Park Group delivers excellent results

Birkenhead company, Park Group, have reported am “excellent” first half with increased sales and reduced losses.

The company, which operates a gift voucher and prepaid gift card businesses and consumers, typically makes a loss in the first half with the majority of annual revenues generated in the second half. However, Park Group is reputed benefiting from the recovering economy and a less difficult retail environment in 2014.

Chris Houghton, chief executive of Park Group, said:

“More people have got more money to spend – we have seen this on both the corporate and consumer side, which is pleasing.

“The retail failures in 2012-13 did have an impact on Christmas 2013 in terms of undermining confidence, but this year the picture is brighter from that perspective too.”

From the six months to the end of September 2014 total billings rose by 28.1% to £75.4 million, with revenues rose significantly to £58.% million (an increase of 21%). The company’s seasonal pre-tax loss was £2.4 million, decreasing by £400,000 from £2.8 million in 2013. Corporate billings are up 26.4% tp £58.6 million, while consumer billings were up by 34.5% to £16.8 million.

Orders are reported to be coming in advance of Christmas 2015, with around £90 million placed.

Houghton added:

“Park has delivered an excellent set of results for the first half of the year.  Improvement in consumer confidence continues to have a positive impact on our businesses, assisted by our ongoing investment in information technology platforms, new product developments and our focus on building partnerships with an increasing number of retailers.  The strength in our order books underpins our positive outlook for the future.”

Park Group originally provided Christmas hampers which customers could save for more than a year. This segment still makes up a small part of Park’s business (with 123,000 hamper deliveries over the coming weeks providing £8 million to revenues) but the company has since expanded into other areas and generates total revenues of £300 million.


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Words: Peter Cribley

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