Moonpig denies sale rumours
Moonpig founder and chairman Nick Jenkins has dismissed speculation that the business is to be sold to Photobox, a venture capital-backed online photo business.
The story, reported in the Sunday Times yesterday claimed that the founders will be bringing home the bacon with a £90 million windfall from the sale of their web-based personalised greetings cards business.
Nick Jenkins, told GT: “The media have jumped the gun reporting the story based on rumours. This is one of a range of options we are looking at, and talks with Photobox are in a completely embryonic stage. Even if there was a deal to be done we don’t know what it means yet or what the shape of it would be.”
Photobox is backed by a group of investors including Index Ventures, which has previously backed Skype and Lovefilm.
Moonpig, a trading name of Altergraphics Ltd, started 12 years ago at the height of the dotcom boom. The company has since been valued in the region of £125m, a figure that the chairman does not refute. In terms of a future sale, Jenkins said: “We have never ruled out anything but there is still lots more to be done with the business. We have been in discussions with a number of people over the last 2 years as we look to take the business off to the next level.”
The company’s fortunes have gone from strength to strength in recent years. Last year the founding entrepreneurs Nick Jenkins and Duncan Spence shared a £5m dividend. In 2010 it shipped 8.2m cards and increased its pre-tax profits from £6.7m to £11.2m. Its recent Mothers day card sales are estimated to be 700,000.