(Alliance News) - Moonpig Group PLC on Thursday backed full-year guidance, despite "challenging" markets boosted by strong sales over some of its peak sales periods.

The internet-based greetings card and gifting platform said its expectations for revenue and adjusted earnings before interest, tax, depreciation and amortisation for the year ending April are unchanged.

This was despite the external environment remaining "challenging".

Moonpig said it highly cash generative and remains focused on deleveraging.

"We continue to expect that we will reduce the ratio of net debt to adjusted Ebitda to below 1.5x by 30 April 2024," it pledged.

Moonpig said trading has remained in line with expectations across all of its brands.

Growth has been underpinned by strong performance at Moonpig, which saw volume growth across the Christmas, Valentine's Day and Mother's Day peak trading seasons, the company said.

Moonpig Plus subscription membership service now has over one quarter of a million subscribers and Greetz Plus has been equally well received by its Dutch customers since it was introduced in January 2024, Moonpig said.

Chief Executive Nickyl Raithatha commented: "We continue to innovate to attract and retain our loyal customers and remain well positioned to benefit from the long-term structural market shift to online."

In addition, Moonpig announced a new four-year, multi-currency revolving credit facility of GBP180 million with a syndicate of banks. The previous GBP175 million term loan and GBP80 million RCF have been fully repaid and cancelled.

The new RCF is fully available for general corporate purposes, Moonpig said.

The new RCF has an initial maturity date of February 29, 2028 with an option to extend by one year, subject to lender approval.

Shares in Moonpig fell 0.2% to 179.00 pence each midday on Thursday.

By Jeremy Cutler, Alliance News reporter

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