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Moonpig shares tumble as card maker swings to £33m loss in first half of financial year

2025-10-16 03:30:58 By

Moonpig has reported a loss in the first half of its financial year, as the personalised card maker's experiences business takes longer than expected to recover. The FTSE 250 company's share price fell by 12 per cent in early trading on Tuesday, despite shares remaining up by 57 per cent this year.

Moonpig posted a pretax loss of £33.3m for the six months to 31 October, 2024, compared to a profit of £18.9m during the same period last year. The loss was attributed to a £56.7m goodwill impairment related to its experiences business, which partners with brands such as Slug and Lettuce, Hello Fresh and BrewDog, as reported by City AM.

The firm cited "challenging trading conditions" and "trading conditions remain challenging with significant macroeconomic headwinds" impacting the unit, leading to an extended timeline for aligning experiences revenue growth with its full potential. A "transformation plan" for experiences is reportedly operationally complete and has realised over £1m in cost savings, including relocating its head office, outsourcing non-core functions and building a new leadership team.

Basic earnings per share for Moonpig dropped to a negative 11.2p for the half year, compared to 4.1p a year earlier. On an adjusted basis, Moonpig’s profit came in nine per cent higher at £27.3m.

The company has elevated its medium-term forecast for adjusted pre-tax earnings (EBITDA) margin to between 25 and 27 percent, up from the previous range of 25 to 26 percent, an uplift attributed to "continued growth of high-margin revenue streams such as plus subscription fees" Moonpig recorded a revenue of £158 million for the six months, marking an increase of 3.8 percent year-on-year.

The postal card company, along with its Dutch counterpart Greetz which was acquired in 2018, registered approximately 200,000 new active customers during the half-year period, taking the total to 11.7 million. "Moonpig’s performance has been underpinned by robust growth in order volumes, powered by our multi-year investments in technology and innovation and the structural market shift to online," commented Nickyl Raithatha, Chief Executive of Moonpig.

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Domino's Pizza says Budget will cost it £3m - and it's big news for 38,000 workers

Domino's Pizza has projected a £3m tax burden resulting from the recent Budget, as it sets its sights on an aggressive expansion strategy to open numerous new outlets across the UK, as reported by City AM. "As with other major employers in the UK, the recent UK budget has significantly increased the cost of labour for both Domino’s Pizza and our franchise partners, who are particularly impacted," the company disclosed in a stock exchange notice today. "Although we have identified specific mitigation plans, we now believe that the annual impact for Domino’s Pizza will be £3m per annum from full-year 2025 onwards." The pizza giant, which employs over 38,000 staff through its franchises, will feel the effects of October’s Budget that raised national insurance rates for employers. This announcement was part of a broader profitability and growth framework unveiled by the pizza franchiser, which includes plans to launch hundreds of new stores. Domino's is targeting at least 1,600 stores generating £2bn in sales by 2025, and aims for 2,000 stores with £2.5bn in sales by 2033. Presently, the firm operates more than 1,350 stores in the UK and Ireland. To reach these ambitious goals, Domino's intends to invest between £3m-£4m annually in marketing, digital enhancements, and incentives for opening new franchise stores. Additionally, the company has committed to spending £4m-£5m each year to ensure "the continued stability and innovation of our technology platform, strengthening our cyber security and the commencement of the process of increasing our supply chain capacity". Following the Budget and increased investment, Peel Hunt analysts have reduced profit before tax forecasts for the company by approximately 11 per cent. The company's share price dropped 3.3 per cent after the announcement and has fallen nearly nine per cent since the beginning of the year.

Industry Professionals Decry Cancellation of Extra Bank Holiday in 2025

A recent announcement from Number 10 has confirmed that the proposed extra bank holiday in 2025 has been cancelled. Initially, there were speculations that an additional day off would be added to commemorate the conclusion of WWII, but this has been officially declared as not happening. Leaders in the UK's hospitality industry have expressed their disappointment with the government's choice to abandon the extra bank holiday. They argue that such days are crucial for generating additional revenue in their sector. Their sentiments mirror those from 2022, advocating for the permanent inclusion of an extra bank holiday to celebrate the late Queen's Platinum Jubilee. Martin Williams, a former figure in the M Restaurants and Gaucho group, has described the decision to cancel the 2025 holiday as "missed potential." Williams stated: "The additional bank holiday would have been a vital stimulus for the hospitality sector amidst the economic challenges posed by the recent budget. Local pubs and independent eateries would have greatly benefited from it—a missed opportunity indeed." A representative from UKHospitality told City AM: "Bank holidays are peak times when people in Britain prefer to dine out or take a mini-break, which naturally leads to an increase in sales for hospitality businesses. As the industry grapples with rising costs, high-demand periods like bank holidays, Easter, and summer vacations become even more significant for driving sales." A spokesperson for the Campaign For Real Ale added: "Bank holidays are golden opportunities for the beer and pub sector. They offer an additional day of support for public houses, social clubs, and taprooms seeking to enhance their business." "The pub industry continues to face financial hurdles, including soaring energy bills and escalating costs. CAMRA’s data indicates that pub enterprises are experiencing unprecedented turnover rates and are still confronting a severe decline in the number of licensees able to maintain their operations in the UK. “Public houses are essential for community unity, offering inviting spaces for social engagement and aiding in the fight against loneliness. They remain central to our neighborhoods, and bank holidays are an excellent occasion for people to gather at their local pub to enjoy a pint with loved ones.” The economic impact of additional bank holidays is significant, with most of the private sector ceasing operations for an extra day. Studies suggest that an extra bank holiday could cost the UK economy approximately £2.4 billion. A spokesperson for Number 10 remarked: "The 80th anniversaries of VE and VJ Day will be monumental occasions for our nation, as we unite to honor the memories of those who served and the legacy they have left us. "We are dedicated to commemorating these significant national events with the appropriate respect, which is why we have allocated over £10 million for events to mark these anniversaries.”

Manchester Airport owner reports record passenger numbers - but warns of challenges ahead

Manchester Airports Group (MAG), which encompasses Manchester, London Stansted, and East Midlands airports, has flown to new heights with its pre-tax profit hitting £139.6m for the first half of their financial year ending on 30 September, 2024. This marks an increase from the previous £115.9m, buoyed by a 6.9% rise in traffic to 37.3m passengers, as reported by City AM. MAG's success story also includes its subsidiary travel services business CAVU contributing to a revenue surge to £768.5m from £705.6m. Notably, Manchester Airport celebrated a milestone, managing 17.8m passengers during this period and reaching an unprecedented annual total of 30 million travellers in September for the first time ever. In comparison to international counterparts such as La Guardia New York and Melbourne Airport Australia, Manchester Airport establishes its stature by entering their league. Meanwhile, London Stansted broke its own record for passenger numbers in a half-year with 16.7m visitors. MAG also witnessed its busiest day on record during October when it serviced 107,000 passengers within a single 24-hour timeframe. Additionally, East Midlands Airport saw a steady flow of 2.8m individuals over the six months. Despite facing increased taxes and operational costs, MAG CEO Ken O'Toole highlighted the group's achievement stating: "Across the summer, one in five UK air passengers chose to fly through a MAG airport for business, leisure, to study or visit friends and family." "This is testament to the strength of our route networks, our commitment to providing great choice and value to all our customers, and to always striving to deliver a positive passenger experience." "While our industry faces challenges both in the UK and globally, such as increasing taxation and rising costs linked to the push towards full decarbonisation of air travel, MAG’s strong financial and operational performance makes us well-placed to drive forward our investment programmes as we continue to grow."

Harrods faces Christmas strike as hundreds of workers vote to walk out

Harrods, the renowned London department store reeling from the crisis, is gearing up for further turmoil as numerous employees have resolutely opted for strike action during the crucial Christmas period. Workers affiliated with the United Voices of the World (UVW) union are set to stage walkouts commencing at 8 pm on Friday, 20 December, continuing until Sunday, 22 December, and then resuming from 12 am on Boxing Day until 9.30 pm, as reported by City AM. The strike is expected to involve staff from retail, restaurant, kitchen, and cleaning departments. Harrods has maintained that UVW does not constitute a recognized union within the store, claiming any strikes would fail to have an effect. Despite this, UVW stated that their members "have had no option but to vote for strike yet again" following the refusal of Harrods' management "refuses to recognise or engage with their union for negotiations". Petros Elia, general secretary of United Voice of the World, remarked: "Contrary to what Harrods bosses say, we are still in a shameful period of their history." He continued, asserting that: "Their employees are still feeling the impact of a prevailing and deep-rooted toxic culture." Furthermore, he highlighted the disparities by stating: "Bosses at Harrods denying their dedicated workforce a Christmas bonuses and fair wages while lavishing obscene sums on its billionaire owners is proof." In a final rebuke, he added: "It’s outrageous that our members across retail, restaurant, kitchen and cleaning have had to vote to strike just to be heard." Lastly, he explained the workers' position: "The workers have been left with no choice but to strike because management refuses to engage with them or even recognise their union." "We call on Harrods to come to the table and negotiate so the store can remain open for Christmas shopping and continue to serve all Londoners this festive season." The strike action comes in the wake of ongoing revelations about former Harrods’ owner Mohamed Al Fayed. Al Fayed, who is accused of sexual offences against numerous women but was never charged during his lifetime, passed away last year at the age of 94.

Pizzeria Franco Manca confirms Liverpool opening date

Franco Manca, the popular pizzeria chain, is set to open a new branch in Liverpool. The company, which first opened its doors in 2008 on Market Row in Brixton Market, has since expanded to over 70 locations across the country. The new Liverpool restaurant will be housed in the former Rennies Art Gallery building in Bold Street, offering seating for 90 diners indoors and an additional 20 outside. The grand opening is scheduled for Saturday, December 7. The former art gallery has been under renovation for several weeks, with the plywood hoarding finally coming down last week. The menu features traditional favourites such as mozzarella and basil and cured ham and mushroom pizzas, alongside more unique offerings like truffle pesto-based pizzas with smoked burrata and mushrooms or spiced chicken with a roasted courgette base. To mark the opening, the restaurant will be giving away 1,000 free pizzas, reports the Liverpool Echo. The chain already has two restaurants in Manchester city centre, with another in Didsbury and another in the Trafford Centre.

On the Beach brings back dividends and launches £25m share buyback for investors

On the Beach has initiated a £25m share buyback and promised substantial full-year dividends for investors, following a surge in demand for its package holidays to record levels in 2024. The Manchester-based company announced plans to reintroduce a final dividend of 2.1p per share, marking the first full-year payout since the pandemic affected the travel sector, as reported by City AM. This decision comes after On the Beach reported record bookings for the third consecutive year, capitalizing on the travel boom that has swept across Europe in recent years. The company's total transaction value (TTV) reached £1.2bn, a 15% year-on-year increase, alongside revenue of £128.2m, up 14%. On an adjusted basis, pre-tax profit rose by 25% to £31m. In a statement to the market, On the Beach informed investors that its forward order book had reached record levels, with winter bookings to date up by 25%. "Current trends and strategy give us confidence that summer 2025 will be significantly ahead of summer 2024," the company added. Chief Executive Shaun Morton attributed the performance to a combination of initiatives, including the company's announcement of a landmark partnership deal with its long-term budget airline partner, Ryanair. "The partnership has facilitated an improved customer journey for those booking Ryanair flights as part of an On the Beach package, whilst enabling increased operational efficiency and a greater focus on areas of strategic value." "What’s more, the agreement and significant upgrades to our technology have supported a doubling of our addressable market, following the addition of city breaks to our offering alongside planned investment in Ireland."

Black Friday's late timing blamed for 'disappointing' fall in retail sales

The latest survey indicates a disappointing onset to the festive period for retailers, with an acknowledgment that sales downturn may appear more severe due to the Black Friday event occurring outside the survey's timeframe. According to the British Retail Consortium’s (BRC) sales monitor, there was a 3.3 per cent decline in year-to-November sales volumes compared to the 2.3 per cent rise seen last year, majorly impacted by the timing of Black Friday this time around, as reported by City AM. "While the majority of November’s data tells a disappointing tale for the retail sector, this reporting didn’t include Black Friday week," remarked Linda Ellett, UK head of consumer, retail & leisure at KPMG, noting hopes that consumers waiting for late November deals might offset the bleak figures. However, despite the timing of Black Friday, BRC's chief executive Helen Dickinson pointed out it was "undoubtedly a bad start to the festive season". The reported data showed a year-on-year fall of 2.1 per cent in non-food sales, attributed to "low consumer confidence and rising energy bills" by Dickinson. She also observed that spending on fashion was "particularly weak", proposing that many households had delayed buying winter clothing. Food sales experienced a less dramatic year-on-year growth of 2.4 per cent in November, dropping from last year's 7.6 per cent increase. "Retailers will be hoping that seasonal spending is delayed not diminished," Dickinson commented. The survey contributes to a series of reports indicating an economic slowdown following the government's first Budget.

Sainsbury's Employees to Receive Salary Boost Following Successful Holiday Season and Market Share Gain

Even though Sainsbury's reported a fifth straight Christmas of increased grocery market share, with a nearly 4% rise in sales, its shares slightly declined on Friday morning. CEO Simon Roberts informed investors: "Taste the Difference products were included in half of the large Christmas baskets, contributing to a 16% sales increase, surpassing all main competitors." He also noted a nearly 40% increase in party food sales at Sainsbury’s and that in the critical days leading up to Christmas, over 200 bottles of sparkling drinks were sold every minute, with more than a third being from the Taste the Difference range, as City AM reported. Over the six-week holiday period, retail sales rose by 3.8% year-on-year, while total sales increased by 3.7%. However, Sainsbury’s share price fell over 2% to 256.20p on Friday morning. Richard Hunter, Head of Markets at interactive investor, observed: "share price reactions to the updates have been mixed, with some investors choosing to disregard the Christmas period's success and focus on the upcoming challenges." In its announcement, Sainsbury’s credited part of its growth to its Nectar card prices. The company also affirmed that it is on track to achieve an additional profit of at least £100m in the three years up to FY26/27. It was revealed that a quarter of UK residents visited the Argos website during the Black Friday weekend, indicating a "significant year-on-year increase". The third quarter saw the largest sales in technology. Nevertheless, the toy market was lackluster, and demand in higher-priced categories like furniture and consumer electronics remained low. The supermarket chain stated it is making "good progress towards our goal of achieving £1bn in cost savings by March 2027". Sainsbury’s has announced a 5% pay increase for retail staff this year, divided into two increments in March and August. The company believes this will "help us navigate a challenging cost environment while continuing to lead the industry in employee compensation". Both Sainsbury’s and Argos employees will see their hourly wage rise to £12.45 in March and £13.70 in London, with a further increase to £12.60 per hour in August and £13.85 in London. Roberts explained: "Our team members are essential to our Sainsbury’s plan, and we are pleased to announce a 5% pay raise for our hourly-paid staff this year, in two stages, to help manage the tough cost inflation environment." "We are committed to rewarding our team well for their service and productivity, and we will be the highest-paying UK grocer from March," he added. This follows Roberts' warning in November about the government's national insurance increase leading to higher prices for consumers, adding £140m to the supermarket’s expenses. "In the supermarket sector, where prices are key to success, staying competitive comes at a cost. For Sainsbury, the investment in

Avanti West Coast achieves £1bn turnover despite ranking low on UK reliability charts

Despite being named one of the least reliable rail operators in Britain, Avanti West Coast's turnover exceeded £1bn last year. The train operator, a joint venture between Firstgroup and Italian rail firm Trenitalia, reported a turnover of £1.01bn for the 12 months to 31 March, 2024, an increase from £967.4m. However, Companies House filings reveal that pre-tax profit dipped from £12.8m to £12.3m over the same period. Avanti, which took over the west coast mainline from Virgin Trains in December 2019, is 70% owned by FirstGroup and 30% by Trenitalia, as reported by City AM. It operates services between London Euston and several cities including Birmingham, Liverpool, Manchester, and Glasgow. The accounts also show a dividend of £8.1m for the year, down from £11m. Passenger revenue totalled just over £1bn, up from £808.9m, with passenger numbers at 83% of pre-pandemic levels, up from 67%. Avanti West Coast returned a net payment of £21.9m to the Department for Transport (DfT) during the year, following a subsidy of £92.4m the previous year. According to the Office of Rail and Road, Avanti West Coast had the third worst reliability of all operators in Britain in the year to 31 March, 2024. In the past year, an equivalent of one in 15 trains (6.9%) were cancelled, including pre-emptive cancellations before 10pm the previous night due to crew shortages. Avanti West Coast's contract, which could last up to nine years, may be cut short by the government with just three months' notice after the initial three-year period. Meanwhile, the new Labour administration is devising a strategy to renationalise nearly all passenger rail services within five years. The plan involves transferring private train company contracts to Great British Railways, a new public body, as they expire. Avanti West Coast has expressed a 'singular focus' on service delivery. A board-approved statement read: "The company is working hard with a singular focus on delivering the service that customers expect." It also noted: "The company has reached an agreement with the relevant trade unions on the incremental use of rest day working for train drivers, which helps support operational resilience." Furthermore, the statement highlighted ongoing collaborations: "The company also continues to work with the DfT and other stakeholders on its plans to deliver long term improvements in customer experience and resilience."

TalkTalk may cut nearly 25% of consumer staff, including roles at Salford HQ

Nearly a quarter of TalkTalk's consumer staff, including some based at the company's Salford headquarters, are at risk of losing their jobs. It is estimated that around 130 out of 530 colleagues could face redundancy, equating to almost 25 per cent of the consumer team, the Manchester Evening News and BusinessLive have revealed. The company is expected to extend the redundancy consultation period over the Christmas fortnight. Last year, TalkTalk Group split its main operating business into three independent companies: TalkTalk Consumer, which serves over two million broadband customers, TalkTalk Business Direct, and PXC Communications, which provides services to other telecoms providers. Earlier this year, TalkTalk had warned it could potentially collapse unless a new finance deal was secured. In its July annual report, the directors expressed concerns about potential insolvency as early as 'August 2024 or sooner'. A source close to the company disclosed that following the demerger, the business is 'simplifying ways' to ensure a 'sustainable business model' for the future. The changes are expected to affect roles across the UK, particularly in centralised head office functions, reports the Manchester Evening News. While Soapworks in Salford Quays remains the company's HQ, it is unclear how many roles there could be impacted. It is understood that customers will not be affected by these changes. A spokesperson for TalkTalk commented: "This is the first stage in a multi-year transformation of our business to deliver differentiated service and product to our customers. We are simplifying our business to ensure that we can continue to offer great value connectivity to our millions of customers across the UK." "As part of this, we have made the difficult decision to launch a consultation about the future of some roles at TalkTalk's consumer business." The telecom firm's executives have been actively working to refinance the substantial £1bn debt accumulated since the company went private in 2020, amidst escalating costs and increased competition. In a positive turn for TalkTalk, August saw a tentative agreement on a transaction, providing the company with a £400m financial boost. Regarding the financing, they stated: "The proposed transaction will leave the company well-funded to deliver the respective strategic plans of PlatformX Communications (PXC) and TalkTalk, continuing to capitalise on their strong positions in the market." In the latest financial report up to February 29, it was disclosed that TalkTalk's consumer and PXC divisions employed approximately 1,857 individuals - 1,229 in administrative roles and another 628 in sales and customer management. Back in 2019, TalkTalk relocated its headquarters to the Soapworks building in Salford Quays, a site once home to Colgate-Palmolive's toothpaste, detergents, and dishwasher liquid production. The group said: "It's been amazing to be able to bring everyone together under one roof to create a world-class, state-of-the-art campus for our entire business." The company also operates from locations in Gateshead and London.