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Wednesday 13 January 2021

Moonpig announces £1b London IPO

MoonpigI’ve been using Moonpig for quite a few years. Indeed Photobox before them. I like to use my own photos on greeting cards. But Moonpig has a massive range of its own designs – many very topical! Conversely, the number of outlets on the High Street selling greeting cards has dwindled. Over Xmas, yet another – Paperchase – called it a day.

TrumpMoonpig has had a stonking C-19 – delivering 45m cards in the UK and Netherlands last year. UK is 2/3rd of their business. Moonpig reckons that only 10% of cards in the UK are currently purchased on line – and they have about 60% of that market. However Moonpig reckons that market will double to 20% in 2021. But Moonpig is not all about cards. Gifts – like wine and cholate – make up about half of their revenues. Moonpig is now the 5th largest florist in the UK sending 200,000 bouquets on Mother’s Day.

I’ve always found their service exemplary. Very easy to use. Fast turnaround and realistic prices.

So ‘What’s not to like?’ In the 6 months to 31st Oct 20, Moonpig revenues grew 135% to £155.9m. It made ‘underlying profits’ of £44.4m in full year to 30th Apr 20. So the only way that Moonpig could even dream of a £1b valuation is to get investors to think of it as a technology company – rather than just an online version of a card shop. Moonpig suggests that its algorithms are behind its success in tailoring its addon gifts to suit the needs of clients. As well as generating extra revenue from birthday reminders etc.

Whatever the views on valuation, Moonpig provides a great service and is an extremely welcome addition to the UK Stock Market.

Posted by: Richard Holway

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