Appreciate shares rise as half-year loss is halved; dividend increased

(Alliance News) - Appreciate Group PLC on Tuesday posted a narrowed interim loss, despite a contraction in revenue and billings, as the prepaid gift card and voucher provider said it is well set up for the period in the lead up to Christmas.

The Liverpool-based company said in the six months to September 30, pretax loss narrowed to GBP1.2 million from GBP2.9 million a year prior.

Billings however fell 13% to GBP103.1 million from GBP118.2 million. Revenue decreased 5.6% to GBP38.7 million from GBP41.0 million.

Pretax loss was narrowed as a result of lower administrative expenses and cost of sales. Administrative expenses decreased by 16% to GBP9.9 million from GBP11.9 million, while cost of sales fell by 4.4% to GBP30.1 million from GBP31.4 million.

The company declared an interim dividend of 0.8 pence per share, up 33% from 0.6p.

Appreciate said it is set up "strongly" for the key trading period in the lead up to Christmas as it continued to simplify its business.

Two weeks ago, Hertfordshire, England-based payment services provider PayPoint PLC said it is buying Appreciate in a deal that values the company at around GBP83 million.

PayPoint will pay 33 pence in cash and 0.019 of a new PayPoint share for each Appreciate share. PayPoint expects the takeover scheme to become effective in the first half of 2023.

Appreciate shares were 1.4% higher at 42.50 pence each in London on Tuesday afternoon.

By Tom Budszus; [e-mail]

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