Gifting firm Appreciate Group remains confident despite drop in revenues

Appreciate Group CEO Ian O'Doherty

Profits at Appreciate Group, the North West gifting company, have dropped following a challenging year.

The Merseyside group reported pre-tax profits of £1.3m for the year to the end of March, down from £7.7m in 2020.

The group said a number of operating costs had impacted the business this year but will no longer be incurred going forward.

They include restructuring costs incurred in relation to the wind down of its hamper production, contract packing and the Republic of Ireland business, restructuring costs as well as the sale of FMI.

Group billings during the period also decreased by 3.2% to £406.5m, down from £419.9m in 2020, despite growth from its Corporate business.

Revenue decreased by 5.2% to £106.8m, that’s down from £112.7m, due to lower billings with a greater level of deferred revenue following delays in spending whilst customers had fewer options to redeem their products in stores due to lockdown.

It said some of this deferred revenue is expected to come through in the next financial year.

The board has reinstated a dividend payment and has recommended a final dividend of 0.6p, making a full dividend for the year of 1.0p per share.

CEO Ian O’Doherty said: “Like other businesses, we have faced many challenges over the past year, but I’m pleased to say we have put the Group in the best position to weather the uncertainty.

“Having re-focussed the business on its core product and delivering for our customers and clients in the prepayment, gifting and engagement markets, and enhanced our digital capability, we have laid strong foundations for future years of growth.

“I am extremely proud of the dedication and commitment of our colleagues in delivering for customers throughout the period and want to thank them again for their extraordinary efforts.

“The speed at which levels of activity will return to normal remains unclear, however, we believe that as the economy emerges from lockdown, we are strongly positioned to exploit opportunities that arise in our market and deliver sustainable growth in future years.”

 

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