TIDMPKG
RNS Number : 5762P
Park Group PLC
09 June 2015
PARK GROUP PLC
('Park' or the 'Group' or the 'Company')
9 June 2015
Preliminary Results for the Year Ended 31 March 2015
Summary
Park Group plc is the UK's leading multi-redemption voucher and
prepaid card business focussed on the corporate and consumer
markets. Sales are generated through our direct sales force,
e-commerce and agents.
Financial highlights
-- 24 per cent increase in operating profit to
GBP9.7m (2014 - GBP7.8m)
-- 16 per cent growth in profit before tax to
GBP10.9m (2014 - GBP9.4m)
-- 11 per cent advance in billings to GBP372.9m
(2014 - GBP336.0m)
-- Proposed final dividend of 1.60p per share
taking the total dividend for the year to
2.40p per share (2014 - 2.30p per share),
a rise of 4.3 per cent
-- Total cash balances peaked at GBP189m (2014
- GBP165m). Year end cash balance of GBP23.2m
(2014 - GBP14.8m) with a further GBP65.7m
(2014 - GBP57.5m) of monies held in trust
Operational highlights
-- Park maintained the momentum of the strong
first half and delivered an excellent set
of results for the year
-- Park's growth strategy has remained consistent
and continues to deliver reliable and growing
returns for investors
-- Corporate billings grew by 14.0 per cent to
GBP176.1m (2014 restated - GBP154.5m)
-- Billings for the consumer business rose 8.4
per cent to GBP196.8m (2014 restated - GBP181.5m)
-- Online billings advanced 28 per cent to reach
GBP21.5m (2014 - GBP16.9m). During the year
the hightstreetvouchers.com site served 200,000
orders and received 3.5m visitors
-- The dominant use of the internet as a form
of communication means that in the year 86
per cent (2014 - 81 per cent) of new Christmas
orders from first time customers were placed
online
-- The order book for Christmas 2015 is well
ahead of last year
Chris Houghton, Chief Executive Officer, commented: 'Park
delivered an excellent result for the year under review with strong
profit and revenue growth across the organisation and continued
investment in systems, backed by healthy cash flows and a balance
sheet free of bank borrowing. Trading momentum is continuing in the
current year, which has started strongly. We look forward with
confidence and anticipate another period of sustained growth.'
Park Group plc Arden Partners Tavistock
plc
Chris Houghton Steve Douglas Andrew Dunn
Martin Stewart Michael McNeilly Jeremy Carey
Tel: 0151 653 Tel: 020 7614 Tel: 020 7920
1700 5920 3150
Chairman's Statement
I am delighted to report that Park Group has maintained the
momentum of its strong first half and delivered an excellent set of
results for the year ended 31 March 2015. This impressive
performance reflects the sustained improvement in market conditions
and our ability to capitalise on growth opportunities through the
launch of new products and further advances in customer
service.
Park's growth strategy has remained consistent and is delivering
reliable and growing returns for investors. The Group's principal
areas of operation continue to be the consumer savings and
corporate reward and incentive markets, but the manner in which
these markets are served by Park has changed beyond recognition
over the past decade, driven by Park's investment in and ongoing
development of information technology (IT), the internet and
'smart' device channels. We have utilised these technologies to
drive new product development, marketing innovation and customer
service. Our strategy has been implemented patiently and
consistently, however the cumulative impact over the years has been
transformational.
Financial performance
Group profit before taxation for the year to 31 March 2015
increased by 16.3 per cent to GBP10.9m (2014 - GBP9.4m) and
operating profit rose to GBP9.7m (2014 - GBP7.8m). Finance income
was lower than the previous year at GBP1.2m (2014 - GBP1.6m) on
higher average cash balances, but with lower average returns in the
year. Interest rates in the money markets remain low and Park's
return on its cash is largely dependent on these rates. While
enhanced returns may be available from investment in higher risk
products and instruments, this would be incompatible with the
Company's cautious and low risk approach to cash management, which
focuses on consumer protection.
Customer billings advanced by 11.0 per cent to GBP372.9m (2014 -
GBP336.0m) while revenue increased to GBP293.3m (2014 - GBP269.6m).
Customer billings, as we have highlighted in previous reports, is a
more appropriate measure of performance than revenue. It is linked
to the introduction in June 2010 of flexecash(R), Park's
proprietary payment system, and the associated change in the way in
which the Group is required to report revenue earned from its
prepaid card offering.
Dividend
In the interim statement, issued in December 2014, we announced
our intention to adjust the balance between the interim and final
dividend so that the interim payment is closer to one third of the
total dividend for the year. As a result of the strong trading
performance and the Company's significant and growing cash
resources, the board is recommending the payment of a final
dividend for the year of 1.60p per share, making a total dividend
for the year of 2.40p per share (2014 - 2.30p). This is equivalent
to an increase of 4.3 per cent. Shareholder approval will be sought
at the annual general meeting (AGM) to be held on 24 September 2015
to pay the final dividend on 1 October 2015 to shareholders on the
register on 28 August 2015.
Operating performance
Park's businesses service both the consumer and corporate
markets, sectors where demand has been affected by the tough
economic environment of recent years. While it is commendable that
our businesses have been successful in adjusting to this scenario
and growing sales and profits, the challenging market conditions
certainly dampened the advance in the trading performance. The
recovery in the UK economy, which started to become evident in
2013, is now established and reflected in our current trading
performance. Park's performance has been resilient because of the
manner in which the business has utilised skills and ingenuity
across the Group to better understand and service its customers'
needs. Park increased investment in advanced systems and internet
technology specifically to raise service levels and develop new
products to further enhance the customer experience. The
combination of these factors has placed Park in a sound, confident
position in the various markets in which it operates.
The corporate business made further good progress, supplying an
extensive range of gift cards, vouchers and e-codes for online use.
Billings advanced strongly as new opportunities were successfully
secured, more than offsetting continued lower demand from the
credit sector. The corporate business has secured new business from
many smaller customers so that the overall operation is more
resilient than before being less dependent on a small number of
large customers.
The consumer business, which offers customers a reliable,
effective and convenient way to build savings for the festive
season over a 45 week period, showed significant improvement. The
order book increased by 8.4 per cent compared with the previous
year. More than 90 per cent of orders are booked each year by the
end of February, providing a clear view of the likely outturn for
the next fiscal year. The marketing campaign for Christmas 2015
ended some months ago and was well received, with orders showing a
similar level of increase year-on-year.
Strategy
Park has a robust and successful strategy, which has built
stable foundations for the business and enabled it to deliver a
strong financial performance. Today, the Company is a significant
e-commerce and financial services business, which utilises the
power of the internet and the latest advances in communications
technologies and 'smart' platforms, to offer customers a wide and
exciting range of incentive, reward and Christmas savings products.
This is underpinned by Park's continued commitment to investment
and excellent customer service.
We will consider acquisition opportunities as they arise,
provided they meet our market, financial and strategic objectives.
We continue to cautiously assess opportunities for expanding our
European business into new territories.
Employees
While our business performance is driven by technology, people
remain our principal asset. On behalf of the directors and
shareholders, I would like to thank all our employees for their
unceasing commitment and enthusiasm during a year of considerable
further progress for Park.
Current trading and outlook
The trading momentum of the year under review has been
maintained into the current year, which has started well. Orders
for our savings business are well ahead of the same stage last year
and the corporate operation is continuing to make excellent
progress. The outlook for Park is very encouraging. We are well
placed to deliver further organic growth, enhance our financial
performance and achieve a result in line with the expectations of
our stakeholders.
Peter Johnson
Non-executive Chairman
9 June 2015
Chief Executive's Review
Park has delivered an excellent result for the year under review
with strong profit and revenue growth across the organisation and
continued investment in systems, backed by healthy cash flows and a
balance sheet free of bank borrowing. The Company has a large and
growing customer base, serving both the consumer and corporate
sectors with innovative solutions to match their needs and
expectations.
The business environment in the UK improved steadily during the
year and this, linked with the associated rise in consumer
confidence, has been a continuing positive influence on Park's
operations. The Company has adhered to its stated strategy during
recent years, performing solidly despite economic conditions and is
now in an encouraging position to capitalise on the improving
marketplace.
The results for the year ended 31 March 2015, reflect the
robustness of our business model and the successful implementation
of our consistent strategy, which has four key aims:
-- to enhance our retailer proposition;
-- to grow our multichannel offering;
-- to expand the customer base; and,
-- to develop and exploit our infrastructure.
During the year, further good progress was made in delivering
against each of these strategic strands. We continue to be
disciplined in our adherence to these ideals, as we believe they
are important to the growth of our organisation, offering the Group
an inherent flexibility which allows us to manage a wide range of
changing market conditions.
Our business model has evolved progressively over the years
alongside the strategy, and this combination has successfully
transformed Park into a Company which today is unrecognisable from
what it was just a decade ago. The advances have been in measured,
patient steps and will continue to ensure that we progressively
build and develop the business from a sound base. Such
transformation has required major investment in product development
and a dramatic improvement in our IT and internet capabilities.
While Park has been transformed, it has consistently focused on its
core historic values of providing customers with excellent value
products and services, backed by first class customer
relations.
The cash position is very strong, delivering the necessary
resource to drive growth and provide working capital. Total cash
balances ended the year at GBP89m (2014 - GBP73m).
Park's emphasis on customer service and improving efficiencies
is leading to the progressive elimination of manual procedures
within the Company through investment in sophisticated, customised
IT systems and infrastructure. Annual capital expenditure on IT
runs at approximately GBP700,000 with a total spend, including
technical support, in the region of GBP3.6m. This is a significant
investment and commitment for a business the size of Park. In 2014,
the Company had its ISO27001 accreditation renewed; meaning that
the Group has met the international standard describing best
practice for an information security management system.
During the year our data centres were refurbished and upgraded
with the installation of new flooring and enhanced air conditioning
equipment. The fire suppression, flood protection and smoke
detector systems were also replaced by those utilising the latest
technology. This is part of a rolling improvement and investment
programme to maintain state-of-the-art conditions for Park's
technology systems, which now constitute the heart of our
operations.
The development of new products is an ongoing process at Park.
The successful introduction of the flexecash(R) prepaid card in
2010 represented a step change for the business and moved it into
areas which previously had not been accessible. Since launch,
flexecash(R) cards have had over GBP320m of value loaded with 65
(2014 - 62) brands accepting the card. The card is available
alongside the Love2shop voucher, which is supported by 144 (2014 -
132) brands. In Ireland, 43 (2014 - 41) brands accept the voucher
and 15 (2014 - 12) brands accept the flexecash(R) card. The card
and voucher are complementary with relatively little
substitution.
Park has also capitalised on its position as a leading prepaid
card provider through the development and introduction of many new
products. The recent launch of its 'Anywhere' and 'Online' cards is
a significant development. The 'Anywhere' card is a MasterCard
which allows users to make purchases from any retailer that accepts
MasterCard, not just a retailer linked to the Love2shop brand. The
customer pays a small premium for a preloaded 'Anywhere' card but,
as the name suggests, it comes with the freedom to spend the
embedded value at any outlet that accepts MasterCard. The 'Online'
card is sold at face value and can be spent online with a wide
range of retailers. Customers appreciate the freedom and
flexibility these products offer and sales are growing. In
addition, the 'Anywhere' card represents an important development
and further related products are being developed. These new cards
are already having a significant impact and broadening Park's
offering to its savings customers.
The programme to refresh or redesign Company websites continues.
One of the results of this work has led to online traffic moving
onto the redesigned Love2shop site. The principal benefit of
consolidating more users onto one site is to allow greater
opportunity for cross-selling between different applications.
Love2shop is a strategic e-commerce and card management website. It
sells products plus peripherals including e-wallets, e-codes and
card top-ups.
The process of topping-up a Park Card with additional funds
previously involved some form of human interaction but now, as part
of the Company's focus on customer service and efficiency, it is
possible for self-service customers to top up their cards via new
automated processes. These advances bring significant benefits for
customers as the processing and credit checking procedures are
fully automated and secure.
The dominant use of the internet as a form of communication
means that in the year under review 86 per cent (2014 - 81 per
cent) of new orders from first time customers were placed
electronically. Automating manual processes also brings greater
flexibility for customers as they can initiate actions at times and
locations which suit them.
An increasing number of savings customers use direct debits to
renew their programme each year. This feature is not only
convenient and useful for the customer, but it also has
considerable benefits to Park as memberships automatically renew,
thus saving administration costs and ensuring that customers do not
miss the opportunity to commence a new savings programme.
Social media is a useful communication device for customers and
also provides Park with important insight into its customers' views
and opinions. Park has some 72,000 (2014 - 60,000) 'likes' on its
Facebook Christmas savings page and this provides valuable and
instant market research. If issues are being discussed on Facebook,
Park can respond rapidly to advise, comment on, or rectify any
situation and in many cases, customers can answer the queries of
other users, reducing the need for our direct involvement. Facebook
is Park's most important social media outlet and provides an
effective way of engaging with this growing audience.
In October 2010 Park expanded into the Eurozone following the
purchase of an Irish business. This was an exciting development as
it allowed the Company to build its product offering in a new
territory and also saw the creation of Park products denominated in
Euros. Progress to date is encouraging, with agreements reached
with 50 retailers in nine countries and billings growing
steadily.
Corporate
The corporate business supplies a range of products, principally
to the incentive and reward markets, where they are used to
motivate employees and recognise achievement. Independent research
by the UK Gift Card & Voucher Association estimates that the
gift voucher, gift card and stored value solutions market is worth
close to GBP5bn, having grown by approximately eight per cent
during 2014.
The number of Park's corporate customers by the year end had
reached a record 7,509 (2014 - 6,798), this reflects not only
growth in the marketplace but also our success in expanding share
of this exciting market. The corporate business directs its sales
teams and specialists to work alongside customers to develop
branded schemes tailored to meet the individual requirements of end
users. This 'personalised service' is one of the strengths of
Park's operation and demonstrates the knowledge and experience of
the sales teams, drawing on years of know-how to ensure that each
customer is offered the application that best matches its needs.
Customer retention during the year improved to 84 per cent (2014 -
83 per cent). This is encouraging as a proportion of customers in
this space operate 'one off' schemes.
The business has maintained the strong progress of the first
half and achieved an excellent result. Billings grew by 14.0 per
cent to GBP176.1m (2014 restated - GBP154.5m) and operating profit
rose by 32.6 per cent to GBP6.5m (2014 restated - GBP4.9m). Sales
to a major customer in the credit sector have declined
significantly over the past two years and it is a sign of the
underlying strength of our business that, if the credit sector was
excluded from these results, billings would have risen by 22 per
cent compared with the previous year.
A feature of the year has been the high level of interest from
corporate customers seeking to introduce new, or continue with
existing, incentive and reward plans. These plans can take many
different forms and are customised to match the requirement of each
customer so as to optimise the benefit to its staff. The Love2shop
voucher is used in many schemes and delivered an increase in
revenue of 13.5 per cent compared with the previous year. Billings
for the flexecash(R) prepaid card, excluding the credit sector,
were also very strong, rising by 32 per cent.
An increasing number of businesses are using flexecash(R) as a
way to reward and incentivise their clients, employees or
customers. Its ease of use, coupled with its acceptability at
thousands of retail outlets, makes it the ideal gift or reward card
product. The number of retailers accepting the card continues to
rise, and new retailers are being added to improve choice.
The Everyday Benefits card, which is an employee voluntary
benefit product, has achieved further strong sales attracting many
new corporate users. Staff receive the card as part of each
Company's incentive and reward schemes with appropriate value
already loaded. The card is being used by a major retailer to
reward its 50,000 staff in the UK for exceptional performance. A
further attractive feature of the Everyday Benefits scheme is that
employees can then top-up the card themselves, by loading funds
onto it at a discounted rate. This part reward/part benefit card
is, we believe, unique in the UK.
Love2shop Holidays (formerly Park Travel) provides another
avenue of redemption for the Love2shop brand; the operation has
continued to grow this year with bookings and revenue increasing 16
per cent. We have won a number of travel incentive schemes in the
building sector, which are using holidays as the principal
reward.
In the interim results we noted that the results of the online
operation, hightstreetvouchers.com, are now included with those of
the corporate business as the majority of billings generated from
that site related to corporate customers. The online business is
one of the most important and fastest developing components of
Park. It has been growing rapidly for a number of years and in the
year under review billings increased by a further 28 per cent to
reach GBP21.5m (2014 - GBP16.9m). This dynamic progress
demonstrates customers' preference for the flexibility offered by
self-serve web sites, where users can interact with the Company at
any time of the day or night to place or manage any aspect of their
order, including delivery arrangements. hightstreetvouchers.com
ended the year with 200,000 orders and the site received 3.5m
visitors.
The site is also very popular with overseas customers wishing to
purchase gifts for UK based friends and relatives. In the year,
more than 20,000 orders, with a total value in excess of GBP1.2m,
were placed from overseas with a significant proportion coming from
customers in Australia, Germany and the USA.
A further example of new product development from our focus on
applying technology has been the introduction of 'Engage', a new,
completely digital platform for the corporate incentive and reward
market. This modular platform allows corporate users to create
entirely web and 'smart' device based programmes for their
customers or staff. The system can also incorporate any existing
schemes each business may already be running and provides real-time
statistics and information to each business on the uptake and
success of each scheme. 'Engage' was developed during the period
under review and launched in April 2015.
Consumer
Park has built a large and loyal customer base over many years.
The Christmas savings concept is particularly attractive to
individuals, because it introduces control and discipline into a
family's financial preparation for the festive season. It
encourages saving by spreading payments over a 45 week period with
products being delivered in the weeks running up to Christmas.
Inevitably, the business was affected by the economic downturn but
the resilience of the operation and the loyalty of its customers
reduced the impact. The continuing improvement in consumer
confidence and economic activity has been positively reflected in
our trading performance for the period.
The business delivered an excellent result in the year under
review. Billings rose 8.4 per cent to GBP196.8m (2014 restated -
GBP181.5m) while operating profit increased by 10.9 per cent to
GBP5.9m (2014 restated - GBP5.4m). The business experienced solid
growth with the number of customers increasing by 2.9 per cent to
424,000 (2014 - 412,000) while the number of accounts grew by 14.0
per cent to 145,000 (2014 - 127,000). Average order size was also
ahead of the same period last year, reaching GBP463 (2014 -
GBP440).
The variety of consumer products available is extensive, ranging
from prepaid cards to gifts and store vouchers to hampers. Park's
Love2shop prepaid cards and vouchers can be spent at over 20,000
high street stores, restaurants and attractions, making it the UK's
most popular multi-retailer gift product. Retailers joining
Love2shop in the year included Beaverbrooks, Currys PC World, The
Perfume Shop and Waterstones. We also offer cards and vouchers
issued by leading retailers, including Amazon, Debenhams, Marks
& Spencer and Sports Direct, which can be spent in their own
outlets only. For those customers who prefer to buy direct from
Park, our gift catalogue contains thousands of popular items, which
make perfect Christmas gifts. Hampers, the original Park business
launched in 1967, continue to be available but now represent only
four per cent of total Park billings.
Product innovation is a key feature of the consumer business and
enables it to keep pace with the changing needs and tastes of
customers. The new 'Combi' offer is a particularly important
development, which has generated significant and growing demand.
Combi provides customers with two cards, a Love2shop card and one
from either ASDA or Morrisons. This card combination enables Park's
customers to have access to certain national retailers, which would
otherwise not have been available. The response to Combi has been
excellent and the scheme has been broadened for the current year
with Primark and Sainsbury's joining. Discussions are in progress
with other leading retailers, attracted by the opportunities
offered by this exciting new product combination. The early Combi
orders for Christmas 2015 show a large increase over the previous
year, reflecting the appeal of this innovative approach.
Marketing is at the heart of the success of our consumer
business with advertising for each Christmas campaign beginning
during the previous year and is principally via television. The
campaign usually commences in September and runs for six months to
February. By the time the campaign finishes most customers will
have commenced their 45 week savings scheme. This lengthy savings
period gives Park clear visibility of how the year is developing,
and also enables the Company to fine tune the campaign for the
following Christmas.
Park's business in Ireland made further steady progress and it
is encouraging that billings were five per cent ahead of the level
of the previous year. The number of customer accounts also
increased and the average spend per customer rose. After a detailed
review, the product range has been rationalised to meet the
particular requirements of this market. The Love2shop voucher is
now redeemable at 43 major retailers and the prepaid card is
accepted by 15. The Irish market is small in comparison to the UK
but has provided a valuable introduction to the challenges inherent
in launching in new geographical territories and currencies.
During the year we have continued to invest in product
development, system functionality and IT hardware. This will help
us to remain flexible and allows us to continue to offer appealing
products and outstanding service to our expanding range of
customers, whatever their circumstances or requirements.
We look forward to the coming year with confidence and
anticipate another period of sustained growth.
Chris Houghton
Chief Executive Officer
9 June 2015
Financial Review
Profit from operations
The Group's operations are divided into two operating
segments:
- consumer, which represents the Group's sales
to consumers, utilising its Christmas savings
offering ; and
- corporate, comprising the Group's sales to
businesses, offering primarily sales of the
Love2shop voucher, flexecash(R) cards and
other retailer vouchers to businesses for
use as staff rewards/incentives, marketing
aids and prizes.
At the start of the year, our online business,
highstreetvouchers.com was transferred from our consumer business
to our corporate business as the majority of sales value generated
from this online business related to corporate customers.
Previously reported figures have been restated. Full details are
given in note 9.
All other segments comprise central costs and property
costs.
Billings have increased when compared to the prior year by 11.0
per cent to GBP372.9m, with revenue increasing on the same basis by
8.8 per cent to GBP293.3m. The increase in revenue is smaller than
the increase in billings year on year, due to the higher proportion
of billings arising from flexecash(R) cards. Revenue earned from
the sale of flexecash(R) cards is recognised differently from all
other customer billings, as explained below.
Revenue and margin from sales of Love2shop vouchers and
flexecash(R) cards are generated from both operating segments.
Operating profit is detailed below:
Restated
2015 2014 Change
GBP'000 GBP'000 GBP'000
------------------- -------- -------- --------
Consumer 5,933 5,352 581
------------------- -------- -------- --------
Corporate 6,465 4,874 1,591
------------------- -------- -------- --------
All other segments (2,710) (2,398) (312)
------------------- -------- -------- --------
Operating profit 9,688 7,828 1,860
------------------- -------- -------- --------
Operating profit for the year ended 31 March 2015 has increased
by GBP1.9m to GBP9.7m.
In the consumer business, customer billings have increased by
8.4 per cent to GBP196.8m. Revenue has also increased by 2.1 per
cent to GBP164.7m. Operating profit at GBP5.9m has increased by
GBP0.6m from that achieved in the prior year. The increase in
billings reflects the higher level of customer prepayment orders
fulfilled in the UK for Christmas 2014 at GBP189.3m. Billings in
respect of flexecash(R) cards totalled GBP32.5m (2014 -
GBP21.1m).
In the corporate business, customer billings have increased by
GBP21.6m (14.0 per cent) in the year to GBP176.1m. Growth in
billings in the incentive and reward sector was again strong, up
GBP20.3m (23.2 per cent) in the year. In addition, in the employee
benefits and cash replacement sectors billings increased by
GBP8.6m. In contrast, billings in the credit sector were GBP8.7m
lower than last year principally due to a reduction in the value
processed through the flexecash(R) card system. Revenue has
increased by GBP20.4m to GBP128.6m. The growth in operating profits
of GBP1.6m to GBP6.5m reflects the strong growth in billings.
Billings in respect of flexecash(R) cards totalled GBP54.0m (2014 -
GBP50.0m).
The increased costs in other segments of GBP0.3m reflects
primarily an increase in staff costs.
Finance income
Finance income declined from GBP1.6m to GBP1.2m reflecting lower
market interest rates available. This reduction was in spite of an
increase of approximately GBP18m in average total cash balances
including monies held in trust, to just under GBP121m, over the
prior year.
Taxation
The effective tax rate for the year was 22.3 per cent (2014 -
22.6 per cent) of profit before tax.
Earnings per share
Basic earnings per share (eps) increased to 4.66p from
4.16p.
Dividends
The board has recommended a final dividend of 1.60p per share.
An interim dividend of 0.80p per share was paid on 7 April 2015.
Subject to approval of the final dividend at the AGM, the total
dividend for 2015 will be 2.40p per share representing an increase
of 4.3 per cent over the prior year.
Cash flows
At the end of March 2015 GBP26.3m (2014 - GBP14.8m) of cash and
cash equivalents offset by a cash book overdraft of GBP3.1m (2014 -
nil) was held by the Group with a further GBP0.5m (2014 -GBP0.5m)
held as deposits with a maturity period of greater than three
months but less than 12 months. In addition, GBP50.9m (2014 -
GBP45.4m) was held by the Park Prepayments Trustee Company Limited.
The trust holds payments received in respect of orders for delivery
the following Christmas. The conditions for the release of this
money to the Group are detailed in the trust deed, which is
available at www.getpark.co.uk. In addition, at 31 March 2015, the
Group held GBP14.9m (2014 - GBP12.1m) of cash in the Park Card
Services Limited E money Trust (PCSET) to support the E money float
in accordance with regulatory requirements.
The total amount of cash and deposits net of any overdraft
position held by the Group combined with the monies held in trust
has increased in the year to GBP89.5m from GBP72.9m as at 31 March
2014. These total balances peaked at just under GBP189m in the
year, representing an increase of almost GBP24m over last year.
This was due to the increased volumes of cash receipts associated
with higher level of billings generally across all areas of the
Group.
During the year the Group has transferred both of its investment
properties into assets held for sale, with one property sold in the
year for proceeds of GBP45,000 (less cost to sell) and the
remaining property being written down to a book value of GBP39,000.
Impairment charges in the year in respect of these properties
amounted to GBP109,000. The Group has also capitalised a further
GBP0.6m (2014 - GBP1.0m) of expenditure incurred in improving its
customer facing systems, infrastructure and associated computer
hardware.
Interest income received from maturing deposits declined from
GBP1.9m to GBP1.2m reflecting the general decline in rates being
offered for new bank deposits over the previous year.
Provisions
At the year end, provisions had increased to GBP43.2m from
GBP37.2m. This was mainly due to an increase in the provision for
unspent vouchers of GBP5.6m, accompanied by an increase in the
amounts provided in respect of flexecash(R) cards of GBP0.3m. The
value of unspent vouchers included in the provision, arises
primarily from sales in the corporate business. Included within
provisions is an amount of GBP80,000 (2014 - GBP53,000) in respect
of future expected settlements of claims arising from the
mis-selling of payment protection insurance. The Group ceased to
sell this insurance in 2007 when it closed its loan broking
business.
Accounting policies
Revenue recognition
Revenue from cards is recorded differently to revenue from paper
vouchers and comprises the fees earned based on customer billings,
recognised when the value loaded on the card has been redeemed.
Where cards are sold to businesses for onward gifting to consumers
with no right of redemption, revenue also includes an estimate of
projected balances remaining on the card at expiry. The amount
included in this year's income statement as revenue from
flexecash(R) cards is GBP7.4m (2014 - GBP5.4m).
Pensions
The Group continues to operate two defined benefit pension
schemes, where pensions at retirement are based on service and
final salary. These schemes are now closed to future accrual of
benefit arising from service with the Group. The net pension
deficit based on the valuation under IAS19 Employee Benefits (2011
revised) performed at 31 March 2015 has increased to GBP1.3m (2014
- GBP1.2m).
The Group has recognised a cost of GBP42,000 (2014 - credit of
GBP1,000) in the income statement, and remeasurements in the
statement of comprehensive income (SOCI) of a loss of GBP0.6m (2014
- loss of GBP1.3m) net of tax.
In the year ended 31 March 2015, contributions by the Group to
the schemes totalled GBP0.7m (2014 - GBP0.7m). The latest actuarial
valuations performed as at 31 March 2013 indicated that one scheme
had a technical provisions deficit (reflecting the liabilities to
pay pension benefits in relation to past service as they fall due)
of GBP3.8m and one had a surplus on the same basis of GBP0.6m.
Future Group contributions to the scheme that is in deficit are
expected to be GBP0.7m per annum.
Martin Stewart
Group Finance Director
9 June 2015
Risk factors
Financial risks
--------------------------------------------------------------------------------
Risk area Potential impact Mitigation
--------------- ----------------------- --------------------------------------
Group funding The Group, like The Group manages its capital
many other companies, to safeguard its ability to
depends on its operate as a going concern.
ability to continue Whilst the Group has net liabilities
to service its and net current liabilities,
debts as they it has access to funds for
fall due and working capital from the Park
to have access Prepayment Protection Trust
to finance where (PPPT) for a defined period
this is necessary. in the year. This enables it
to operate without bank borrowings.
In addition the Group has a
high level of visibility of
future revenue streams from
its consumer business. The
funding requirements of the
business are continually reforecast
to ensure that sufficient liquidity
exists to support its operations
and future plans.
--------------- ----------------------- --------------------------------------
Treasury The Group has The Group treasury policy ensures
risks significant funds that funds are only placed
on deposit and with and spread between high
as such is exposed quality counterparties and
to interest rate where appropriate any exchange
risk, counterparty rate exposure is managed to
risk and exchange minimise any potential impact.
rate movements
following the
commencement
of operations
in Ireland.
--------------- ----------------------- --------------------------------------
Banking Disruption to The Group seeks wherever possible
system the banking system to offer the widest possible
would adversely range of payment options to
impact on the customers to reduce the potential
Group's ability impact of failure of a single
to collect payments payment route.
from customers
and could adversely
affect the Group's
cash position.
--------------- ----------------------- --------------------------------------
Pension The Group may The Group's pension schemes
funding be required to are closed to future benefit
increase its accrual related to service.
contributions Funding rates are in accordance
to cover any with the actuaries' recommendations.
funding shortfalls.
--------------- ----------------------- --------------------------------------
Financial The business The Group has a regulatory
services model may be team that monitors and enforces
and other compromised by compliance with existing regulations
market changes in existing and keeps the Group up to date
regulation regulation or with impending regulation.
by the introduction The Group shares the objectives
of new regulation. of Government in treating customers
Possible new fairly and in the protection
regulation could of customer prepayments. The
include a requirement Group operates a number of
to ring fence trusts to safeguard funds held
funds for vouchers on behalf of customers. In
sold to consumers. the event of new regulation
This could adversely being introduced that requires
affect the Group's additional cash to be segregated,
cash position. the Group has access to other
potential sources of funds,
if required.
--------------- ----------------------- --------------------------------------
Credit Failure of one Customers are given an appropriate
risks or more customers level of credit based on their
and the risk trading history and financial
of default by status, a prudent approach
credit customers is adopted towards credit control.
due to reduced Credit insurance is used in
economic activity. the majority of cases where
customers do not pay in advance.
--------------- ----------------------- --------------------------------------
Operational risks
----------------------------------------------------------------------------------------
Risk area Potential impact Mitigation
------------------ -------------------------- ----------------------------------------
Business Failure to provide The Group plans and tests its
continuity adequate service business continuity procedures
and IT levels to customers, in preparation for catastrophic
systems retail partners events and for the existence
or other suppliers, of counterfeit vouchers or
resulting in cards.
a failure to Our focus is on the elimination
maintain services of any single point of failure
that generate in our IT systems.
revenue. The Group maintains three separate
data centres in relation to
its core infrastructure to
ensure that service is maintained
in the event of a disaster
at its primary data centre.
Developed software is extensively
tested prior to implementation.
------------------ -------------------------- ----------------------------------------
Loss of The Group depends Existing key appointments are
key management on its directors rewarded with competitive remuneration
and key personnel. packages including long term
The loss of the incentives linked to the Group's
services of any performance and shareholder
directors or return.
other key employees
could damage
the Group's business,
financial condition
and results.
------------------ -------------------------- ----------------------------------------
Relationships The Group is The Group has a dedicated team
with high dependent upon of managers whose role it is
street the success of to ensure that the Group's
and online its Love2shop products have a full range
retailers voucher and flexecash(R) of retailers. They also work
card. These products closely with all retailers
only operate to promote their businesses
provided the to Park's customers who utilise
participating Park's vouchers and cards to
retailers continue drive forward incremental sales
to accept them to their retail outlets. Contracts
as payment for which provide minimum notice
goods or services periods for withdrawal are
provided. The in place with all retailers
failure of one and are designed to mitigate
or more participating any potential impact on Park's
retailers could business.
make these products
less attractive
to customers.
------------------ -------------------------- ----------------------------------------
Failure The failure of Wherever possible the Group
of the the distribution seeks to utilise a wide range
distribution network during of geographically spread carriers
network the Christmas to mitigate the failure of
period, for example a single operator.
a Post Office
strike, road
network disruption
or fuel shortages
could adversely
impact the results
and reputation
of Park's brands.
------------------ -------------------------- ----------------------------------------
Brand perception Adverse market Ongoing investment in television
and reputation perception in advertising. Operation of a
relation to the process of continual review
Group's products of all marketing material and
or services, websites to promote transparency
for example, to customers. Extensive testing
following the and rigorous internal controls
collapse of a exist for all Group systems
competitor. This to maintain continuity of online
could result customer service.
in a downturn
in demand for
its products
and services.
------------------ -------------------------- ----------------------------------------
Promotional The success of Detailed management processes
activity the Group's annual that are designed to optimise
promotional campaign the cost of recruiting are
is essential in place. The effectiveness
to ensure the of each individual television
continued recruitment advert is assessed separately
of customers. and future plans amended where
Failure to recruit appropriate.
would result
in loss of revenue
to the Group.
Promotional activity
must also be
cost effective.
------------------ -------------------------- ----------------------------------------
Competition Loss of margins The Group has a broad base
or market share of customers and no single
arising from customer represents more than
increased activity 4 per cent of total customer
from competitors. billings.
Significant resources are dedicated
to developing and maintaining
strong relationships with customers
and to developing new and innovative
products which meet their precise
needs.
------------------ -------------------------- ----------------------------------------
Park Group plc
CONSOLIDATED INCOME STATEMENT
FOR THE YEAR TO 31 MARCH 2015
2015 2014
GBP'000 GBP'000
Billings 372,887 336,040
---------- ----------
Revenue 293,329 269,563
Cost of sales (265,966) (245,928)
---------- ----------
Gross profit 27,363 23,635
Distribution costs (2,761) (2,521)
Administrative expenses (14,914) (13,286)
---------- ----------
Operating profit 9,688 7,828
Finance income 1,246 1,578
Finance costs (1) (2)
---------- ----------
Profit before taxation 10,933 9,404
Taxation (2,434) (2,124)
---------- ----------
Profit for the year 8,499 7,280
---------- ----------
Attributable to:
Equity holders of the parent 8,499 7,409
Non-controlling interests - (129)
---------- ----------
8,499 7,280
---------- ----------
Earnings per share (see note
7)
: basic 4.66p 4.16p
: diluted 4.60p 4.14p
Park Group plc
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR TO 31 MARCH 2015
2015 2014
GBP'000 GBP'000
Profit for the year 8,499 7,280
Other comprehensive income
Items that will not be reclassified
to profit or loss:
Remeasurement of defined benefit
pension schemes (731) (1,585)
Deferred tax on defined benefit
pension schemes 146 317
-------- --------
(585) (1,268)
-------- --------
Items that may be reclassified subsequently
to profit or loss:
Foreign exchange translation differences 17 36
Other comprehensive income for the
year net of tax (568) (1,232)
-------- --------
Total comprehensive income for the
year 7,931 6,048
-------- --------
Attributable to:
Equity holders of the parent 7,931 6,177
Non-controlling interests - (129)
-------- --------
7,931 6,048
-------- --------
Park Group plc
CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 31 MARCH
2015
As at As at
31.03.15 31.03.14
GBP'000 GBP'000
Assets
Non-current assets
Goodwill 1,320 1,320
Other intangible assets 3,168 3,790
Investments 8 8
Investment property - 193
Property, plant and
equipment 8,143 8,433
Retirement benefit
asset 1,293 -
13,932 13,744
---------- ----------
Current assets
Inventories 3,186 1,557
Trade and other receivables 11,212 10,071
Other financial assets 500 500
Monies held in trust 65,728 57,514
Cash and cash equivalents 26,333 14,842
Assets held for sale 39 -
---------- ----------
106,998 84,484
---------- ----------
Total assets 120,930 98,228
---------- ----------
Liabilities
Current liabilities
Trade and other payables (73,569) (62,355)
Tax payable (1,435) (1,259)
Provisions (43,186) (37,234)
---------- ----------
(118,190) (100,848)
---------- ----------
Non-current liabilities
Deferred tax liability (273) (294)
Retirement benefit
obligation (2,634) (1,221)
---------- ----------
(2,907) (1,515)
---------- ----------
Total liabilities (121,097) (102,363)
---------- ----------
Net liabilities (167) (4,135)
---------- ----------
Equity attributable
to equity holders
of the parent
Share capital 3,650 3,650
Share premium 6,132 6,132
Retained earnings (9,638) (13,606)
Other reserves (311) -
Non-controlling interests - (311)
Total equity (167) (4,135)
---------- ----------
Park Group plc
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Total
Share Share Other Retained parent Non-controlling Total
capital Premium reserves earnings equity interests equity
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Balance at
1 April 2014 3,650 6,132 - (13,606) (3,824) (311) (4,135)
Total comprehensive
income for
the year
Profit - - - 8,499 8,499 - 8,499
Other comprehensive
income
Remeasurement
of defined
benefit pension
schemes - - - (731) (731) - (731)
Tax on defined
benefit pension
schemes - - - 146 146 - 146
Foreign exchange
translation
adjustments - - - 17 17 - 17
--------- --------- ----------- ----------- ---------- ---------------- ----------
Total other
comprehensive
income - - - (568) (568) - (568)
--------- --------- ----------- ----------- ---------- ---------------- ----------
Total comprehensive
income for
the year - - - 7,931 7,931 - 7,931
--------- --------- ----------- ----------- ---------- ---------------- ----------
Transactions
with owners,
recorded directly
in equity
Equity settled
share-based
payment transactions - - - 235 235 - 235
Purchase of
non-controlling
interest - - (311) - (311) 311 -
Dividends - - - (4,198) (4,198) - (4,198)
--------- --------- ----------- ----------- ---------- ---------------- ----------
Total contributions
by and distribution
to owners - - (311) (3,963) (4,274) 311 (3,963)
--------- --------- ----------- ----------- ---------- ---------------- ----------
Balance at
31 March 2015 3,650 6,132 (311) (9,638) (167) - (167)
--------- --------- ----------- ----------- ---------- ---------------- ----------
Balance at
1 April 2013 3,387 1,638 - (16,171) (11,146) (182) (11,328)
Total comprehensive
income for
the year
Profit - - - 7,409 7,409 (129) 7,280
Other comprehensive
income
Remeasurement
of defined
benefit pension
schemes - - - (1,585) (1,585) - (1,585)
Tax on defined
benefit pension
schemes - - - 317 317 - 317
Foreign exchange
translation
adjustments - - - 36 36 - 36
--------- --------- ----------- ----------- ---------- ---------------- ----------
Total other
comprehensive
income - - - (1,232) (1,232) - (1,232)
--------- --------- ----------- ----------- ---------- ---------------- ----------
Total comprehensive
income for
the year - - - 6,177 6,177 (129) 6,048
--------- --------- ----------- ----------- ---------- ---------------- ----------
Transactions
with owners,
recorded directly
in equity
Equity settled
share-based
payment transactions - - - 149 149 - 149
Issue of shares 168 4,242 - - 4,410 - 4,410
Issue costs
of shares - (187) - - (187) - (187)
Exercise of
share options 38 439 - - 477 - 477
LTIP shares
awarded 57 - - (57) - - -
Dividends - - - (3,704) (3,704) - (3,704)
--------- --------- ----------- ----------- ---------- ---------------- ----------
Total contributions
by and distribution
to owners 263 4,494 - (3,612) 1,145 - 1,145
--------- --------- ----------- ----------- ---------- ---------------- ----------
Balance at
31 March 2014 3,650 6,132 - (13,606) (3,824) (311) (4,135)
--------- --------- ----------- ----------- ---------- ---------------- ----------
Park Group plc
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR TO 31 MARCH 2015
2015 2014
GBP'000 GBP'000
Cash flows from operating activities
Cash generated from operations 14,106 4,092
Interest received 1,177 1,950
Interest paid (1) (2)
Tax paid (2,132) (2,079)
-------- ---------
Net cash generated from operating
activities 13,150 3,961
Cash flows from investing activities
Receipt of deferred consideration
arising from assets previously
held for sale - 52
Sale of investment property 41 -
Purchase of intangible assets (212) (591)
Purchase of property, plant and
equipment (385) (386)
Net cash used in investing activities (556) (925)
Cash flows from financing activities
Net proceeds from share placement - 4,223
Proceeds of exercise of share
options - 477
Dividends paid to shareholders (4,198) (3,704)
Net cash (used in)/generated from
financing activities (4,198) 996
-------- ---------
Net increase in cash and cash
equivalents 8,396 4,032
-------- ---------
Cash and cash equivalents at beginning
of period 14,842 10,810
-------- ---------
Cash and cash equivalents at end
of period 23,238 14,842
-------- ---------
Cash and cash equivalents comprise:
Cash 26,333 14,842
Bank overdrafts (3,095) -
-------- ---------
23,238 14,842
-------- ---------
NOTES TO THE PRELIMINARY RESULTS
(1) Basis of preparation
The financial statements have been prepared in accordance with
International Financial Reporting Standards (IFRS's) as adopted by
the European Union (EU) including International Financial Reporting
Interpretations Committee (IFRIC) interpretations and with those
parts of the Companies Act 2006 applicable to companies reporting
under IFRS.
Park Group plc is incorporated and domiciled in the United
Kingdom. The financial statements have been prepared under the
historical cost convention, as modified by the accounting for
financial instruments at fair value where required by IAS 39
Financial Instruments: Recognition and Measurement. The Group and
Company financial statements are presented in sterling and all
values are rounded to the nearest thousand (GBP'000) except where
otherwise stated.
The accounting policies have been applied consistently to all
periods presented in these financial statements and by all Group
entities.
(2) Going concern
The Group's business activities, together with factors likely to
affect its future development, performance and position, are set
out in the chief executives review. The financial position of the
Group, its cash flows, liquidity and solvency position and
financial risks are described in the financial review.
The Group's forecasts and projections, taking into account
reasonably possible changes in trading performance and customer
behaviour, show that the Group has sufficient financial resources
to fund the business for the foreseeable future despite the Group's
net liabilities and net current liabilities. Funds are utilised for
working capital purposes as permitted under the terms of the PPPT.
The Group's working capital requirements are dependent upon a
continuing level of prepaid sales to corporate customers and, at
certain times during the year, amounts drawn from the PPPT to meet
its working capital requirements. The Group's positive cash flow
from its ongoing customer base, together with the capability to
drawdown funds from the PPPT at certain times of the year, enables
it to operate without reliance on any external funding. The Group
continues to trade profitably and early indications for growth in
the current year are positive. Accordingly, the directors continue
to adopt the going concern basis in preparing the consolidated
financial statements.
(3) Changes to International Financial Reporting Standards
Interpretations and standards which became effective during the
year
The following accounting standards and interpretations, that are
relevant to the Group, became effective during the period:
IFRS 10, IFRS12 Investment Entities (amendment)
& IAS 27
IAS 32 Offsetting Financial Assets and
Financial Liabilities (amendment)
IAS 36 Recoverable Amount Disclosures
for Non-Financial Assets (amendment)
IFRIC 21 Levies
Adoption of these amendments and interpretations to standards
has not had a material impact upon the Group's financial
performance or position.
Interpretations and standards which have been issued and are not
yet effective
The following standards have been adopted by the EU but are not
yet effective for the year ended 31 March 2015 and have not been
applied in preparing the financial statements. Those standards that
have relevance to the Group are mentioned below:
Effective
from:
IAS Defined Benefit Plans: Employee 1 Jul
19 Contributions (amendment) 2014
IAS Clarification of Acceptable Methods 1 Jan
16 & of Depreciation and Amortisation 2016
IAS (amendment)
38
IAS Equity Method in Separate Financial 1 Jan
27 Statements (amendment) 2016
IAS Disclosure Initiatives (amendment) 1 Jan
1 2016
IFRS Investment Entities: Applying 1 Jan
10, the Consolidation Exception (amendment) 2016
IFRS
12 &
IAS
28
IFRS Financial Instruments 1 Jan
9 2018
The directors anticipate that the adoption of these standards
and interpretations in future periods will not have a material
impact on the financial statements when the relevant standards and
interpretations come into effect.
IFRS 15 Revenue from Contracts with Customers was released on 28
May 2014. The board of directors is currently considering the
impact of this standard on the Group's financial statements
including the timing of revenue recognition, income in respect of
vouchers and balances on cards which will never be spent and
whether revenue should be recognised on a gross or net basis in
respect of certain revenue streams.
(4) Accounting policies
The financial information in this preliminary announcement has
been prepared in accordance with the accounting policies described
in the annual report and accounts for the year ended 31 March 2014.
The annual report and accounts for the year ended 31 March 2014 can
be found on our website at www.parkgroup.co.uk.
(5) Segmental analysis
All other segments are those items relating to the corporate
activities of the Group which it is felt cannot be reasonably
allocated to either business segment.
The amount included within the other segments/elimination column
reflects vouchers sold by the corporate segment to the consumer
segment. They have been included in other segments/elimination so
as to show the total revenue for both segments.
All
All other other
segments/ 2015 Restated Restated segments/ 2014
Consumer Corporate elimination Total Consumer Corporate elimination Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Billings
External
billings 196,796 176,091 - 372,887 181,532 154,508 - 336,040
Inter-segment
billings - 135,667 (135,667) - - 133,216 (133,216) -
--------- ---------- ------------ -------- --------- ---------- ------------ --------
Total billings 196,796 311,758 (135,667) 372,887 181,532 287,724 (133,216) 336,040
--------- ---------- ------------ -------- --------- ---------- ------------ --------
Revenue
External
revenue 164,682 128,647 - 293,329 161,356 108,207 - 269,563
Inter-segment
revenue - 135,667 (135,667) - - 133,216 (133,216) -
--------- ---------- ------------ -------- --------- ---------- ------------ --------
Total revenue 164,682 264,314 (135,667) 293,329 161,356 241,423 (133,216) 269,563
--------- ---------- ------------ -------- --------- ---------- ------------ --------
Inter-segment sales are entered into under normal
arm's length commercial terms and conditions.
Result
Segment
operating
profit/(loss) 5,933 6,465 (2,710) 9,688 5,352 4,874 (2,398) 7,828
--------- ---------- ------------ -------- --------- ---------- ------------ --------
Finance
income 1,246 1,578
Finance
costs (1) (2)
-------- ------------
Profit before
taxation 10,933 9,404
Taxation (2,434) (2,124)
-------- ------------
Profit 8,499 7,280
-------- ------------
(6) Taxation 2015 2014
GBP'000 GBP'000
Charge for the year
- current and deferred 2,434 2,124
--------- ---------
Comments on the effective tax rate can be found in the financial
review.
(7) Earnings per share
The calculation of basic and diluted eps is based on the profit
on ordinary activities after taxation of GBP8,499,000 (2014 -
GBP7,409,000) and on the weighted average number of shares,
calculated as follows:
2015 2014
Basic eps - weighted average
number of shares 182,501,219 178,264,354
Diluting effect of employee
share options 2,202,818 554,375
------------ ------------
Diluted eps - weighted average
number of shares 184,704,037 178,818,729
------------ ------------
(8) Reconciliation of net profit to net cash inflow from operating activities
2015 2014
GBP'000 GBP'000
Net profit 8,499 7,280
Adjustments for:
Tax 2,434 2,124
Interest income (1,246) (1,578)
Interest expense 1 2
Depreciation and amortisation 1,497 1,442
Impairment of investment
property 95 52
--------
Impairment of other intangibles 16 110
--------
Impairment of assets held
for sale 14 -
--------
Impairment of goodwill - 44
Increase in inventories (1,629) (138)
Increase in trade and
other receivables (1,072) (2,986)
Increase in trade and
other payables 8,118 6,972
Increase in provisions 5,952 390
Increase in monies held
in trust (8,214) (9,201)
Decrease in retirement
benefit obligation (611) (672)
Translation adjustment 17 36
Share-based payments 235 215
-------- --------
Net cash inflow from operating
activities 14,106 4,092
-------- --------
(9) Restatement of prior period figures
The prior period figures have been restated for the
following:
At the beginning of the period under review our online business,
highstreetvouchers.com (HSV.com), was transferred from our consumer
business to our corporate business as the majority of sales value
generated from this online business related to corporate customers.
There is no impact on either the statement of financial position,
the income statement or the statement of other comprehensive
income. Previously reported segmental figures have been restated as
follows:
All
Consumer Corporate other Elimination Group
GBP'000 GBP'000 segments GBP'000 GBP'000
GBP'000
External billings
As reported at
31 March 2014 198,559 137,481 - - 336,040
Reclassification
of HSV.com (17,027) 17,027 - - -
----------- ------------ ---------- -------------- ----------
Balance as restated
at 31 March 2014 181,532 154,508 - - 336,040
----------- ------------ ---------- -------------- ----------
Inter-segment
billings
As reported at
31 March 2014 - 146,871 - (146,871) -
Reclassification
of HSV.com - (13,655) - 13,655 -
----------- ------------ ---------- -------------- ----------
Balance as restated
at 31 March 2014 - 133,216 - (133,216) -
----------- ------------ ---------- -------------- ----------
Total billings
As reported at
31 March 2014 198,559 284,352 - (146,871) 336,040
Reclassification
of HSV.com (17,027) 3,372 - 13,655 -
----------- ------------ ---------- -------------- ----------
Balance as restated
at 31 March 2014 181,532 287,724 - (133,216) 336,040
----------- ------------ ---------- -------------- ----------
External revenue
As reported at
31 March 2014 178,383 91,180 - - 269,563
Reclassification
of HSV.com (17,027) 17,027 - - -
----------- ------------ ---------- -------------- ----------
Balance as restated
at 31 March 2014 161,356 108,207 - - 269,563
----------- ------------ ---------- -------------- ----------
Inter-segment
revenue
As reported at
31 March 2014 - 146,871 - (146,871) -
Reclassification
of HSV.com - (13,655) - 13,655 -
----------- ------------ ---------- -------------- ----------
Balance as restated
at 31 March 2014 - 133,216 - (133,216) -
----------- ------------ ---------- -------------- ----------
Total revenue
As reported at
31 March 2014 178,383 238,051 - (146,871) 269,563
Reclassification
of HSV.com (17,027) 3,372 - 13,655 -
----------- ------------ ---------- -------------- ----------
Balance as restated
at 31 March 2014 161,356 241,423 - (133,216) 269,563
----------- ------------ ---------- -------------- ----------
Results
As reported at
31 March 2014 6,167 4,059 (2,398) 7,828
Reclassification
of HSV.com (815) 815 - -
Balance as restated
at 31 March 2014 5,352 4,874 (2,398) 7,828
----------- ------------ ---------- -------------- ----------
(10) Responsibility Statement
To the best of each director's knowledge:
-- the financial statements, prepared in accordance
with the applicable set of accounting standards,
give a true and fair view of the assets,
liabilities, financial position and profit
or loss of the Company and the undertakings
included in the consolidation taken as a
whole; and
-- the management report includes a fair review
of the development and performance of the
business and the position of the issuer and
the undertakings included in the consolidation
taken as a whole, together with a description
of the principal risks and uncertainties
that they face.
(11) The financial information set out above does not constitute
the Group's statutory accounts for the years ended 31 March 2015 or
2014 but is derived from those accounts.
Statutory accounts for 2014 have been delivered to the registrar
of companies. The auditor, Ernst & Young LLP, has reported on
the 2014 accounts; the report (i) was unqualified, (ii) did not
include a reference to any matters to which the auditor drew
attention by way of emphasis without qualifying their report, and
(iii) did not contain a statement under section 498(2) or (3) of
the Companies Act 2006.
The statutory accounts for 2015 will be delivered to the
registrar of companies following the AGM. The auditors have
reported on these accounts; their report is unqualified and does
not include a statement under either section 498(2) or (3) of the
Companies Act 2006.
The annual report will be posted to shareholders on or before 27
July 2015 and will be available from that date on the Group's
website: www.parkgroup.co.uk.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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