Moonpig Group PLC (LSE:MOON) shares fell over 10% to 217.5p after the online greetings cards group's CEO stepped down alongside results that showed lower than expected revenue growth for the past year.
CEO Nickyl Raithatha handed in his notice after seven years in the role, which included floating the company on the stock exchange in 2021. He will continue to serve as CEO until a successor is appointed.
Sales for the year to 30 April were up 2.6% to £350.1 million, which compared to consensus forecasts of 4% growth, as the strength of the core Moonpig brand was offset by continued declines in the Greetz brand in the Netherlands and the Experiences arm, which includes Red Letter Days.
Despite this slower growth, profits were better than expected, with adjusted pre-tax profit rising 16% to £67.5 million, above forecasts.
Core Moonpig revenues grew 8.6% year-on-year, while those for Greetz fell 4.7% and Experiences dropped 19.3%.
As the Experiences division faced challenges, a non-cash goodwill impairment charge of £56.7 million was taken in the first half and "proactive steps" are being taken to reposition the proposition by a strengthened divisional management team.
With free cash flow up 8.4% to £66.1 million, a £25 million share buyback was completed in the second half of the year, with plans for a new £60 million programme during the new financial year.
Raithatha said "strong trading momentum" has been maintained since year-end, with Moonpig delivering its biggest ever Father’s Day, and saying the group's "clear market leadership puts us in a strong position to capitalise on the long-term shift to online".
On his departure, chair Kate Swann said: "Under his leadership, the group has reinforced its position as the category-defining online platform for greeting cards and gifting. Nickyl leaves the group in a strong position".