Moonpig has posted a 6.6% increase in its annual revenue to £341.1m in the year to 30 April.

The online card and gift retailer also announced a 5% year-on-year rise in adjusted profit before tax, to £58.2m.

Moonpig cited stronger trading offset in part by higher interest charges and the amortisation of technology platform investments as the reason behind its improved profits. Trading since the start of the year has remained in line with Moonpig’s expectations, with both new and existing customer orders in growth.

The group also stated that it remains “strongly cash generative”, with operating cash inflows of £74.2m, up from a total of £56.2m in the previous year.

“We are delighted that the group has delivered full-year growth in both revenue and profit, with trading performance strengthening across our peak trading periods in the second half of the year,” said Moonpig CEO, Nickyl Raithatha.

“This has been driven by our multi-year investments in technology and innovation, which continue to foster extraordinary customer loyalty.

“Moonpig is well positioned to benefit from the long-term structural market shift to online.”

In the context of the current macroeconomic environment, the card retailer is forecasting revenue growth in the next financial year at a “mid to high single digit percentage rate”.

In the medium-term, Moonpig has targeted double digit percentage annual revenue growth, as well as an adjusted EBITDA margin rate of approximately 25% to 26%, and growth in its adjusted earnings per share at a “mid-teens” percentage rate.

Lead equity analyst at Hargreaves Lansdown, Sophie Lund-Yates, commented: “Moonpig has seen full year sales rise 6.6%, amid what has been a tough backdrop. Profits have come along for the ride too.

“There was a lot of fanfare surrounding Moonpig’s listing on the London Stock Exchange in recent years, but the growth trajectory isn’t as high octane as some would have wanted. Better-managed stock levels and the leveraging of AI to produce more personalised cards are both good to see, but a longer run of positive progress wouldn’t go amiss.

“One of the primary concerns is a lack of real buffer between the likes of Moonpig and other rivals – both existing and future. For now though, the group’s put in a resilient showing, even if the shares are unlikely to be on a rocket ship to the moon.”

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