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APP

Appreciate Group AIM:APP Stock Report

Last Price

UK£0.25

Market Cap

UK£46.6m

7D

2.0%

1Y

-14.1%

Updated

26 Sep, 2022

Data

Company Financials +
APP fundamental analysis
Snowflake Score
Valuation3/6
Future Growth0/6
Past Performance2/6
Financial Health5/6
Dividends4/6

APP Stock Overview

Appreciate Group plc, together with its subsidiaries, operates as a prepayment, gifting, and engagement company for corporate and consumer markets in the United Kingdom.

Appreciate Group Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Appreciate Group
Historical stock prices
Current Share PriceUK£0.25
52 Week HighUK£0.33
52 Week LowUK£0.21
Beta0.58
1 Month Change-14.53%
3 Month Change-13.50%
1 Year Change-14.09%
3 Year Change-53.49%
5 Year Change-69.51%
Change since IPO-33.04%

Recent News & Updates

Aug 18
Appreciate Group's (LON:APP) Upcoming Dividend Will Be Larger Than Last Year's

Appreciate Group's (LON:APP) Upcoming Dividend Will Be Larger Than Last Year's

Appreciate Group plc ( LON:APP ) has announced that it will be increasing its dividend from last year's comparable...

Aug 04
Appreciate Group (LON:APP) Is Increasing Its Dividend To £0.012

Appreciate Group (LON:APP) Is Increasing Its Dividend To £0.012

The board of Appreciate Group plc ( LON:APP ) has announced that it will be paying its dividend of £0.012 on the 3rd of...

Shareholder Returns

APPGB Consumer FinanceGB Market
7D2.0%-2.1%-3.1%
1Y-14.1%-43.7%-14.4%

Return vs Industry: APP exceeded the UK Consumer Finance industry which returned -43.7% over the past year.

Return vs Market: APP matched the UK Market which returned -14.4% over the past year.

Price Volatility

Is APP's price volatile compared to industry and market?
APP volatility
APP Average Weekly Movement6.6%
Consumer Finance Industry Average Movement6.6%
Market Average Movement5.3%
10% most volatile stocks in GB Market10.8%
10% least volatile stocks in GB Market2.6%

Stable Share Price: APP is not significantly more volatile than the rest of UK stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: APP's weekly volatility (7%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1967303Julian Coghlanhttps://www.appreciategroup.co.uk

Appreciate Group plc, together with its subsidiaries, operates as a prepayment, gifting, and engagement company for corporate and consumer markets in the United Kingdom. The company offers Love2shop Gift Card, a pre-paid gift card; Love2shop Gift Voucher, a multi-retailer voucher; Love2shop Holidays, a travel agency; single store gift cards and vouchers; flexecash cards and e-codes; and corporate gifted cards and vouchers, as well as operates highstreetvouchers.com, an online voucher site. It also acts as an electronic money issuer; and offers brand engagement, packing, collection and delivery, travel agency, other services, and card administration support services.

Appreciate Group Fundamentals Summary

How do Appreciate Group's earnings and revenue compare to its market cap?
APP fundamental statistics
Market CapUK£46.59m
Earnings (TTM)UK£4.39m
Revenue (TTM)UK£123.27m

10.6x

P/E Ratio

0.4x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
APP income statement (TTM)
RevenueUK£123.27m
Cost of RevenueUK£91.83m
Gross ProfitUK£31.43m
Other ExpensesUK£27.04m
EarningsUK£4.39m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)0.024
Gross Margin25.50%
Net Profit Margin3.56%
Debt/Equity Ratio3.7%

How did APP perform over the long term?

See historical performance and comparison

Dividends

9.6%

Current Dividend Yield

76%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is APP undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for APP?

Other financial metrics that can be useful for relative valuation.

APP key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue0.3x
Enterprise Value/EBITDA3.5x
PEG Ration/a

Price to Earnings Ratio vs Peers

How does APP's PE Ratio compare to its peers?

APP PE Ratio vs Peers
The above table shows the PE ratio for APP vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average15.4x
RFX Ramsdens Holdings
28.7xn/aUK£63.8m
ASAI ASA International Group
4.9x25.2%UK£88.0m
FCH Funding Circle Holdings
4.2x41.8%UK£146.7m
HAT H&T Group
23.9x39.9%UK£180.6m
APP Appreciate Group
10.6xn/aUK£46.6m

Price-To-Earnings vs Peers: APP is good value based on its Price-To-Earnings Ratio (10.6x) compared to the peer average (15.4x).


Price to Earnings Ratio vs Industry

How does APP's PE Ratio compare vs other companies in the European Consumer Finance Industry?

Price-To-Earnings vs Industry: APP is expensive based on its Price-To-Earnings Ratio (10.6x) compared to the European Consumer Finance industry average (8.1x)


Price to Earnings Ratio vs Fair Ratio

What is APP's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

APP PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio10.6x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate APP's Price-To-Earnings Fair Ratio for valuation analysis.


Share Price vs Fair Value

What is the Fair Price of APP when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: APP (£0.25) is trading below our estimate of fair value (£0.51)

Significantly Below Fair Value: APP is trading below fair value by more than 20%.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price, but there are not enough analysts covering the stock to determine statistical confidence in agreement.


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Future Growth

How is Appreciate Group forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


0.1%

Forecasted annual revenue growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if APP's forecast earnings growth is above the savings rate (0.9%).

Earnings vs Market: Insufficient data to determine if APP's earnings are forecast to grow faster than the UK market

High Growth Earnings: Insufficient data to determine if APP's earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: APP's revenue (0.1% per year) is forecast to grow slower than the UK market (4.5% per year).

High Growth Revenue: APP's revenue (0.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if APP's Return on Equity is forecast to be high in 3 years time


Discover growth companies

Past Performance

How has Appreciate Group performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-28.4%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: APP has a large one-off loss of £2.7M impacting its March 31 2022 financial results.

Growing Profit Margin: APP became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: APP's earnings have declined by 28.4% per year over the past 5 years.

Accelerating Growth: APP has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: APP has become profitable in the last year, making it difficult to compare its past year earnings growth to the Consumer Finance industry (77.4%).


Return on Equity

High ROE: APP's Return on Equity (24.3%) is considered high.


Discover strong past performing companies

Financial Health

How is Appreciate Group's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: APP's short term assets (£158.3M) exceed its short term liabilities (£150.2M).

Long Term Liabilities: APP's short term assets (£158.3M) exceed its long term liabilities (£4.6M).


Debt to Equity History and Analysis

Debt Level: APP has more cash than its total debt.

Reducing Debt: APP's debt to equity ratio has reduced from 23% to 3.7% over the past 5 years.

Debt Coverage: APP's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: APP's interest payments on its debt are well covered by EBIT (117.5x coverage).


Balance Sheet


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Dividend

What is Appreciate Group current dividend yield, its reliability and sustainability?

Dividend Score

4/6

Dividend Score 4/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


9.60%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: APP's dividend (9.6%) is higher than the bottom 25% of dividend payers in the UK market (2.06%).

High Dividend: APP's dividend (9.6%) is in the top 25% of dividend payers in the UK market (5.8%)


Stability and Growth of Payments

Stable Dividend: APP's dividend payments have been volatile in the past 10 years.

Growing Dividend: APP's dividend payments have increased over the past 10 years.


Earnings Payout to Shareholders

Earnings Coverage: At its current payout ratio (76.4%), APP's payments are covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: APP is paying a dividend but the company has no free cash flows.


Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

0.2yrs

Average management tenure


CEO

Julian Coghlan (53 yo)

0.083yr

Tenure

Mr. Julian Graham Coghlan serves as Director at Appreciate Group plc since September 01, 2022. He serves as Interim Chief Executive Officer at Appreciate Group plc since August 2022. He served as an Execut...


Leadership Team

Experienced Management: APP's management team is not considered experienced ( 0.2 years average tenure), which suggests a new team.


Board Members

Experienced Board: APP's board of directors are considered experienced (3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: APP insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

AIM:APP Recent Insider Transactions by Companies or Individuals
DateValueNameEntityRoleSharesMax Price
14 Jul 22BuyUK£5,470Sally CabriniIndividual20,000UK£0.27
19 Jan 22BuyUK£13,000John O'DohertyIndividual50,000UK£0.26

Ownership Breakdown

What is the ownership structure of APP?
Owner TypeNumber of SharesOwnership Percentage
Public Companies163,6550.09%
Individual Insiders385,0000.2%
Private Companies10,250,8475.5%
General Public28,598,63415.3%
Institutions146,949,09278.9%

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Top 25 shareholders own 75.54% of the company
OwnershipNameSharesCurrent ValueChange %Portfolio %
12.1%
Artemis Investment Management LLP
22,547,000£5.6m-1.76%0.03%
10.18%
Schroder Investment Management Limited
18,975,193£4.7m0.22%no data
9.2%
Premier Fund Managers Limited
17,149,007£4.3m0%0.06%
7.81%
Unicorn Asset Management Limited
14,550,000£3.6m0%0.42%
4.46%
Soros Fund Management LLC
8,320,032£2.1m-16.74%0.06%
4.02%
The Ramsey Partnership Management Company
7,486,300£1.9m0%no data
2.96%
Brewin Dolphin Limited
5,507,400£1.4m25.64%0.01%
2.32%
Citigroup Inc.,Banking and Securities Investments
4,315,362£1.1m0%no data
2.15%
AXA Investment Managers S.A.
4,000,000£1.0m0%no data
2.1%
Janus Henderson Group plc
3,913,473£978.4k-4.27%no data
1.89%
Integrated Financial Arrangements plc, Asset Management Arm
3,530,984£882.7k50.36%0.05%
1.74%
J.M. Finn & Co. Ltd.
3,242,440£810.6k8.43%0.02%
1.61%
Blankstone Sington Limited, Asset Management Arm
2,991,002£747.8k-15.91%0.86%
1.48%
Chelverton Asset Management Limited
2,750,000£687.5k0%0.04%
1.45%
Jarvis Securities plc, Asset Management Arm
2,709,737£677.4k61.06%0.04%
1.24%
Norges Bank Investment Management
2,302,816£575.7k-4.55%no data
1.1%
Puma Investment Management Limited
2,041,119£510.3k16.98%0.28%
1.07%
A J Bell Holdings Limited, Asset Management Arm
2,000,117£500.0k14.94%0.01%
1.06%
Killik Asset Management
1,973,122£493.3k0%0.03%
1.01%
Ninety One UK Limited
1,875,817£469.0k0%no data
1%
Seven Investment Management LLP
1,869,098£467.3k33.62%0.05%
0.96%
James Sharp & Co., Asset Management Arm
1,782,400£445.6k-3.52%0.07%
0.92%
HBOS Investment Fund Managers Limited
1,705,225£426.3k36.93%no data
0.87%
Lombard Odier Asset Management (Europe) Limited
1,621,235£405.3k0%0.01%
0.86%
FNZ (UK) Ltd
1,610,149£402.5k61.08%no data

Company Information

Appreciate Group plc's employee growth, exchange listings and data sources


Key Information

  • Name: Appreciate Group plc
  • Ticker: APP
  • Exchange: AIM
  • Founded: 1967
  • Industry: Consumer Finance
  • Sector: Diversified Financials
  • Implied Market Cap: UK£46.587m
  • Shares outstanding: 186.35m
  • Website: https://www.appreciategroup.co.uk

Number of Employees


Location

  • Appreciate Group plc
  • 20 Chapel Street
  • Floor 4
  • Liverpool
  • Greater London
  • L3 9AG
  • United Kingdom


Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
APPAIM (London Stock Exchange AIM Market)YesOrdinary SharesGBGBPFeb 1992
PG5DB (Deutsche Boerse AG)YesOrdinary SharesDEEURFeb 1992

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/09/26 00:00
End of Day Share Price2022/09/26 00:00
Earnings2022/03/31
Annual Earnings2022/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.