Moonpig shares crash despite record annual turnover

by Jonathan Adams

It expects turnover to reach between £250m and £260m this financial year, which would be down 32 per cent compared with the previous year

Moonpig shares crashed even record annual turnover by the company. It was the worst day for the company since joining the stock market in February after it warned roaring sales have slowed as Covid restrictions have loosened.

Moonpig was a pandemic ‘winner’ when its services were suddenly in hot demand as lockdowns shut shops and people turned to online shopping.

People unable to buy cards in shops turned to Moonpig, which lets customers upload handwritten messages to online versions of cards and send gifts from the likes of Lego and Cath Kidston.

In the 12 months to the end of April, it delivered 50.9m orders, including 139,000 on Mothering Sunday.

But the reopening of the economy has normalised trade. It expects turnover to reach between £250m and £260m this financial year, which would be down 32 per cent compared with the previous year.

Although it said it had not seen an exodus of customers, it will be scrabbling to keep new users. Peel Hunt analysts downgraded Moonpig from ‘buy’ to ‘hold’ on the back of the muted outlook.

The numbers for the year to April 30 had been strong, with revenues rising 113pc to £368m and profits rising from £31.8m to £32.9m.

Shares dropped 9.3 per cent, or 39.6p, to 385p, leaving it valued at £1.3billion.

Investors cheered a host of other firms who reported that business was picking up now that life is returning to normal.

A jump in sales of takeaway sandwiches and other ‘food to go’ meals has boosted Greencore – up by 50 per cent on last year to £360m in the 13 weeks to June 25. It is also only nearly 3 per cent down than the same period of 2019. Shares gained 3.3 per cent, or 4.3p, to 133.2p, as the Dublin firm reported it is testing recyclable sandwich packaging.

Croda was the top gainer on the FTSE 100 – rising 5.6 per cent, or 440p, to 8266p – after it said full-year results will smash expectations.

The chemicals group, which makes ingredients used by the cosmetics, construction and oil industries and Omega 3 fish oil concentrates, reported a 41 per cent half-year rise in profits as sales rose 39 per cent to £934m. Business will be boosted by a contract to work on Covid vaccines.

Big gains for some of the results reporters failed to lift the wider market, however. The Footsie ended 0.4 per cent lower, down 29.35 points, to 6996.08 and the FTSE 250 shed 0.2 per cent, or 56.18 points, to 22877.01, snapping a five-day winning streak.

This article is for information purposes only.
Please remember that financial investments may rise or fall and past performance does not guarantee future performance in respect of income or capital growth; you may not get back the amount you invested.
There is no obligation to purchase anything but, if you decide to do so, you are strongly advised to consult a professional adviser before making any investment decisions.

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