In its trading statement for the three months ending 31 December 2022, Appreciate Group says that trading in Q3 was as expected, reflected the normal pattern of seasonality and that its profit outlook remains in line with the Board’s expectations.
The Group has continued to prioritise driving profitable billings within its High Street Vouchers business ahead of volumes. In the Appreciate Business Services’ market, it has continued to focus on retaining existing corporate clients while increasing the number of new clients. New client numbers have increased by 27 per cent vs last year, which was offset by a reduction in average order value of 8 per cent across its entire ABS client base.
The new Park Christmas Savings 2023 campaign launched in September and traded strongly in Q3, in-line with expectations year to date, underpinned by continued high levels of agent and direct customer retention rates.
On 7 November 2022, the boards of directors of Appreciate Group and PayPoint announced that they had reached agreement on the terms of a recommended offer pursuant to which PayPoint will acquire the entire issued and to be issued share capital of Appreciate Group, to be effected by means of a Court-sanctioned scheme of arrangement.
Commenting, Guy Parsons, Executive Chair of Appreciate Group plc, said:
“We are pleased to report trading has been in line with expectations despite the challenging macroeconomic environment. We have continued to work to accelerate the simplification of the business and to drive our most profitable billings, which is intended to enhance earnings in the medium term. We are also ensuring that we are earning a suitable risk adjusted return from the large cash sums held on deposit.”