Moonpig Group

Website: Moonpig Group
Index: FTSE 250
EPIC: MOON
Supersector: Retail
Sector: General Retailers
Subsector: Specialty Retail
Market Cap: £653.85M
Payout Frequency: Semi-Annual

Moonpig Group Dividend Analysis and Summary

Key Dividend Details

Dividend declared: Interim dividend of 1.25p per share (up 25% year-on-year from 1.00p).
Ex-dividend date: 19/02/2026 (derived from the record date).
Record date: 20/02/2026.
Payment date: 19/03/2026.
Cash cost: c.£4.0m (as disclosed).
Dividend policy: progressive, with dividends to grow at least in line with Adjusted EPS; medium-term dividend cover target of 3.0x–4.0x (FY25 total dividend 3.00p, covered 5.0x by Adjusted Basic EPS).

Supporting Financial Context

H1 FY26 Adjusted EPS: 6.9p (+13.1% YoY).
H1 FY26 Adjusted EBITDA: £45.0m; margin 26.7%.
Last twelve months Free Cash Flow: £64.5m.
Net leverage: 1.24x at 31 Oct 2025; on track for c.1.0x by year-end.
Shareholder returns: £30.0m buyback completed in H1; intention to repurchase up to £60.0m in FY26 in total.
Distributable reserves (parent company): £522.8m at 31 Oct 2025.

Structural or Policy Changes

Share buybacks: £30m completed in H1 at an average price of 221.7p; second £30m programme commenced in H2 FY26. Buybacks reduce share count and support per-share dividend capacity.
EBT share purchases to satisfy employee plans (reduces dilution; separate from buybacks).
No demergers, M&A or share consolidations announced; capital allocation hierarchy unchanged (organic investment, then dividends, selective M&A, then buybacks).

Dividend Sustainability and Outlook

Sustainability: The interim dividend is modest versus cash generation (LTM FCF £64.5m) and sits comfortably within leverage and covenant headroom. Parent company distributable reserves are ample.
Growth trajectory: A 25% increase to the interim, combined with policy to move cover toward 3–4x from 5.0x (FY25), implies capacity for further progressive increases provided Adjusted EPS and FCF continue to grow. Ongoing EPS-accretive buybacks also support per-share dividend growth.
Support from performance: H1 revenue up 6.7%, Adjusted PBT up 11.4%, and strong margins indicate that trading supports both the dividend and buybacks, albeit with seasonally higher cash generation in H2.
Capital allocation fit: Dividends rank ahead of buybacks in the stated hierarchy; current programmes signal available excess capital after organic investment.

Risks and Flags Relevant to Dividend Stability

Experiences segment execution risk: H1 revenue down 8.9%; goodwill headroom of only £3.4m indicates sensitivity to assumptions. Prolonged underperformance could modestly weigh on group cash generation, though the segment is smaller than core Moonpig/Greetz.
Seasonality and working capital: FCF is second-half weighted (H1 FCF £8.6m), making year-end delivery important for funding returns and leverage targets.
Operational and regulatory dependencies: Potential changes to postal service obligations in the UK and technology/security risks are acknowledged by the Board; mitigations are in place but remain structural exposures.
Rising finance costs: FY26 net finance cost guided to c.£11m; leverage policy (~1.0x) and interest rate caps provide some protection.
Balance sheet presentation: Consolidated net liabilities arise from merger reserve accounting, but this does not constrain dividends given strong parent-level distributable reserves.

Dividends Used in Calculation:

Ex-Dividend Date	Payment Date	Type	Amount	Currency
20/02/2025	20/03/2025	Interim	1.00p	GBX
23/10/2025	20/11/2025	Final	2.00p	GBX

Total (Annual Dividends Per Share): 3.00p

Dividend Yield = Annual Dividends Per Share (3.00p) ÷ Share Price (224p) = 1.34%

Ex Dividend Date	Payment Date	Type	Amount	Currency
19/02/2026	19/03/2026	Interim	1.2500p	GBX
23/10/2025	20/11/2025	Final	2.00p	GBX
20/02/2025	20/03/2025	Interim	1.00p	GBX

Year

Number of Shares:

Payment	Paid	Amount
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