RNS Number : 7715R
Appreciate Group PLC
02 July 2020
2 July 2020
Appreciate Group plc
Trading and financing update
Notice of Final Results
Appreciate Group plc (the 'Group'), the UK's leading
multi-retailer redemption product provider to corporate and
consumer markets, today provides an update on current trading and
financing and notice of its final results.
Improved trading since year end
In our Year-End Trading Update, issued on 30 April 2020, we
acknowledged the initial impact of lockdown by stating that "demand
in our Corporate and Other Consumer areas is approximately 70%
below last year."
We have seen trading gradually improve in the new financial
year. Total billings have started to recover; they were down 47%
year on year in May, and 35% down in June to give a year to date
position of 48%.
We also stated in the Year-End Trading Update that our Christmas
Savings business was currently 10% below the prior year and that
"current cancellation rates [for our Christmas Savings business]
are similar to previous years" and this has remained the case.
The Group is continuing to implement the remaining elements of
the strategic business plan whilst accelerating its move to digital
products. Combined with the actions we have taken to mitigate the
impact of the lockdown on trading, we anticipate improved trading
in the coming months and as lockdown is further eased.
Update on bank financing
As stated in the 30 April trading update, the Board has reviewed
several financial scenarios of the potential impact of COVID-19 on
the business and, in each of those scenarios, the Group retains
positive free cash this financial year. Total billings are
currently marginally ahead of our mid-range scenario and as at the
end of June free cash stood at GBP18.8m.
We have commenced the bank financing exercise announced in our
30 April trading update, to provide the additional financial
flexibility to accelerate our medium and long--term growth, as well
as invest in the continued switch to digital. This process is
progressing positively with initial meetings with banks having
taken place and proposed terms are expected shortly.
Notice of final results
The Group intends to announce its final results for the year
ended 31 March 2020 on 12 August 2020. This follows the
announcement on 30 April 2020 in which the Group confirmed its
intention to postpone issuing the results (initially expected to be
issued on 17 June 2020), following FRC, FCA and AIM guidance on
issuing annual audited accounts, and its desire to provide greater
clarity around the impact of COVID--19 on current financial year
Ian O'Doherty, Chief Executive Officer at Appreciate Group plc,
"We have seen a gradual recovery in trading, and we anticipate
that this will continue as we move further away from the initial
shock of lockdown. We have a clear strategy focused on a switch to
digital products which will enable us to take advantage of the long
term behavioural changes that COVID-19 is driving. We have a solid
financial position and are confident that we will emerge strongly
from this crisis."
For further information please contact:
For further information please visit
https://www.appreciategroup.co.uk or contact:
Appreciate Group plc Liberum MHP Communications
(NOMAD and broker)
Andy Hammerton, Head Richard Crawley Reg Hoare / Katie
of Corporate Affairs Jamie Richards Hunt / Charles Hirst
Ian O'Doherty, CEO
Tim Clancy, CFO
Tel: 0151 653 1700 Tel: 020 3100 2222 Tel: 020 3128 8193
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
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
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
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
Giftli: Giftli is a personalised gift card, available to spend
online at over 60 brands. The card can be personalised through
photos and a personalised message.
Select Digital Gift Card: The UK's first fully digital
multi-retailer gift card, available to spend online or in-store
through your mobile wallet.
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:
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(END) Dow Jones Newswires
July 02, 2020 02:00 ET (06:00 GMT)