Park Group PLC AGM Statement (4800K)
September 22 2016 - 1:01AM
UK Regulatory
TIDMPKG
RNS Number : 4800K
Park Group PLC
22 September 2016
22 September 2016
Park Group plc
("Park" or the "Group")
AGM Statement
At the Company's Annual General Meeting, to be held today (22
September 2016) at 12 noon in The Vice Presidents Room, Tranmere
Rovers Football Club Limited, Birkenhead CH42 9PN, Laura
Carstensen, Chairman of Park Group plc, will make the following
statement:
"Followers of Park and investors will know that Peter Johnson,
who founded the business in 1966, retired from the Company in June
this year. I was delighted to succeed him as Chairman and am
pleased to provide the following update to shareholders:
Overview
"On 14 June, I reported that in the year to March 2016, Park
delivered an 8.5 per cent increase in profit before tax to GBP11.9
million, on billings which were 3.3 per cent higher than the
previous year at GBP385.0 million. I also stated that indications
for the current year were encouraging and am pleased to advise that
Park has maintained this momentum.
"The importance of new product development is at the heart of
Park's progress and success on both the Consumer and Corporate
sides of our business, and we continue to utilise the latest trends
and developments in information technology and mobile smart devices
to keep ahead.
Corporate
"Our Corporate business continues to flourish. It offers a wide
range of gift cards, vouchers and digital reward products as well
as bespoke on-line systems enabling businesses to motivate,
communicate and incentivise their employees and customers alike. We
supply to around twenty eight thousand UK businesses in a market
estimated to be worth over GBP5 billion.
"We have further enhanced our Everyday Benefits proposition, a
cost effective voluntary benefits offer which allows employees to
make savings as they load value onto their cards, to then use when
shopping on the high street, at the supermarket, to book holidays
and to get discounted experience days out. Our digital offering
also continues to expand with new products and services. In June,
we launched Evolve, an on-line, fully responsive digital platform
offering instant rewards through a branded on-line platform. 40
businesses have already used the system including household names
such as EDF, Canon, Office Angels and Coral and a strong pipeline
of activity gives great reason for optimism. Engage, our scheme
management portal launched last year has also been well received.
Engage allows corporate users to create and control web or smart
device based programmes for their customers or staff.
"Park's relationship with MasterCard continues to develop and
broaden. We started in 2015 by issuing the "Anywhere" and "Online"
prepaid cards using a third party and we are currently working
towards launching our first MasterCard product under our own
issuing license.
Consumer
"Our Consumer business offers customers the ability to save for
the festive season typically over a 45 week period, to purchase a
range of gift cards, vouchers, hampers and gifts. The marketing
campaign for 2016 ended a few months ago and has resulted in an
order book some four per cent ahead of the previous year. Marketing
for the 2017 festive period is already underway with our television
advertising campaign beginning this week. Over the past few months,
we have also improved our website functionality and launched a
mobile app, all as part of our commitment to constant customer
service enhancement.
Outlook
"Park is a seasonal business, which is usually loss making in
the first half, as over three quarters of revenue is generated in
the second half of the year. Nevertheless the first half
performance is crucial as it lays the foundation for the full
year's result as orders are secured during the period, but not
dispatched and invoiced until the second half. As a seasonal
business our full year results will be determined over the coming
calendar months as we complete the deliveries for our prepaid
consumer customers and process orders for our corporate and
e-commerce customers.
"Cash balances, including monies held in trust, are around GBP18
million ahead of this time last year at GBP200 million. This
increased figure largely reflects the growth in our order books,
principally for the highly seasonal consumer business.
"Park is well placed with strong order books and sound finances.
The experience gained over many successful years, coupled with our
sophisticated and proven delivery and monitoring systems, mean we
can be confident of another positive outcome. Trading is in line
with expectations as we enter the busiest period of the year. We
are therefore confident of another successful year ahead."
Board Appointment
"This morning, we also announced that Mr. John Gittins has been
appointed to the board as a non-executive director. John has more
than 20 years' experience as a Chief Financial Officer at listed
PLCs in a range of sectors and territories and over six years'
experience as a non-executive director. We look forward to working
with him and are confident that we will benefit from his extensive
experience and expertise."
For further information please contact:
Park Group plc Arden Partners Tavistock Communications
plc
Chris Houghton Steve Douglas Andrew Dunn
Martin Stewart Benjamin Cryer Jeremy Carey
Tel: 0151 653 Tel: 020 7614 Tel: 020 7920
1700 5920 3150
This information is provided by RNS
The company news service from the London Stock Exchange
END
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