Appreciate increases payouts as it halves interim loss

(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 0.1% lower at 41.86 pence each in London on Tuesday afternoon.

By Tom Budszus; [e-mail]

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