20 Sep 2022 07:00
20 September 2022
Appreciate Group plc
AGM Statement
Trading Update
"Trading in line with the Board's expectations - continued focus on costs, growth, and simplification"
Appreciate Group (the 'Group'), the UK's leading multi-retailer redemption product provider to Corporate and Consumer markets, today issues the following trading update for the current financial year in advance of its Annual General Meeting to be held later today.
Trading Overview
Overall trading is in line with the Board's expectations.
The Group has prioritised driving profitable billings within our High Street Vouchers (consumer) business ahead of volumes. Our focus in Appreciate Business Services' (corporate) market continues to be on improving the retention levels for corporate clients while increasing the number of new clients purchasing from us for the first time. This sets up the Group strongly for its key trading period in the lead up to Christmas.
Our Park Christmas Savers business is trading strongly and in-line with expectations, underpinned by our highest level of agent and direct customer retention rates. The new Park Christmas Savers 2023 campaign launched earlier this month and we remain confident that this channel can return to growth.
Twenty two new partnerships have been added to the Love2shop brand since the beginning of the financial year and fifty-three exclusive value adding offers have been sent to our customers.
The Group is highly seasonal in nature, with 58% of total billings and 51% of full year contribution made in Q3 last year. We anticipate that this will be higher this financial year as both corporate and consumer customers reassess their spending habits and look for the best value in the run up to Christmas, in response to the macroeconomic challenges that everyone is facing.
Commenting, Guy Parsons, Executive Chair of Appreciate Group plc, said:
"Since being appointed Executive Chair on 1 August 2022, the senior management team has focused on the Group's costs and maximising profitability. We have already identified and implemented some immediate changes around how we communicate the savings that recipients of a Love2shop product can benefit from, evaluated net profit by channel to drive the most profitable billings, as well as ensuring that we are earning a suitable risk adjusted return from the large sums held on deposit.
"In the coming months, we will be working to accelerate the simplification of the business, which is intended to enhance earnings in the medium term. I expect to be able to make further announcements in due course on progress with these plans.
"Despite the challenging macroeconomic environment, our outlook remains in line with our expectations for the year ending 31 March 2023. I am confident that with the leadership changes underway and a renewed focus on costs, growth, and simplification, the Group can continue to prosper."
MBL Acquisition
The integration of the MBL business is in-line with the Board's expectations.
Board update
Following the appointments of Talha Ahmed as Interim Chief Financial Officer on 6 July and Julian Coghlan as Interim Chief Executive Officer on 1 September, the process for the selection of a permanent CEO and CFO is progressing and further announcements will be made in due course.
Appreciate Group plc | Liberum (NOMAD and broker) | MHP Communications |
Guy Parsons, Executive Chairman | Richard Crawley Jamie Richards | Reg Hoare Katie Hunt Charles Hirst |
Andy Hammerton, Head of Corporate Affairs
Tel: 0151 653 1700 |
Tel: 020 3100 2222 |
Tel: 020 3128 8193 Email: appreciategroup@mhpc.com |
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 corporate 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, Appreciate Business Services 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 helps around three hundred thousand 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 Appreciate 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