Moonpig shares fell sharply on Thursday after the online greeting card seller's profits were almost wiped out by a painful impairment in its experiences division. 

The group's reported pre-tax profits plummeted from £46.4million to just £3million last year after the business took a £56.7million impairment charge related to the unit.

It came as the group also told shareholders chief executive Nickyl Raithatha is standing down  after seven transformative years in charge.

Nickyl Raithatha joined Moonpig in 2018, following stints running the womenswear brand Finery London and the German venture capital business Rocket Internet.

During his tenure, the company bought Dutch rival Greetz and separated from online photo printing firm Photobox Group, which had acquired Moonpig in 2011 for £42million.

The Covid-19 pandemic then sent Moonpig's sales soaring as restrictions on physical stores spurred more people to buy their cards online.

Moonpig went public in February 2021 on the London Stock Exchange with a £1.2billion valuation, netting Raithatha a reported £8.3million payout.

However, trading slowed considerably after lockdown curbs ended, people returned to purchasing cards on the high street, and mounting inflation dampened consumer spending.

Yet the London-based business, which has increasingly invested in its AI offering, remains the largest online cards retailer in both the UK and the Netherlands.

Kate Swann, chair of Moonpig, said: 'Under [Raithata's] leadership, the group has reinforced its position as the category-defining online platform for greeting cards and gifting.

'Nickyl leaves the group in a strong position, with the group's FY25 results showcasing another year of strong earnings growth and high free cash flow.

Moonpig shares were down 9.7 per cent to 220p by midmorning, making them the FTSE 250 Index's biggest faller.

But Moonpig revealed its adjusted pre-tax profits jumped by 16 per cent to £67.5million in the year ending April, thanks to solid trading and lower net finance costs.

Turnover increased by 2.6 per cent to £350.1million, with an 8.6 per cent uptick in Moonpig brand sales offsetting weaker performances by its Greetz and Experiences divisions.

The value of an average Moonpig and Greetz customer order tipped up by 2.1 per cent due to higher postage prices, better targeting of promotional activity and rising gift attachment rates.

Meanwhile, the company's revenue in Ireland, Australia, and the United States shot up by a combined 36.1 per cent to £11.8million.

Moonpig noted trading had been in line with forecasts since May, helped by Father's Day sales surpassing their lockdown-era heights in 2020.

Following the performance, it has announced an inaugural dividend of 3 pence per share and a £60million share buyback programme.

'Looking ahead, Moonpig Group's clear market leadership puts us in a strong position to capitalise on the long-term shift to online,' said Raithatha.

For the current financial year, Moonpig expects its adjusted earnings before nasties to expand at a mid-single-digit percentage rate.

Richard Hunter, head of markets at Interactive Investor, said: 'The group is maintaining an upbeat outlook on guidance, but the Experiences write down has taken centre stage with the shares falling sharply at the open.

'The exit of the CEO is not an immediate concern, but generally hopes have been slightly dashed with these results and the market consensus of the shares as a buy could now come under some downward pressure.'