Appreciate Group


£68m market cap

36.5p last close

Appreciate Group is a specialised financial services business and is the UK’s leading provider of multi-retailer redemption products. Consumers can access products directly through its market-leading Christmas Savings offering while corporate customers use these products to supply a range of incentive and reward products.

Investment summary

H120 results showed a resilient performance, in line with management’s expectations for the year, and continued strategic progress. Compared to the prior half-year, billings grew by 10.3% with Corporate benefitting from increased demand and the impact of new clients and Consumer showing good strong progress in the direct channel and faster shipments in Christmas savings. Reflecting billings growth and higher margins, the seasonal pre-tax loss reduced to £1.3m (H118: £1.5m) despite a c £1.0m negative impact of strategic business plan implementation costs. Management still expects a full year net cost of £2.0m. Core operations have been relocated to the group’s new offices in the centre of Liverpool and good progress has been made on rationalising the brand architecture and implementing its technology upgrades. Trials are continuing on the new digitally optimised consumer gifting product that will target a new millennial audience as the company seeks to increase its penetration of the wider consumer market. Investment costs are dampening current earnings but from FY21 onwards the company targets p&l benefits of £2–5m pa.

Y/E Mar
Revenue (£m)
PBT (£m)
EPS (p)
P/E (x)
P/CF (x)
2018A 111.1 12.7 12.6 5.5 6.6 N/A
2019A 110.4 12.3 12.5 4.8 7.6 N/A
2020E 114.7 11.7 11.8 5.1 7.2 N/A
2021E 120.3 13.7 13.4 5.8 6.3 N/A
Industry outlook

The market is estimated at c £6bn by the UK Gift Card & Voucher Association, and is fragmented, providing significant opportunities for growth.

Last updated on 26/03/2020
Share price graph
Balance sheet
Forecast net cash (£m) 23.7
Forecast gearing ratio (%) N/A
Price performance
Actual (42.1) (34.8) (48.4)
Relative* (26.8) (11.0) (34.8)
52-week high/low 78.0p/35.4p
*% relative to local index
Key management
Laura Carstensen Chairman
Ian O'Doherty CEO

Content on Appreciate Group