57,629
Accumulated depreciation
As at 1 May 2025
2,514
6,066
3,739
4,371
1,909
990
10,767
30,356
Depreciation charge
165
1,482
227
1,067
394
445
2,491
6,271
Disposals
-
(128)
(40)
-
(537)
-
-
(705)
Transfer
-
-
-
(594)
-
-
594
-
Foreign exchange
-
7
25
10
12
13
23
90
As at 30 April 2026
2,679
7,427
3,951
4,854
1,778
1,448
13,875
36,012
Net book value as at 30 April 2026
1,314
3,579
280
5,899
647
490
9,408
21,617
Freehold property
Plant and machinery
Fixtures and fittings
Leasehold
improvements
Computer equipment
Right-of-use assets plant and machinery (Note 20)
Right-of-use
assets land
and buildings (Note 20)1
Total
£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
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 for 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.
14 Inventories
2026
2025
£000
£000
Raw materials and consumables
1,205
1,368
Finished goods
8,693
9,704
Total inventory
9,898
11,072
Less: Provision for write off of:
Raw materials and consumables
(157)
(204)
Finished goods
(2,225)
(2,388)
Net inventory
7,516
8,480
15 Trade and other receivables
2026
2025
£000
£000
Current:
Trade receivables
1,924
1,647
Less: provisions
(280)
(179)
Trade receivables - net
1,644
1,468
Other receivables
1,355
1,227
Prepayments
3,480
3,163
Total current trade and other receivables
6,479
5,858
Trade receivables represent amounts due from customers for services provided in the ordinary course of business. They are typically due for settlement within 30 days and are therefore classified as current assets. The Group recognises a loss allowance for trade receivables in accordance with IFRS 9, measured using the expected credit loss model to reflect the estimated lifetime credit losses on outstanding balances.
Other receivables comprise accrued income, representing the Group's right to consideration for services provided but not yet invoiced at the reporting date and rebates receivable from suppliers.
Prepayments represent amounts paid or invoiced in advance for goods or services relating to future periods.
The movements in provisions are as follows:
2026
2025
£000
£000
As at 1 May
(179)
(243)
Charge for the year
(105)
-
Utilised
4
11
Released
-
53
As at 30 April
(280)
(179)
Trade and other receivables are primarily 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 credit risk of its receivables to be low with Group revenue derived from electronic payment processes (including credit card, debit card, PayPal, iDEAL and Single Euro Payments Area), with most receipts reaching the bank accounts in one to two days.
At 30 April 2026, the Group had net trade receivables of £1,644,000 (2025: £1,468,000). 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
2026
2025
£000
£000
Up to 30 days
1,619
1,407
Past due:
30 to 90 days
153
22
More than 90 days
152
218
Gross
1,924
1,647
Less: provisions
(280)
(179)
Net trade receivables
1,644
1,468
2026
2025
£000
£000
Non-current other receivables:
Other receivables
1,613
1,605
Total non-current trade and other receivables
1,613
1,605
Non-current other receivables relate to security deposits in connection with leased property.
16 Cash and cash equivalents
2026
2025
£000
£000
Cash and bank balances
6,331
9,777
Cash equivalents
2,756
2,872
Total cash and cash equivalents
9,087
12,649
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.
2026
2025
£000
£000
Pound Sterling
5,163
8,180
Euro
2,499
3,777
Australian Dollar
1,114
194
US Dollar
311
498
Total cash and cash equivalents
9,087
12,649
17 Trade and other payables
2026
2025
£000
£000
Current
Trade payables
14,490
20,671
Other payables
782
1,116
Other taxation and social security
10,719
8,126
Accruals
30,882
23,686
Total current trade and other payables
56,873
53,599
Current trade payables, other taxation and social security and accruals represent liabilities for goods and services provided prior to the year end where payment is not yet due and therefore were not settled as at the reporting date.
Current other payables primarily represents amounts due under the Group's share buyback programme in respect of shares purchased in the open market by the Group's broker that remain unsettled at the reporting date.
Current trade and other payables are recognised initially at fair value and subsequently measured at amortised cost. 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.
2026
2025
£000
£000
Non-current
Other payables
638
638
Other taxation and social security
867
1,926
Total non-current trade and other payables
1,505
2,564
Non-current other payables represents a deposit payable to a third party under the sublease arrangement for the Herbal House head office. The balance is classified as non-current as settlement is not expected within twelve months of the reporting date.
Non-current other taxation and social security comprises the employer NI obligations arising on share-based payment awards. The liability is measured at the reporting date based on the Company's share price and reflects amounts expected to be settled more than twelve months after the reporting date.
18 Provisions for other liabilities and charges
Other provisions
Dilapidations provisions
Total
£000
£000
£000
As at 1 May 2025
2,641
2,153
4,794
Charged in the year
2,110
384
2,494
Utilisation
(183)
-
(183)
Release of provisions in the year
(816)
-
(816)
Foreign exchange
6
10
16
As at 30 April 2026
3,758
2,547
6,305
Analysed as:
Current
3,695
-
3,695
Non-current
63
2,547
2,610
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
Current provisions
Includes provisions arising in the ordinary course of business that are expected 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 November 2027.
19 Contract liabilities
In all material respects, current deferred revenue at 30 April 2025 and 30 April 2026 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 Leases
The Group has right-of-use assets which are held in property, plant and equipment.
2026
2025
£000
£000
Net book value of owned property, plant and equipment
11,719
11,207
Net book value of right-of-use assets
9,898
12,028
Total property, plant and equipment
21,617
23,235
The Group has subleased part of its leased premises, with the sublease classified as an operating lease. Lease income recognised as Other Income in the profit or loss during the year was £1,358,000. (2025: £1,344,000). The sublease expires in November 2027.
Right-of-use assets
Right-of-use assets plant and machinery
Right-of-use assets land and buildings
Total
£000
£000
£000
Net book value at 1 May 2024
1,083
13,579
14,662
Additions
-
111
111
Modifications
251
-
251
Depreciation charge for the period
(534)
(2,439)
(2,973)
Foreign exchange
(3)
(20)
(23)
Net book value at 30 April 2025
797
11,231
12,028
Additions
131
384
515
Transfer
-
222
222
Depreciation charge for the period
(445)
(2,491)
(2,936)
Foreign exchange
7
62
69
Net book value at 30 April 2026
490
9,408
9,898
Lease liabilities
Lease liabilities
Total
£000
£000
As at 1 May 2024
16,329
16,329
Cash flow
(3,902)
(3,902)
Foreign exchange
48
48
Interest and other1
1,023
1,023
As at 30 April 2025
13,498
13,498
Cash flow
(3,776)
(3,776)
Foreign exchange
71
71
Interest and other1
653
653
As at 30 April 2026
10,446
10,446
1 Interest and other within lease liabilities comprises modifications and additions to lease liabilities as well as interest on leases as disclosed in Note 7.
2026
2025
£000
£000
Current
3,330
3,214
Non-current
7,116
10,284
Total lease liabilities
10,446
13,498
Lease liabilities maturity analysis
2026
2025
Maturity analysis - contractual undiscounted cash flows
£000
£000
Within one year
3,720
3,748
Within one and two years
2,190
3,684
Within two and three years
1,354
2,160
Within three and four years
1,340
1,324
Within four and five years
1,340
1,309
Beyond five years
1,505
2,764
Total contractual cash flows
11,449
14,989
Amounts recognised in the consolidated income statement:
2026
2025
£000
£000
Depreciation of right-of-use assets
(2,936)
(2,973)
Interest on lease liabilities
(522)
(660)
Expenses relating to short-term leases and low-value assets
(147)
(175)
Total expenses
(3,605)
(3,808)
21 Borrowings
2026
2025
£000
£000
Current
83
111
Non-current
106,660
94,985
Total borrowings
106,743
95,096
The Group's debt facilities consist of a £180,000,000 committed revolving credit facility (the "RCF"), with a maturity date of 28 February 2029. 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 2026 the Group had drawn down £104,000,000 and €4,500,000 of the available revolving credit facility (2025: £93,000,000 and €4,500,000). There was a foreign exchange loss on borrowings during the year of £65,000 (2025: £90,000 gain).
Certain Group companies have given a guarantee in respect of the Group's £180,000,000 revolving credit facility. The guarantees expose the guarantor entities to potential obligations in the event of default under the facility arrangements.
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 4.0% and 4.5% on total notional of £75.0m until 31 October 2027.
Derivative type
Execution date
Notional amount
Start date
Maturity date
Underlying asset
Strike rate
Interest rate cap
2 June 2025
£50.0m
01/05/2026
31/10/2026
SONIA
4.50%
Interest rate cap
6 November 2025
£25.0m
30/11/2025
31/10/2026
SONIA
4.00%
£75.0m
31/10/2026
31/10/2027
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 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 since 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:
2026
2025
£000
£000
Within one year
83
111
Within one and two years
-
-
Within two and three years
106,660
-
Within three and four years
-
94,985
Within four and five years
-
-
Beyond five years
-
-
Total borrowings
106,743
95,096
1 Total borrowings include £83,000 (2025: £111,000) in respect of accrued unpaid interest and are shown net of capitalised borrowing costs of £1,238,000 (2025: £1,848,000).
The table below details changes in liabilities arising from financing activities, including both cash and non-cash changes.
Borrowings
Total
£000
£000
As at 1 May 2024
118,365
118,365
Cash flow
(32,251)
(32,251)
Foreign exchange
(90)
(90)
Interest and other1
9,072
9,072
As at 30 April 2025
95,096
95,096
Cash flow
3,288
3,288
Foreign exchange
65
65
Interest and other1
8,294
8,294
As at 30 April 2026
106,743
106,743
1 Interest and other within borrowings comprises amortisation of capitalised borrowing costs and the interest expense in the year, see Note 7.
22 Share-based payments
Share-based payment expenses recognised in the income statement:
2026
2025
£000
£000
LTIP
3,675
1,158
DSBP
151
386
SAYE
282
295
Share based payment charge (before employers NI)
4,108
1,839
Employers NI1
(592)
1,632
Total share-based payment charge
3,516
3,471
1 The credit in NI this year reflects a true up to take into account the Group's latest expectation of the NI which will be due on shares as they vest using the share price at the reporting date, 30 April 2026.
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. Volatility is calculated using the historical information of the Company's share price.
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 expense is adjusted accordingly, with any expenses recognised in the income statement. Activity in relation to these awards during the period included new awards granted on 1 July 2025 under the existing scheme which will vest on 1 July 2028 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 7,717,504 (2025: 11,514,466), with an expected maximum vesting profile (stated net of forfeitures since award) as follows:
FY27
FY28
FY29
Total
Share options granted on 4 July 2023
1,821,063
-
-
1,821,063
Share options granted on 19 September 2023
1,852,192
-
-
1,852,192
Share options granted on 2 July 2024
-
2,239,537
-
2,239,537
Share options granted on 1 July 2025
-
-
1,804,712
1,804,712
The below tables give the assumptions applied to the options granted in the period and the shares outstanding:
July 2025
Valuation model
Stochastic and Black-Scholes and Chaffe
Weighted average share price (pence)
227.50
Exercise price (pence)
0.00
Expected dividend yield
0%
Risk-free interest rate
3.81%/3.94%
Volatility
41.93/36.32%
Expected term (years)
3.00/2.00
Weighted average fair value (pence)
133.23/227.50
Attrition
0%
Weighted average remaining contractual life (years)
3.17
2026
2025
LTIP awards
Number
of share options
Number
of share options
Outstanding as at 1 May
11,514,466
9,326,856
Granted
2,066,114
3,962,477
Exercised
(280,160)
(93,822)
Forfeited
(5,582,916)
(1,681,045)
Outstanding as at 30 April
7,717,504
11,514,466
Exercisable as at 30 April
-
-
The significant increase of share options that have been forfeited during this financial year is primarily attributable to 2,697,422 (2025: £nil) shares lapsing due to the departure of the former CEO. Additionally 1,414,452 shares lapsed as a result of performance conditions that were not met in relation to the July 2022 and October 2022 awards.
The decrease in the number of shares granted this financial year in comparison to the previous year is due to no shares being granted to the CEO (2025: 967,268) as well as the effect of the increase in the share price on awards granted.
The weighted average market value per ordinary share of LTIP options exercised during the year was £2.13 (2025: £1.83).
The weighted average remaining contractual life of LTIP awards outstanding at the year end was 1.98 years (2025: 2.42 years).
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. 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 outstanding number of share options at the end of the year is 316,989 (2025: 540,885), with an expected vesting profile (stated net of forfeitures since award) as follows:
FY27
FY28
FY29
Total
Share options granted on 4 July 2023
25,310
-
-
25,310
Share options granted on 2 July 2024
-
117,859
-
117,859
Share options granted on 1 July 2025
-
-
173,820
173,820
July 2025
Valuation model
Black-Scholes
Weighted average share price (pence)
227.50
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)
227.50
Attrition
0%
Weighted average remaining contractual life (years)
2.17
2026
2025
DSBP
Number
of share options
Number
of share options
Outstanding as at 1 May
540,885
386,842
Granted
189,968
240,414
Exercised
(255,593)
(86,371)
Forfeited
(158,271)
-
Outstanding as at 30 April
316,989
540,885
Exercisable as at 30 April
-
-
The significant increase of share options that have been forfeited during this financial year is primarily attributable to 113,592 (2025: £nil) shares lapsing due to the departure of the former CEO.
The weighted average market value per ordinary share of DSBP options exercised during the year was £2.15 (2025: £2.05).
The weighted average remaining contractual life of DSBP awards outstanding at the year end was 1.64 years (2025: 1.15 years).
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 FY23 awards were granted on 8 September 2022 and vested on 1 October 2025, 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 FY26 awards on 24 July 2025, which will potentially vest on 1 October 2028 on the same terms.
The outstanding number of share options at the end of the year is 942,023 (2025: 1,059,706), with an expected vesting profile (stated net of forfeitures since award) as follows:
FY27
FY28
FY29
Total
Share options granted on 28 July 2023
574,564
-
-
574,564
Share options granted on 26 July 2024
-
191,899
-
191,899
Share options granted on 24 July 2025
-
-
175,560
175,560
The below tables give the assumptions applied to the options granted in the year and the shares outstanding:
July 2025
Valuation model
Black-Scholes
Weighted average share price (pence)
213.00
Exercise price (pence)
178.00
Expected dividend yield
1.41%
Risk-free interest rate
3.90%
Volatility
43.63%
Expected term (years)
3.00
Weighted average fair value (pence)
70.34
Attrition
15.0%
Weighted average remaining contractual life (years)
2.42
2026
2026
2025
2025
Number
of share options
Weighted average exercise price
Number
of share options
Weighted average exercise price
SAYE
(£)
(£)
Outstanding as at 1 May
1,059,706
1.31
1,009,635
1.37
Granted
184,836
1.78
272,636
1.50
Exercised
(156,046)
1.57
(2,991)
1.17
Cancelled
(115,007)
1.34
(142,228)
1.46
Forfeited
(31,466)
1.36
(77,346)
2.01
Outstanding as at 30 April
942,023
1.35
1,059,706
1.31
Exercisable as at 30 April
-
-
-
-
The weighted average remaining contractual life of SAYE awards outstanding at the year end was 0.89 years (2025: 1.39 years).
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.
2026
2025
Pre-IPO awards
Number of shares
Number of shares
Outstanding as at 1 May
-
1,413,971
Exercised
-
(1,413,971)
Outstanding as at 30 April
-
-
Exercisable as at 30 April
-
-
The weighted average market value per ordinary share of pre-IPO options exercised during the year was £nil (2025: £1.77).
23 Share capital and reserves
The Group considers its capital to comprise its ordinary share capital, share premium, merger reserve, retained earnings, own shares held reserve, share-based payment reserve, foreign exchange translation reserve, hedging reserve and capital redemption reserve. 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 2026 is:
2026
2026
2025
2025
Number of shares
£000
Number of shares
£000
Allotted, called-up and fully paid ordinary shares of £0.10 each
As at 1 May
333,845,736
33,384
343,310,015
34,331
Issue of shares during the period
-
-
1,597,155
159
Shares cancelled during the period
(27,779,906)
(2,778)
(11,061,434)
(1,106)
As at 30 April
306,065,830
30,606
333,845,736
33,384
The Group undertakes share repurchase programmes through resolutions passed by the Company's shareholders. At the September 2025 AGM, a resolution was passed to repurchase up to maximum of 33,014,540 of its ordinary shares (September 2024 AGM: 34,362,148).
The Group executed two share buyback programmes during the year ended 30 April 2026, the first commenced on 2 May 2025 and the second on 7 November 2025. All shares repurchased were transferred to the registrar for cancellation, either during the year or shortly following the year-end. Upon cancellation the consideration was transferred from the own shares held reserve to retained earnings and the nominal value of the shares transferred from share capital to the capital redemption reserve. Across the two programmes, activity was as follows:
2026
2025
Share repurchases in year
Total ordinary shares repurchased (number of shares)
27,692,903
11,377,505
Proportion of opening issued share capital repurchased (%)
8.3%
3.3%
Consideration excluding fees and duties (£'000)
59,791
24,826
Consideration including fees and duties (£'000)
60,210
25,000
Average effective purchase price per share including fees and duties (pence)
217.42
219.73
Cash flow in year
Own shares repurchased for cancellation in FY25 (£'000)
736
24,264
Own shares repurchased for cancellation in FY26 (£'000)
59,724
-
Total cash outflow (£'000)
60,460
24,264
Amount pending settlement at year end (£'000)
486
736
Cancellation of shares
Own shares repurchased for cancellation in FY25 (number of shares)
316,071
11,061,434
Own shares repurchased for cancellation in FY26 (number of shares)
27,463,835
-
Total shares cancelled in the year (number of shares)
27,779,906
11,061,434
Transferred to the registrar for cancellation post year end (number of shares)
229,068
316,071
In the year ended 30 April 2026, nil ordinary shares (2025: 1,597,155) were issued for the settlement of share-based payments. From the start of FY26 the Group has transitioned to settling obligations under employee share plans through market purchases of shares, subject to the prevailing share price. As a result, the settlement of these awards did not give rise to an increase in the Company issued share capital.
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 (2025: £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.
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 and either subsequently cancelled or held in treasury by the Group's EBT. 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.
The EBT acquires and holds shares in the Company for the purpose of satisfying obligations arising under the Group's share-based payment schemes. During the financial year, the Group transitioned to settling obligations under employee share schemes through market purchases of shares. Awards exercised during the period were therefore satisfied using shares held by the EBT. The EBT is consolidated in the Group's financial statements in accordance with IFRS 10 'Consolidated Financial Statements', as the Group is considered to control the trust. When awards vest or are exercised, the EBT transfers the relevant shares to employees. This settlement does not result in the issue of new shares and therefore does not increase the Company's issued share capital. As at 30 April 2026 the EBT held 2,018,713 shares, representing 0.66% of our called-up share capital.
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.
2026
2026
2025
2025
Number of shares
£000
Number of shares
£000
Own shares held as at 1 May
(316,071)
(738)
-
-
Shares transferred from the EBT to employees
689,768
1,523
-
-
Own shares purchased for treasury
(2,708,481)
(5,827)
-
-
Own shares purchased for cancellation
(27,692,903)
(60,210)
(11,377,505)
(25,000)
Own shares cancelled
27,779,906
60,460
11,061,434
24,262
Own shares held as at 30 April
(2,247,781)
(4,792)
(316,071)
(738)
Other reserves
Other reserves represent the share-based payment reserve, the foreign currency translation reserve, the hedging 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 translating subsidiaries with a functional currency other than Sterling.
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
reserve
Capital redemption reserve
Total other reserves
£000
£000
£000
£000
£000
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 expense (excluding NI)
1,839
-
-
-
1,839
Deferred tax on share-based payment transactions
1,773
-
-
-
1,773
Current tax on share-based payment transactions
32
-
-
-
32
Shares transferred to employees to satisfy share option exercise
(6,429)
-
-
-
(6,429)
Own shares cancelled
-
-
-
1,106
1,106
As at 30 April 2025
39,983
(1,508)
(90)
1,106
39,491
As at 1 May 2025
39,983
(1,508)
(90)
1,106
39,491
Other comprehensive income/(expense):
Exchange differences on translation of foreign operations
-
173
-
-
173
Cash flow hedges:
Fair value changes in the year
-
-
271
-
271
Cost of hedging reserve
-
-
159
-
159
Fair value movements on cash flow hedges transferred to profit and loss
-
-
-
-
-
Deferred tax on other comprehensive income
-
-
(108)
-
(108)
Share-based payment expense (excluding NI)
4,108
-
-
-
4,108
Deferred tax on share-based payment transactions
(1,298)
-
-
-
(1,298)
Current tax on share-based payment transactions
72
-
-
-
72
Shares transferred to employees to satisfy share option exercise
(944)
-
-
-
(944)
Own shares cancelled
-
-
-
2,778
2,778
As at 30 April 2026
41,921
(1,335)
232
3,884
44,702
24 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
2026
2025
£000
£000
Financial assets at amortised cost:
Current assets
Trade and other receivables1
15
2,999
2,695
Cash
16
9,087
12,649
Non-current assets
Trade and other receivables1
15
1,613
1,605
Financial assets at fair value:
Current assets
Financial derivatives
7
5
Non-current assets
Financial derivatives
403
-
14,109
16,954
Financial liabilities at amortised cost:
Current liabilities
Trade and other payables2
17
46,154
45,473
Experiences merchant accrual
37,212
40,374
Lease liabilities
20
3,330
3,214
Borrowings
21
83
111
Non-current liabilities
Trade and other payables2
17
638
638
Lease liabilities
20
7,116
10,284
Borrowings
21
106,660
94,985
201,193
195,079
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 and trade payables (including other receivables and payables)
The fair value approximates to the carrying amount, primarily because of the short maturity of these instruments.
Experiences merchant accrual
The fair value approximates to the carrying amount because the merchant accrual is measured at the present value of estimated future voucher redemptions discounted at the incremental borrowing rate at inception, which reflects market interest rates for liabilities with similar terms and credit risk. As a result, there is no material difference between the carrying amount and the fair value of the merchant accrual.
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 of money and the risks specific to the instrument.
Lease liabilities
The fair value approximates to the carrying amount because the lease liabilities are measured at the present value of future lease payments discounted at the incremental borrowing rate at inception, which reflects market interest rates for liabilities with similar terms and credit risk. As a result, there is no material difference between the carrying amount and the fair value of the lease liabilities.
The fair values of bank loans and other loans approximate to the carrying value, as reported in the balance sheet, gross of amortised costs of £1,238,000 (2025: £1,848,000). 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 has a maturity date of 28 February 2029. 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 table 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
1 year
Due within
1 and 3 years
Due between
3 and 5 years
Due after
5 years
Total
At 30 April
2026
2026
£000
£000
£000
£000
£000
£000
Borrowings1
-
107,898
-
-
107,898
106,660
Interest on borrowings
7,410
13,774
-
-
21,184
83
Lease capital repayments
3,330
3,171
2,478
1,467
10,446
10,446
Lease future interest payments
390
373
202
38
1,003
-
Experiences merchant accrual
39,246
-
-
-
39,246
37,212
Trade and other financial liabilities2
46,154
638
-
-
46,792
46,792
Non-derivative financial liabilities
96,530
125,854
2,680
1,505
226,569
201,193
Interest rate caps
431
-
-
-
431
410
Derivative financial assets
431
-
-
-
431
410
Contractual cash flows
Due within
1 year
Due within
1 and 3 years
Due between
3 and 5 years
Due after
5 years
Total
At 30 April
2025
2025
£000
£000
£000
£000
£000
£000
Borrowings1
-
-
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
-
Experiences merchant accrual
42,918
-
-
-
42,918
40,374
Trade and other financial liabilities2
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 assets
5
-
-
-
5
5
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 contractual undiscounted cash flows relating to financial liabilities to be disclosed in the table above. As disclosed in Note 21, the Group's borrowings are drawn under a revolving credit facility. For the purposes of the contractual cash flow disclosure, the borrowings are presented in the period in which repayment is contractually due under the terms of the facility. The contractual interest cash flows associated with these borrowings are based on forecast utilisation of the facility and estimated future SONIA and EURIBOR rates over the expected life of the borrowings. As a result, the interest amounts disclosed above represent management's estimate of future interest cash flows and may differ from the actual amounts ultimately paid.
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 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 2026 and 30 April 2025, these exposures were not material to the Group.
The Group applies strategies to manage 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 loss on borrowings during the year of £65,000 (2025: £90,000 gain).
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 2026 the Group had drawn down £104,000,000 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 date
Notional amount
Start date
Maturity date
Underlying asset
Strike rate
Interest rate cap
2 June 2025
£50.0m
01/05/2026
31/10/2026
SONIA
4.50%
Interest rate cap
6 November 2025
£25.0m
30/11/2025
31/10/2026
SONIA
4.00%
£75.0m
31/10/2026
31/10/2027
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:
2026
2025
Derivative financial assets
£000
£000
Derivatives designated as hedging instruments
Interest rate cap - cash flow hedges
410
5
Total derivatives financial assets
410
5
2026
2025
£000
£000
Current and non-current:
Current
7
5
Non-current
403
-
Total derivatives financial assets
410
5
Cash flow interest rate swap and cap
Hedge ineffectiveness arises where movements in the hedging instrument do not fully offset movements in the underlying hedged exposure. No hedge ineffectiveness requiring recognition in finance expense arose during the year (2025: £nil).
Moonpig Group's primary floating rate interest exposure as at 30 April 2026 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 2026 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:
2026
Interest rate cap 4.5%
Interest rate cap 4.0%
Carrying amount of derivatives (£000)
7
403
Changes in fair value of the designated hedged item (£000)
-
271
Notional amount (£000)
50,000
25,000
Hedge ratio
1:1
1:1
Maturity date
31/10/2026
31/10/2027
2025
Interest rate cap 3.0%
Interest rate cap 5.0%
Interest rate cap 4.5%
Carrying amount of derivatives (£000)
-
-
5
Changes in fair value of the designated hedged item (£000)
6
(164)
(36)
Notional amount (£000)
70,000
42,500
25,000
Hedge ratio
1:1
1:1
1:1
Maturity date
30/11/2024
28/11/2025
30/04/2026
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 2024
1,002
Cash (inflow)
(801)
Non-cash movement
(196)
As at 30 April 2025
5
Cash outflow
145
Non-cash movement
260
As at 30 April 2026
410
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% 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
2026
2026
2025
2025
£000
£000
£000
£000
10% strengthening of Sterling against the Euro
(514)
(929)
(263)
(1,223)
10% weakening of Sterling against the Euro
565
1,022
289
1,345
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 21.
2026
2025
£000
£000
1.0% increase in SONIA market interest rates (2025: 1.0%)
(652)
(519)
1.0% decrease in SONIA market interest rates (2025: 1.0%)
654
638
1.0% increase in EURIBOR market interest rates (2025: 1.0%)
(45)
(68)
1.0% decrease in EURIBOR market interest rates (2025: 1.0%)
45
68
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 provides financial flexibility to return incremental excess capital to shareholders by way of dividends and share repurchases.
25 Commitments and contingencies
The Group entered a financial commitment in respect of a supplier of cut flowers of £290,000 (2025: £213,000) and rental commitments of £252,000 (2025: £91,000) which are due within one year.
During the year the Group entered a financial commitment in respect of future stock purchases of £1,372,000 (2025: £1,912,000). These purchases are spread across three years and will be settled by November 2027.
26 Related party transactions
Transactions with related parties
There were no related party transactions requiring disclosure in the year ended 30 April 2026.
Compensation of key management personnel
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 Non-Executive Directors, the Executive Directors (CEO and CFO) and other members of the Group Leadership Team.
2026
Re-presented 20251
£000
£000
Short-term employee benefits
4,392
5,010
Post-employment pension and medical benefits
130
134
Share-based payment schemes2
1,709
1,689
Total compensation relating to key management personnel
6,231
6,833
1 2025 comparatives have been re-presented to include the Non-Executive Directors and Group Leadership Team following a change in our definition of the CODM, see Note 3 for further details.
2 The current year share-based payment expense above includes a credit of £1,359,000 (2025: £nil) in relation to shares forfeited upon resignations.
27 Related undertakings
A full list of subsidiary undertakings, as defined by the Companies Act 2006 and included within the scope of consolidation under IFRS 10 as at 30 April 2026, is disclosed below. Titan Midco Limited is held directly by the Company and all other subsidiary undertakings are held indirectly.
The equity shares held comprise ordinary shares or common stock. The Group's effective ownership interest in each subsidiary undertaking is 100%.
Subsidiary undertakings
Number
Country of incorporation
Principal activity
Cards Holdco Limited1
12170467
England and Wales
Trading company, management services
Moonpig.com Limited1
03852652
England and Wales
Trading company
Experience More Limited1
03883868
England and Wales
Trading company
Titan Midco Limited1
13014525
England and Wales
Holding company
The Moonpig Group plc Employee Benefit Trust4
55699
Jersey
Employee benefit trust
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
Moonpig Australia Pty Limited3
692814074
Australia
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.
3 Registered office address is KPMG, Tower 3, Level 38, 300 Barangaroo Avenue, Sydney, NSW, 2000, Australia
4 Registered office address is International House, 41 The Parade, St Helier, JE2 3QQ, Jersey.
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 2006. This Company has given statutory guarantee to Titan Midco Limited under Section 479C of the Companies Act 2006.
The Moonpig Group plc Employee Benefit Trust is a Jersey-resident trust and its standalone financial statements are unaudited as there is no statutory audit requirement for Jersey trusts.
28 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 financial statements for the year ended 30 April 2026:
• On 1 May 2026, the Group completed the transfer of all trade, assets and liabilities of Experience More Limited to Moonpig.com Limited, both wholly owned subsidiaries within the Group. The transaction represents an internal reorganisation undertaken to simplify the Group structure and align the Experiences business with the Group's operating model. Following completion of the transfer, Experience More Limited ceased trading. The net assets transferred had a carrying value of £4.7m at the date of transfer. The transaction will have no impact on the consolidated net assets of the Group, nor on the presentation of results by operating segment for FY27.
• On 7 May 2026, the Group announced a programme to repurchase up to £32.5m of ordinary shares, to run until 31 October 2026 unless amended by the Company. This represents the first of two buyback programmes planned for FY27, to be executed in H1 and H2 respectively, totalling £65.0m. The Company's policy is that share repurchases will only be undertaken where they utilise excess capital, create shareholder value and enhance earnings per share. Between 7 May 2026 and 23 June 2026, the Group repurchased a further 3,937,599 shares of 10 pence each, representing 1.3% of the Company's issued share capital as at 30 April 2026, for total consideration of £8,527,000 including transaction costs and stamp duty. The average price paid was 215.1p per ordinary share.
• On 7 May 2026, the Group's EBT purchased 1,996,871 of the Company's ordinary shares at a total cost of £4.3m. These shares were acquired to satisfy expected obligations arising in FY27 under the Group's employee share plans.
Alternative Performance Measures
Adjusted EBITDA
Adjusted EBITDA is a measure of the Group's operating performance and debt servicing ability. It is calculated as operating profit adding back depreciation and amortisation and Adjusting Items (Note 6 of the Group financial statements).
Depreciation and amortisation can fluctuate, is a non-cash adjustment and is not linked to the ongoing trade of the Group.
Adjusting Items are excluded as management believe their nature distorts trends in the Group's underlying earnings. This is because they are often one-off in nature or not related to underlying trade.
A reconciliation of operating profit to Adjusted EBITDA is as follows:
2026
2025
£000
£000
Operating profit
79,578
13,289
Depreciation and amortisation (including acquisition amortisation)
25,015
26,800
Adjusting Items (within Adjusted EBITDA)
-
56,700
Adjusted EBITDA
104,593
96,789
Adjusted EBIT
Adjusted EBIT is the operating profit and before Adjusting Items.
2026
2025
£000
£000
Operating profit
79,578
13,289
Adjusting Items
7,589
64,551
Adjusted EBIT
87,167
77,840
Adjusted PBT
Adjusted PBT is the profit before taxation and before Adjusting Items.
2026
2025
£000
£000
PBT
68,939
2,958
Adjusting Items
7,589
64,551
Adjusted PBT
76,528
67,509
Adjusted PAT
Adjusted PAT is the profit/(loss) after taxation, before Adjusting Items and the tax impact of these adjustments. The Adjusted PAT is used to calculate the underlying basic earnings per share in Note 11 of the Group financial statements.
2026
2025
£000
£000
PAT
51,718
(11,080)
Adjusting Items
7,589
64,551
Tax impact of the above
(1,912)
(1,977)
Adjusted PAT
57,395
51,494
Net debt
Net debt is a measure used by the Group to reflect available headroom compared to the Group's secured debt facilities. The calculation is as follows:
2026
2025
£000
£000
Borrowings
(106,743)
(95,096)
Cash and cash equivalents
9,087
12,649
Lease liabilities
(10,446)
(13,498)
Net debt
(108,102)
(95,945)
Ratio of net debt to Adjusted EBITDA
The ratio of net debt to last twelve months Adjusted EBITDA helps management to measure its ability to service debt obligations. The calculation is as follows:
2026
2025
£000
£000
Net debt
(108,102)
(95,945)
Adjusted EBITDA
104,593
96,789
Net debt to Adjusted EBITDA
1.03:1
0.99:1
Free Cash Flow
Free Cash Flow is defined as net cash generated from operating activities, less cash flow from investing activities; as a practical expedient and for greater consistency with IAS 7 classification of cash flows it is not adjusted to exclude bank interest received. The calculation is as follows:
2026
2025
£000
£000
Net cash generated from operating activities
89,272
79,201
Cash flow from investing activities
(15,773)
(13,148)
Free Cash Flow
73,499
66,053
Operating cash conversion
Operating cash conversion is operating cash flow divided by Adjusted EBITDA, expressed as a ratio. The calculation of operating cash conversion is as follows:
Year ended
30 April 2026
Year ended
30 April 2025
£m
£m
Profit before tax
68.9
3.0
Add back: Net finance costs
10.6
10.3
Add back: Adjusting Items (excluding share-based payments)
7.6
64.6
Add back: Depreciation and amortisation (excluding acquisition amortisation)
17.4
18.9
Adjusted EBITDA
104.6
96.8
Less: Capital expenditure (fixed and intangible assets)
(15.9)
(13.3)
Adjust: Impact of share-based payments1
4.1
1.8
Add back: (Increase)/decrease in inventories
1.0
(1.4)
Add back: Decrease in trade and other receivables
(0.6)
0.8
Add back: Decrease in Experiences merchant accrual
(4.6)
(6.8)
Add back: Increase/(Decrease) in trade and other payables
3.7
4.4
Operating cash flow
92.3
82.3
Operating cash conversion
88%
85%
Add back: Capital expenditure (fixed and intangible assets)
15.9
13.3
Add back: Loss on disposal and impairment of goodwill
-
56.7
Less: Adjusting Items (excluding share-based payments and acquisition amortisation)
-
(56.7)
Less: Research and development tax credit
(0.5)
(0.2)
Cash generated from operations
107.7
95.4
1 Comprises the add-back of non-cash share-based payment expenses of £4.1m (FY25: £1.8m) relating to operation of post-IPO Remuneration Policy, which are not classified as an Adjusting Item.
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