You’d think fund mangers would have deployed degree of scepticism after years of overvalued businesses
Flotation fever is a dangerous condition, and the bout experienced in early 2021, we can now say, was severe. The cohort of stock market arrivals included Made.com (down 100% from its float price), Deliveroo (off 77%) and Dr Martens (47% lower). Now comes Moonpig. Floated at 350p, the online gifts and greetings cards retailer sits at 138p after Wednesday’s half-year update, which brought a revision to full-year in revenue forecasts from £350m to £320m
Moonpig seems reliably profitable – as Dr Martens is. One could even call the business model clever. The cards are printed only when the customer orders, which is terrific for cashflow, and the add-on gifts are a margin-enhancing opportunity to sell to a self-selecting audience.
