Moonpig Group PLC on Wednesday hailed its ‘transformational first full year’ as a listed company saying it ‘significantly outperformed’ the targets set out at its initial public offering in February last year.

Moonpig shares were down 5.1% at 232.60 pence each on Wednesday morning in London. The stock is down 34% from its IPO price of 350p.

For the financial year that ended April 30, the London-based online greeting card and gifting company said revenue fell by 17% to £304.3 million from £368.2 million the year before, but pretax profit rose 21% to £40.0 million from £32.9 million.

The company explained that the revenue fall reflects annualisation against periods of severe lockdown restrictions during financial year 2021, but revenue was ahead of company expectations at the start of the financial year. It added that it has been able to acquire new customers at a faster rate than before the start of Covid-19.

‘Our first full year as a listed company has been another transformational period for Moonpig Group - financially, operationally and strategically. We have significantly outperformed the targets set out at IPO, and recently announced the proposed acquisition of Buyagift, which will accelerate our journey to becoming the ultimate gifting companion,’ said Chief Executive Officer Nickyl Raithatha.

In addition, the retailer said it has seen ‘no material impact’ on gross margin rate from cost inflation, either for greeting cards or gifts. ‘There has been an increase in shipping costs, however this has been mitigated by the announcement of higher stamp prices by the UK regulated postal service, which has been passed on to customers,’ added the company.

Moonpig said it does not intend to pay dividends as it invests in growth. ‘We intend to keep capital structure and dividend policy under review and may revise these from time to time,’ the company said.

Looking ahead, Moonpig said it was satisfied with the start made to the new financial year and remains confident in existing expectations for trading in financial 2023. Based on the anticipated completion of the acquisition of Buyagift by the end of July 2022, it expects annual revenue for the enlarged Moonpig group of £350 million.

Moonpig announced in May that it agreed to buy Buyagift for £124 million in cash. It is on track to complete this by end of July. Buyagift is a UK gift experience platform.

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