Archived article
Please note that tax, investment, pension and ISA rules can change and the information and any views contained in this article may now be inaccurate.
Appreciate Group PLC on Tuesday reported a strong recovery in both of its divisions in its latest financial year, as it also announced the acquisition of a gift card business.
In the financial year that ended March 31, the Liverpool-based prepaid gift card and voucher provider reported a profit before tax and exceptional items of £8.4 million, multiplied from £2.3 million the previous year.
Revenue rose 15% to £123.3 million in the year from £106.8 million. The firm noted a strong recovery in profitability for both its divisions and cited a strong performance in Corporate business for the rise in revenue.
Billings fell to £385.8 million from £406.5 million following a reduction in billings from Christmas Savings. Appreciate explained that the Christmas Savings offering was hurt by lockdown measures during the Covid-19 pandemic.
Appreciate reported that trading in the first 12 weeks of its current financial year has been in line with expectations. It added that its search for a new chief financial officer is continuing.
‘Notwithstanding economic headwinds, we are confident of delivering another year of progress through our increased capabilities. Initial trading so far this year has been encouraging and we are seeing strong demand from organisations that are focusing on retaining and attracting employees and customers during the current economic challenges,’ said Chief Executive Ian O'Doherty.
Appreciate declared a final dividend of 1.2 pence per share, bringing the full-year payout to 1.8p. In 2021, the company paid 1.0p.
Separately, the company announced it acquired MBL Holdco Ltd, a north east England-based gift card technology provider, for an initial cash payment of £1.7 million. A further £1.8 million is deferred for 12 months, dependent on meeting agreed criteria.
Appreciate said the initial cash payment will be funded from existing financial resources. Operationally, the MBL business will be self-funding, and Appreciate expects it to be cost-neutral to the wider group. It didn't provide profit and revenue figures for MBL.
‘The acquisition of MBL rapidly accelerates the group's technology plans and immediately enhances our capabilities, particularly in our Corporate business, where we are already enjoying increased customer demand for our products. The MBL platform will help us improve the competitiveness of our offerings and bring forward opportunities that can deliver higher levels of growth,’ commented O'Doherty.
Shares in Appreciate were up 6.8% at 29.90 pence on Tuesday in London.
Copyright 2022 Alliance News Limited. All Rights Reserved.