Moonpig Gr Regulatory News (MOON)

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

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

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

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

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

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

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.

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

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.

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:

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.

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%).

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.

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.

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

Consolidated Income Statement

For the year ended 30 April 2026

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

The accompanying notes are an integral part of these condensed consolidated financial statements.

Consolidated balance sheet

As at 30 April 2026

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

The accompanying notes are an integral part of these condensed consolidated financial statements.

Consolidated cash flow statement

For the year ended 30 April 2026

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:

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:

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

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

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

As at 30 April 2025