Moonpig Gr Regulatory News (MOON)

14 March 2024

Moonpig Group plc

Trading Update and New Revolving Credit Facility

Trading update

Moonpig Group plc (the "Group"), the leading online greeting card and gifting platform in the UK and the Netherlands, today provides an update on its trading performance in the current financial year ending 30 April 2024.

Trading performance has remained in line with expectations across all of our brands. Growth has been underpinned by strong performance at Moonpig, which saw volume growth across the Christmas, Valentine's Day and Mother's Day peak trading seasons. Accordingly, whilst the external environment remains challenging, expectations for full year revenue and Adjusted EBITDA remain unchanged.

We continue to make good progress with the deployment of customer-facing technology features that we expect to drive revenue growth. Nine months following its launch, our Moonpig Plus subscription membership service now has over one quarter of a million subscribers and Greetz Plus has been equally well received by our Dutch customers since it was introduced in January 2024. During the financial year to date, customers have used our innovative card creativity features to enhance nine million personalised greeting cards, bringing them to life with audio and video messages, stickers, digital gift experiences and AI-generated message inspiration.

The Group is highly cash generative and we remain focused on deleveraging. We continue to expect that we will reduce the ratio of net debt to Adjusted EBITDA to below 1.5x by 30 April 2024.

Nickyl Raithatha, CEO, commented: "We are delighted that revenue remains in consistent growth at the Moonpig brand. Our continued focus on technology investment means that Moonpig Group is now consistently delivering year-on-year growth in revenue and profit. This is underpinned by our resilient, profitable and cash generative business model, leveraging our unique use of data to drive customer loyalty. We continue to innovate to attract and retain our loyal customers and remain well positioned to benefit from the long-term structural market shift to online."

New Revolving Credit Facility

The Group is also pleased to announce that it has agreed a new four-year, committed, multi-currency revolving credit facility ("RCF") of £180m with a syndicate of banks. The Group's previous £175m term loan and £80m revolving credit facilities have been fully repaid and cancelled. The new RCF is fully available for general corporate purposes.

The new RCF has an initial maturity date of 29 February 2028 with an option to extend by one year, subject to lender approval. Borrowings are subject to interest at a margin over the relevant currency reference interest rate dependent on net leverage, with margins of between 2.00%-2.50% at net leverage levels of 1.0x-2.0x. The facility covenants are a maximum ratio of net debt to Adjusted EBITDA of 3.5x until 30 April 2025 and 3.0x thereafter and a minimum Adjusted EBITDA interest cover ratio of 3.5x for the term of the facility. Each covenant is tested semi-annually.

Enquiries

About Moonpig

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 is the online market leader in cards in both of its markets and is also the UK market leader in gift experiences.

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.