TIDMAPP
RNS Number : 3801M
Appreciate Group PLC
21 September 2021
The information contained within this announcement is deemed by
Appreciate Group to constitute inside information as stipulated
under the Market Abuse Regulations (EU) No. 596/2014 ("MAR")
21 September 2021
Appreciate Group plc
Annual General Meeting (AGM) statement and trading update
Trading improves in Q2 - billings up 3.6% year to date on
FY20
Appreciate Group plc (the 'Group'), the UK's leading
multi-retailer redemption product provider to corporate and
consumer markets, is today holding its Annual General Meeting. The
Chairman, Laura Carstensen, will make the following comments on
current trading for the financial year commencing 1 April 2021.
Q2 improvement in trading - now ahead of both FY20 and FY21 for
year to date
I am pleased to report that there has been an improvement in
trading since our last update, which was issued at the time our
final results were announced on 29 June 2021.
Corporate and Gifting billings in Q2 are 14.6% ahead of levels
seen in FY20 (the last normal trading year before the pandemic)
with year to date (1 April 2021 until 17 September 2021) billings
now up 3.6%, a considerable improvement on Q1, which was 6.0% lower
than the same period in FY20.
Performance is also significantly better than the same period in
FY21, which was severely impacted by the first lockdown. Corporate
and Gifting billings for the year to date are up 28.1% on the
comparable period in FY21. Billings of GBP40.7m for Q2 are broadly
similar to Q2 FY21 (FY21: GBP40.9m) which benefitted from
involvement in the free school meals initiative.
Billings Q1 Q2 up to YTD up to 17 Sept
Corporate and 17 Sept
Gifting only
FY22 GBP39.0m GBP40.7m GBP79.7m*
--------- --------- -----------------
FY21 GBP21.3m GBP40.9m GBP62.2m*
--------- --------- -----------------
FY20 GBP41.4m GBP35.5m GBP76.9m
--------- --------- -----------------
% diff (FY22 vs
FY21) +85.7% -0.6% +28.1%
--------- --------- -----------------
% diff (FY22 vs
FY20) -6.0% +14.6% +3.6%
--------- --------- -----------------
*Includes billings through free school meal scheme FY21:
GBP10.4m; FY22: GBP8.2m
This improvement has been driven by strong Q2 performance from
our Corporate business, which is currently 6.8% up year to date
against FY20 with billings of GBP68.3m (FY20: GBP63.9m).
Gifting billings continue to narrow the gap to FY20 levels. They
currently stand at GBP11.5m (FY20: GBP13.0m), down 12.1% on the
comparable period in FY20. The Group has strengthened its approach
to digital marketing and continues to focus on initiatives to drive
business, which has resulted in visits to Highstreetvouchers.com
increasing by 36.4% on the prior year.
As was expected, there has been a significant improvement in
redemptions as restrictions have eased and in person consumer
activity has increased. Overall redemptions are up 70.6% on the
prior year, with paper voucher redemptions 89.2% higher as we see
the anticipated deferred revenue come through.
There is no change to our expectation (as stated on 29 June
2021) that the Christmas Savings business will be c.14% down on
FY21. The order book is now largely complete and we began
dispatching the first customer orders earlier this month.
PayPoint partnership ramp up and further expansion of redemption
choices
Following the announcement of the new partnership on 27 May 2021
to offer the Group's gifting products to consumers via PayPoint's
network of 28,000 outlets, we continue to work with them to build
awareness and availability of our products with its retailers, as
well as their customers. The partnership is an exciting opportunity
over the medium term, although it remains at an early stage, and we
are exploring ways to enhance the services we offer through the
PayPoint network.
We have also continued to increase the appeal of our products by
adding to the choice of both in-person and online redemption
options available to customers. This includes dining out through
restaurant chains such as All Bar One, Browns and Toby Carvery;
increased leisure offerings via Canvas Holidays and Merlin's
attractions including Legoland and Madame Tussauds; along with
retailers like Habitat, Crew Clothing and F.Hinds.
Evolving our strategy to focus on growth
Since 2018, the Group has been implementing a strategy which was
focused on building a more robust and scalable platform from which
to drive growth. Significant progress has been made through
investments in technology and digital enablement, together with
simplification and repositioning of the organisation, the benefits
of which are beginning to come through.
Having completed the simplification and repositioning activity,
we now have a more robust and scalable platform. Our focus is on
using this bedrock to deliver our growth opportunities in our key
markets, whilst prioritising costs which are aligned to the
strategy, at a time when the economy appears to have moved up a
gear. We will provide an update on these growth initiatives at the
time of the Group's half year results which we expect to issue on
23 November 2021.
Peak trading period remains key to performance for the year
Having enjoyed a strong Q3 peak trading in FY21, including our
best ever December (boosted by Corporate clients choosing to reward
staff over traditional Christmas parties), we are focused on
driving another strong performance in this key period for the
current financial year.
Reinvigorating Christmas Savings
We are building a detailed marketing campaign for Christmas
Savers to secure optimal account acquisition and retention for
2022. This includes utilising an extensive review of media
effectiveness, introducing improvements in our product offering,
dedicated retention initiatives; alongside evolving our marketing
approach.
Looking forward with building momentum and confidence
As the UK economy and consumer confidence shows signs of
returning towards pre-pandemic levels, we are pleased to see the
anticipated improvement in performance during Q2, giving us
momentum as we enter our main seasonal trading period.
Following the changes we have made to invest in and reposition
our Corporate business, we are now seeing positive trends and this
gives us confidence for the year ahead.
We are nearing the final stage in our transformation. We have
now invested in a more robust and scalable platform and our focus
is on leveraging this to deliver on our growth opportunities, at a
time when the economy appears to have moved up a gear but with
distance to go to restore pre-Covid momentum and prospects. We
believe we are positioned to benefit from any upward economic
trajectory.
Enquiries
Appreciate Group Liberum MHP Communications
plc (NOMAD and broker)
Ian O'Doherty, CEO Richard Crawley Reg Hoare
Tim Clancy, CFO Jamie Richards Katie Hunt
Charles Hirst
Andy Hammerton, Head
of Corporate Affairs Tel: 020 3100 2222 Tel: 020 3128 8193
Email: appreciategroup@mhpc.com
Tel: 0151 653 1700
The information contained within this announcement is deemed by
Appreciate Group to constitute inside information as stipulated
under the Market Abuse Regulations (EU) No. 596/2014 ("MAR").
Notes to Editors:
Appreciate Group is one of the UK's leading gifting, pre-payment
and engagement companies, and experts at creating joyful
experiences and connecting people to the things in life they enjoy
the most.
Everything Appreciate Group does is focused on creating more joy
in the world, and it is proud to be trusted to help its customers
create moments they can treasure and remember, whether they are
giving, celebrating or rewarding.
Appreciate Group is a financial services business with a wide
portfolio of brands which provide solutions for its consumer and
business customers. Its consumer-facing brands meet a range of
prepayment and gifting needs, while its business products help
corporate customers reward and recognise their employees and
clients.
Appreciate Group is home to many of the country's most-loved
gifting, pre-payment and engagement solutions including Park
Christmas Savings, highstreetvouchers.com and Love2shop, and we are
fast-becoming the home of digital innovation in gifting.
Whether it's saving towards the perfect family Christmas or
celebrating with gift cards and vouchers, we create and supply
products that millions of people trust when it comes to giving and
receiving with family, friends or colleagues.
Park Christmas Savings: As the UK's largest family Christmas
savings club, Park Christmas Savings has helped over 2.7 million
families budget for Christmas on a short-term or year-round
basis.
Love2shop: Love2shop offers gift cards and gift vouchers
available to spend at stores and attractions across the UK. They
are also used through our Love2shop Business Services providing
corporate partners with incentives and rewards for their employees
and clients.
Appreciate Group plc's shares are traded on AIM, a market
operated by the London Stock Exchange.
The Park Prepayments Protection Trust is designed to increase
protection for customers' prepayments. The Trust has three
directors, two of whom are independent of Appreciate. Details of
the trust are set out here:
https://www.getpark.co.uk/CORPORATE/declaration.pdf
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END
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