Moonpig, a leading online greeting card and gifting platform comprising the Moonpig brand in the UK and the Greetz brand in the Netherlands, is today announcing the intended publication by Cards Holdco Limited of a registration document and its potential intention to undertake an initial public offering. Should Moonpig proceed with the Offer, the Company will apply for admission of its Shares to the premium listing segment of the Official List of the FCA and to trading on the London Stock Exchange’s main market for listed securities.
Moonpig Group Highlights
- Moonpig Group is a leading online greeting card and gifting platform, comprising the Moonpig brand in the UK and the Greetz brand in the Netherlands. In both markets, Moonpig Group is the clear online market leader in cards, holding a 60% market share in the UK among online card specialists in 2019 and a 65% market share in the Netherlands among the top three online card players in 2019, according to OC&C estimates.
- Moonpig Group’s leading customer proposition includes an extensive range of over 20,000 cards, a curated range of gifts, personalisation features, and next day delivery offering. This has enabled Moonpig Group to build a large and loyal customer base efficiently and profitably, demonstrated by its 12.2 million active customers as at 31 October 2020 and strong customer retention, with 78% of Moonpig Group’s revenue in the year ended 30 April 2020 derived from previously acquired customers.
- Moonpig Group offers its products through its proprietary technology platforms and apps, which utilise unique data science capabilities designed by Moonpig Group to optimise and personalise the customer experience and provide scalability. Moonpig Group benefits from its dataset of approximately 160 million cumulative historical transactions, which have enabled it to capture and leverage the purchase intent of its customers and provide a unique user experience, with approximately 45 million cumulative personalised reminders set by customers for important occasions and events as of 31 October 2020.
- Moonpig Group’s operational excellence is underpinned by an asset light and inventory light business model, which combines lean, process designed automation with an efficient supply chain strategy consisting of a mix of in-house and outsourced functions. Moonpig Group has flexible capacity arrangements with its third-party suppliers, allowing it to economically flex and scale its operations up to three times its normal dispatch volumes during peak periods.
- Moonpig Group has demonstrated unbroken revenue growth since inception, and grew revenues at a mid-teens CAGR over the ten year period ended April 2020. Most recently, revenue from Moonpig Group grew at a CAGR of 20% from the year ended 30 April 2018 to the year ended 30 April 2020.
- For the year ended 30 April 2020, Moonpig Group’s revenue was £173.1 million, with £126.5 million contributed by the Moonpig segment and £46.6 million contributed by the Greetz segment. This represents 44% growth for Moonpig Group year-on-year, compared to the year ended 30 April 2019. During the year ended 30 April 2020, Moonpig Group’s underlying EBITDA was £44.4 million, representing an underlying EBITDA Margin of 26%. For the six months ended 31 October 2020, Moonpig Group’s revenue was £155.9 million, with £120.8 million contributed by the Moonpig segment and £35.1 million contributed by the Greetz segment. This represents 135% growth for Moonpig Group compared to the six months ended 31 October 2019. Moonpig Group’s business is also highly cash generative, due to its high margins, an attractive negative working capital profile and relatively low capital expenditure requirements.
- Moonpig Group operates in the large and underpenetrated gifting market, which includes the sale of greeting cards and gifts. According to OC&C, the overall value of customer spending on gifting in the UK, the Netherlands and the Republic of Ireland, which are Moonpig Group’s core markets, was approximately £57 billion in 2019, spread across a wide range of categories and gifting occasions. Moonpig Group holds a leading position within the online cards market which provides it with a competitive advantage in the market for card-attached gifting, and access to standalone gifting, larger market opportunities that are moving online.
- Moonpig Group is led by a dynamic leadership team, who are fully dedicated to the continued success of the Company. The establishment of a new leadership team over the last 3 years, including Nickyl Raithatha as CEO in June 2018, Andy MacKinnon as CFO in January 2019 and Kate Swann as Chair in August 2019, has accelerated Moonpig Group’s growth and sharpened its focus on becoming the gifting companion.
Nickyl Raithatha, chief executive officer of Moonpig Group, said: “Moonpig Group’s mission is to create moments that matter, helping people to connect by sharing meaningful cards and gifts. This is more important now than perhaps ever before. We have built a technology platform that harnesses data-science and AI at every point of our customers’ journey, making it as effortless as possible for them to be as thoughtful as possible.
The combination of our extensive range of personalised cards, curated gifts, high-speed logistics, and unique predictive insights into gifting intent, helps our 12 million loyal customers to remember, choose, and create the perfect card and gift for every occasion.
We are confident that Moonpig Group will continue to make gifting even more effortless for millions of people across the UK and internationally, and as the leaders of the accelerating shift to online now is the perfect time for us to bring the company to the public market.”
Kate Swann, chair of Moonpig Group, said: “Moonpig Group combines strong and sustained growth with excellent cash generation, in a market which is underpenetrated and moving online. I have been impressed by the management team, their innovation, and by the customer insight provided by Moonpig Group’s data. The Board is confident that Moonpig Group is well positioned to capitalise on its first mover advantage in the online card market and continue its strong momentum in the gifting segment, benefit from the continued human need for connections, and cycle-resilient customer spend on gifts and cards.”