Funky Pigeon counts cost of cyber attack topical card ranges topical card ranges

The cyber attack at online card retailer Funky Pigeon has contributed to a near-£20m fall in sales and wiped £6m off the brand’s EBITDA.

Funky Pigeon was unable to process orders for around a fortnight earlier this year because of the cyber incident.

The cards and gifts etailer is owned by WH Smith. 

In its preliminary results for the financial year ended 31 August, WH Smith said that “as expected” sales at were down 35% at £35m, while EBITDA at the operation fell from £14m to £8m, “reflecting the cyber incident in April”.

“ is recovering well and we are confident of the substantial opportunities to grow the platform further, and significantly grow revenue and profits over the medium-term,” WH Smith stated. 

At the time of the attack, Funky Pigeon moved to reassure customers, and said: “Regrettably, all online businesses are at risk of being targeted by cyber criminals. We have processes in place to protect our customers' data and as soon as we discovered this incident we took immediate steps to address the issue.

“While the customer facing website was not affected by the incident, we took the quick decision to temporarily suspend any new orders to protect our customers as a precaution.”

The Funky Pigeon app has subsequently been revamped and a new, seven days a week next-day delivery service has been added. 

WH Smith also has a specialist pen website, Cultpens, and has added personalised pens this year “to further develop the gifting category”.

The overall group posted sales of £1.4bn (2021: £886m), and restored its dividend after what was described as a “significant recovery” in trading. 

WH Smith is also expanding its store portfolio. During the year the group opened 98 stores and now has a store pipeline of 150 stores that are due to open over the next three years.

In travel locations such as airports and stations it is repositioning its traditional news, books and convenience format into a “one-stop-shop travel essentials format” that includes health and beauty, tech products, and premium food ranges.