Online retail: Moonpig in tax setback

The closure of a tax loophole has hit profits at online birthday and Christmas cards retailer Moonpig.

The ending last year of a policy that allowed low-value imports from the Channel Islands to avoid VAT hit profits and revenues at the company, which has a base in Guernsey. Profit for the year to end-April fell to £11.2m, from £12m in 2012, while revenue grew sluggishly to £46.4m, from £45.8m.

Despite the setback the board said it was "confident" that Moonpig would continue to grow.