Appreciate Share Discussion Threads

[powerp2] 01/7/2021 13:06

When the market is tough and revenues down bouncers to nail costs down. I'm not convinced the CEO sees it that way hence the share price is the lowest in over 10 years.

[cfro] 01/7/2021 09:51

Taking a first time look here.
To be fair this company has been badly covid affected - like really badly covid affected. With revenue only down by 5.2% and billings down by only 3.2% - when for most of the year the country has been shut - is that not a credible performance given the circumstances?

And they are still not yet out of the woods with the first 12 weeks slower than expected, so it's going to take a while for the business to find some legs. Perhaps many months. Seems to me it's one to judge in a couple of years time, then decide whether the CEO is an idiot or genius. The management certainly don't have much skin in the game but the CEO did buy 40k at 34p last April. Ideally they should all be putting their hands in their pockets here though.

Reasons for optimism is that they are no.2 in an £8bn a year industry which is growing yoy. Digital sales are growing fast and the recent tie-up with paypoint is a super move. Easy to see a 100p + share price in say two years time providing the directors get their act together.

[powerp2] 01/7/2021 09:05

I hope you're right Andre

[andre] 30/6/2021 23:12

To be balanced, you are probably asking a lot in a business with Covid affected core. The jury is out but I do see room for optimism in some of that positive spin. It's not a hugely valued company once you realise that in a month we will be unlocked (and Covid will be the new flu). Everyone will be back at the shops, spending the cards and core business will return to compliment the digital offerings. Just a thought.

[topvest] 30/6/2021 21:35

Yes, I agree. Since the new management team onboarded they have spent a small fortune on technology and significantly increased the cost base. This needs to lead to revenue and margin growth. A simplification agenda is no good if it increases the cost base. I thought that the presentation was a bit rubbish and I am left thinking that the CEO is a typical 'no skin in the game' empire building CEO with limited ability. They have spun the results to be really positive and in line with expectations - they clearly were not given the share price fall. There was no acknowledgement of anything that they weren't doing well enough on...just one success after another which was totally inconsistent with the financial results. Not impressed by any management team that can present for 20 minutes on how well they have done (with no apparent shortfalls in their plans) when in reality the results were poor. It looks like I have made a mistake with this one.

[powerp2] 30/6/2021 15:26

Thanks for the link I've just watched the presentation
The CEO sounds more like a Chief Technology Officer than CEO. Frankly he is saying the same stuff as he has every time I've heard him. I agree that he as to deliver this year or go.The Chair would have to consider her position too.
We should not be spending money on system enhancements until we have optimised and see the hard financial benefits of the significant spend to date
The jury is out on this

[tomps2] 30/6/2021 11:15

Appreciate Group’s CEO, Ian O’Doherty & CFO, Tim Clancy present full-year 2021 results. It was a year of significant progress – weathering lockdowns whilst re-focussing the business and accelerating the digital proposition.

Watch the video here:

Or listen to the podcast here:

[topvest] 29/6/2021 20:33

Disappointing results and management commentary was poor. They have missed expectations, but tried to talk it up and explain it away...even the explanation was unclear and didn't really hold together. This is now probably a bid candidate - its a good business, but management appear lacklustre. The CEO needs to deliver or resign. Simple as that. They basically need to grow revenue and cut costs, but appear to be doing the reverse!

[1tx] 29/6/2021 16:07

Much of APP's customer base routine still badly affected by Covid & less likely to use/buy its products.Thankfully just about the only share I own that has not largely recovered at least pricewise,I bought shares here in late 2019 having been a shareholder many years previously in the hope that it had reinvented itself.Jury out in my opinion as to whether the old Christmas Club market recovers.Truthfully I think non holders can wait & see at the moment.

[powerp2] 29/6/2021 15:48

I can't make my mind up if this CEO is a genius or idiot!

[andre] 29/6/2021 11:45

Agreed. I thought market expectation was circa 4m. So I'm not sure where the profit figure is inline with that. Still, once it settles I'll probably buy more. Once out of this Covid mess, it's still a solid business with good prospects.

[upsillon] 29/6/2021 09:05

Howler. Complete lack of explanation for these numbers

[scepticalinvestor] 29/6/2021 08:32

LOL bargepole this

[topvest] 28/5/2021 20:33

Yes, sounds like a good opportunity. Lots of potential to be the number 2 to Amazon on e-gift cards.

[mr5k] 28/5/2021 14:10

It's always been easy to pick up stock. It's an interesting initiative - you have two businesses that want growth combining.

[andre] 27/5/2021 12:49

Big news goes unnoticed here. 10% rise means somebody is adding though.

[mr5k] 07/5/2021 17:50

My guess is that their digital vouchers will slip nicely into e-wallet on ios or android.

The growth in digital has been pretty amazing. My concern is that the ERP is delayed for longer and it will hamper the ability to grow the business.

For the moment, hybrid working practises puts these guys in the sweet spot. I'm hoping they can capitalise on the opportunity.

[boonkoh] 06/5/2021 10:39

That depends if their digital props are seen as good and starts generating good growth.Yet to see that, and yet to be convinced.Did you not notice they've quietly shelved their digital gifting trial they were trumpeting back in 2019?

[mr5k] 06/5/2021 09:17

Once the ERP system is sorted and the market focuses on the digital opportunity and the growth, APP should be re rated as a growth stock/fintech. At the moment, it's just languishing as a value stock, tarnished by the Park Group. Within the next 18 months, the business should start generating some sustainable momentum and, my guess, the current share price will be seen as the nadir.
Mr5k

[velocytongo] 29/4/2021 09:58

Custies unable to redeem all those vouchers from Xmas .. that should change now shops are open .. just need to get this erp system sorted and the business can start to motor .. the hybrid work patterns should be a big opportunity for this company .. vt

[eezymunny] 29/4/2021 09:47

All the shops were shut in Q4 boonkah!

APP has been very Covid affected.

[florence141414] 29/4/2021 09:30

Hi Boon, I agree a 3.9% decline in yoy comparisons from the first 9 months to Q4 isn’t ideal but looking at the bigger picture, I think -8% in billings for the year as a whole is a very creditable result. Add to that the strength of the balance sheet and the already low valuation and it’s still very investable IMO.

Always happy to hear the other side though GL

[boonkoh] 29/4/2021 09:00

Then you chose to ignore the glaring decline in YoY revenues (Billings, HSV) for Q4 compared to the first nine months of the year.

[florence141414] 29/4/2021 08:45

Very surprised to see the share price drop on that update. 32m unrestricted cash makes EV around the 40m mark, PBT confirmed in the 4.1-4.9m range in a year in which Christmas was as close to cancelled as its ever going to be. See no reason they won’t quickly return to profits more aligned with 2019 and 2020.

I’ve topped up.

AIMO GLA

[andre] 13/4/2021 18:49

Looks like there is a bit of life here now. Steady buying today. Good to see.