Expected intention to float announcement

12 January 2021

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR PART, DIRECTLY OR INDIRECTLY, IN OR INTO OR FROM THE UNITED STATES, CANADA, JAPAN OR AUSTRALIA OR ANY OTHER JURISDICTION WHERE SUCH DISTRIBUTION WOULD BE UNLAWFUL.

This announcement is not a prospectus nor an offer of securities for sale in any jurisdiction, including in or into the United States, Canada, Japan or Australia.

Neither this announcement, nor anything contained herein, nor anything contained in the Registration Document (as defined herein) shall form the basis of, or be relied upon in connection with, any offer or commitment whatsoever in any jurisdiction. Investors should not subscribe for or purchase any shares referred to in this announcement or the Registration Document except solely on the basis of the information contained in a prospectus in its final form (together with any supplementary prospectus, if relevant, the "Prospectus"), including the risk factors set out therein, that may be published by Moonpig Group plc (the “Company”), a new company to be inserted as the ultimate holding company of Cards Holdco Limited and its subsidiaries and subsidiary undertakings (the Company, together with its subsidiaries and subsidiary undertakings, the "Moonpig Group" or "Moonpig"), in due course in connection with a possible offer of ordinary shares in the Company (the "Shares") and the possible admission to listing of such Shares to the premium listing segment of the Official List of the Financial Conduct Authority (the "FCA") and to trading on the main market for listed securities of the London Stock Exchange plc. A copy of any Prospectus will, if published, be available for inspection from the Company's registered office at 10 Back Hill, London EC1R 5EN, England, and on Moonpig Group's website at www.moonpig.group, subject to certain access restrictions.

Cards Holdco Limited (current holding company of the Moonpig Group)

Announcement of Intention to Publish a Registration Document and Expected Intention to Float on the London Stock Exchange

Moonpig, a leading online greeting card and gifting platform comprising the Moonpig brand in the UK and the Greetz brand in the Netherlands, is today announcing the intended publication by Cards Holdco Limited of a registration document (the “Registration Document”) and its potential intention to undertake an initial public offering (the "IPO" or the "Offer"). Should Moonpig proceed with the Offer, the Company will apply for admission of its Shares to the premium listing segment of the Official List of the FCA and to trading on the London Stock Exchange's main market for listed securities (together, "Admission").

Moonpig Group Highlights

  • Moonpig Group is a leading online greeting card and gifting platform, comprising the Moonpig brand in the UK and the Greetz brand in the Netherlands. In both markets, Moonpig Group is the clear online market leader in cards, holding a 60% market share in the UK among online card specialists in 2019 and a 65% market share in the Netherlands among the top three online card players in 2019, according to OC&C estimates.
  • Moonpig Group’s leading customer proposition includes an extensive range of over 20,000 cards, a curated range of gifts, personalisation features, and next day delivery offering. This has enabled Moonpig Group to build a large and loyal customer base efficiently and profitably, demonstrated by its 12.2 million active customers as at 31 October 2020 and strong customer retention, with 78% of Moonpig Group’s revenue in the year ended 30 April 2020 derived from previously acquired customers.
  • Moonpig Group offers its products through its proprietary technology platforms and apps, which utilise unique data science capabilities designed by Moonpig Group to optimise and personalise the customer experience and provide scalability. Moonpig Group benefits from its dataset of approximately 160 million cumulative historical transactions, which have enabled it to capture and leverage the purchase intent of its customers and provide a unique user experience, with approximately 45 million cumulative personalised reminders set by customers for important occasions and events as of 31 October 2020.
  • Moonpig Group’s operational excellence is underpinned by an asset light and inventory light business model, which combines lean, process designed automation with an efficient supply chain strategy consisting of a mix of in-house 2 and outsourced functions. Moonpig Group has flexible capacity arrangements with its third-party suppliers, allowing it to economically flex and scale its operations up to three times its normal dispatch volumes during peak periods.
  • Moonpig Group has demonstrated unbroken revenue growth since inception, and grew revenues at a mid-teens CAGR over the ten year period ended April 2020. Most recently, revenue from Moonpig Group grew at a CAGR of 20% from the year ended 30 April 2018 to the year ended 30 April 2020.
  • For the year ended 30 April 2020, Moonpig Group’s revenue was £173.1 million, with £126.5 million contributed by the Moonpig segment and £46.6 million contributed by the Greetz segment. This represents 44% growth for Moonpig Group year-on-year, compared to the year ended 30 April 2019. During the year ended 30 April 2020, Moonpig Group’s underlying EBITDA was £44.4 million, representing an underlying EBITDA Margin of 26%. For the six months ended 31 October 2020, Moonpig Group’s revenue was £155.9 million, with £120.8 million contributed by the Moonpig segment and £35.1 million contributed by the Greetz segment. This represents 135% growth for Moonpig Group compared to the six months ended 31 October 2019. Moonpig Group’s business is also highly cash generative, due to its high margins, an attractive negative working capital profile and relatively low capital expenditure requirements.
  • Moonpig Group operates in the large and underpenetrated gifting market, which includes the sale of greeting cards and gifts. According to OC&C, the overall value of customer spending on gifting in the UK, the Netherlands and the Republic of Ireland, which are Moonpig Group’s core markets, was approximately £57 billion in 2019, spread across a wide range of categories and gifting occasions. Moonpig Group holds a leading position within the online cards market which provides it with a competitive advantage in the market for card-attached gifting, and access to standalone gifting, larger market opportunities that are moving online.
  • Moonpig Group is led by a dynamic leadership team, who are fully dedicated to the continued success of the Company. The establishment of a new leadership team over the last 3 years, including Nickyl Raithatha as CEO in June 2018, Andy MacKinnon as CFO in January 2019 and Kate Swann as Chair in August 2019, has accelerated Moonpig Group’s growth and sharpened its focus on becoming the gifting companion.

Download the full Expected intention to float announcement here.