Moonpig Group PLC (LSE:MOON) announced its first-ever dividend with the release of its interim results for the six months to October 31.
Kicking off its new dividend policy, Moonpig declared an inaugural interim dividend of 1p per share. It follows Moonpig’s debut £25 million share buyback programme announced in October.
The ramping up of shareholder returns reflects the greeting card and gifting company’s improving cash position.
Net debt stood at £119.5 million at the interim’s close, compared to £125.1 million earlier in the year. Moonpig anticipates further reduction by the financial year-end.
The period was heavily lossmaking, although this was mainly attributed to a £57 million non-cash impairment of goodwill charge.
On an adjusted basis, Moonpig’s earnings increased 0.9% to £41.8 million, while group-wide revenue ran up 3.8% to £158 million.
Chief executive Nickyl Raithatha stated: "We are pleased to report continued growth in revenue for the group, driven by double-digit growth in the Moonpig brand.
“Moonpig's performance has been underpinned by robust growth in order volumes, supported by multi-year investments in technology and innovation and the structural market shift to online card and gifting."
Looking ahead, Moonpig maintained its full-year revenue expectations. Medium-term adjusted EBITDA margins are forecasted at 25% to 27%, with annual double-digit percentage growth in adjusted earnings per share.