TIDMPKG
RNS Number : 4698H
Park Group PLC
01 December 2015
PARK GROUP PLC
('Park' or 'the Company' or 'the Group')
INTERIM RESULTS FOR THE SIX MONTHS TO 30 SEPTEMBER 2015
1 December 2015
Park Group is the UK's leading multi-retailer gift voucher and
prepaid gift card business focussed on the corporate and consumer
markets. Park's business is generally seasonal and the first half
of the year is traditionally loss making with the bulk of annual
revenues generated in the second half.
Year
Summary Half Year Half Year to
to 30.09.15 to 30.09.14 31.03.15
GBP'000 GBP'000 GBP'000
Customer billings 92,795 75,394 372,887
------------- ------------- -----------
Revenue 72,083 58,501 293,329
Operating (loss)/profit (2,170) (3,053) 9,688
(Loss)/profit before
taxation (1,404) (2,422) 10,933
(Loss)/profit for the
period (1,123) (1,913) 8,499
Dividend per share 0.85p 0.80p 2.40p
(Loss)/earnings per
share (0.62)p (1.05)p 4.66p
Key points: Financial
-- Billings rise 23.1 per cent to GBP92.8m (2014 - GBP75.4m)
-- Revenue increases 23.2 per cent to GBP72.1m (2014 - GBP58.5m)
-- Seasonal pre-tax loss reduces to GBP1.4m (2014 - loss GBP2.4m)
-- Interest receipts improve 21.2 per cent to GBP0.8m (2014 - GBP0.6m)
-- Dividend raised 6.3 per cent to 0.85p per share (2014 - 0.80p)
-- Cash balances peak at GBP206m (2014 - GBP189m)
Key points: Operations
-- Corporate billings up 12.8 per cent to GBP66.0m (2014 - GBP58.6m)
-- Consumer billings increase 59.0 per cent to GBP26.8m (2014 - GBP16.8m)
-- Online business continues to grow
Chris Houghton, chief executive officer, commented:
"The second half has started well, as we enter the key delivery
period, with orders significantly ahead of the same period last
year. Park looks forward with confidence and is well placed to
deliver another strong performance."
Enquiries:
Park Group plc Arden Partners Tavistock
plc
Chris Houghton Steve Douglas Jeremy Carey
Martin Stewart Benjamin Cryer Andrew Dunn
Tel: 0151 653 1700 Tel: 020 7614 Tel: 020 7920
5917 3150
INTERIM STATEMENT 2015
It is pleasing to report another strong performance from Park
Group. In the six months to 30 September 2015 the Company
maintained the momentum of the previous financial year achieving
considerable further success in booking orders for its corporate
and consumer businesses.
Financial highlights
Park is a seasonal business, which is traditionally loss making
in the first half of the year, however it remains a critically
important time for the Group, as the majority of orders are booked
during this period. Order activity in the first half of the year
was particularly encouraging and we completed the period with a
strong order book for Christmas Savings which, in the main, will be
delivered in the run up to the festive season.
The first half of the year delivered further growth in billings
in both the consumer and the corporate businesses. In the six
months to 30 September 2015 total billings rose by 23.1 per cent
compared to the equivalent period last year to GBP92.8m (H1 2014 -
GBP75.4m) while revenue increased by 23.2 per cent to GBP72.1m (H1
2014 - GBP58.5m).
The operating loss improved further, to GBP2.2m (H1 2014 - loss
GBP3.1m) while interest receipts grew by 21.2 per cent to GBP0.8m
(H1 2014 - GBP0.6m) reflecting higher cash balances. The pre-tax
loss reduced to GBP1.4m (H1 2014 - loss GBP2.4m). Cash balances
held in trust at 30 September were GBP167.0m (H1 2014 - GBP152.1m).
Total cash balances peaked at a record GBP206m (H1 2014 - GBP189m)
at the beginning of November.
Dividend
The Board has declared an interim dividend for the six months to
30 September 2015 of 0.85p per share (2014 - 0.80p). The dividend
will be paid on 6 April 2016 to shareholders on the register on 4
March 2016.
Operations
The corporate business, supplying over 7,000 organisations in a
UK voucher and gift card market, worth an estimated GBP5bn (source:
UK Gift Card & Voucher Association), delivered another strong
performance. The business incorporates a wide range of gift cards,
vouchers and e-codes in its tailor-made schemes which are designed
for customer organisations to recognise, incentivise and reward
staff for excellent performance. Corporate billings to third party
customers rose by 12.8 per cent to GBP66.0m (H1 2014 - GBP58.6m).
New products are performing well and made a significant
contribution to the 15.0 per cent growth in billings to the
incentive market and 45.0 per cent growth in billings to the
employee benefits segment. Park's exposure to the consumer credit
market reduced further, with billings 63.8 per cent lower than the
same period last year at GBP1.3m (H1 2014 - GBP3.7m). Excluding
consumer credit, total corporate billings grew by 16.9 per cent in
the six months compared with the same period last year.
Over the last few years we have been building our capabilities
within the business to support the continuing growth in our
customer base. This ongoing commitment to development has been
recognised with our corporate business, Love2shop Business
Services, being awarded the prestigious 'Company of the Year' award
at the Institute of Promotional Marketing COGS awards, which
recognise excellence and creativity within the industry.
In addition, Love2shop Holidays, our in-house travel business,
which redeems Park's cards and vouchers, as well as accepting
traditional payment methods for holidays, was awarded 'Independent
Travel Agent of the Year' at the 2015 Brit Travel Awards.
Park's prepaid card, flexecash(R), made further progress with
billings in the period rising by 24.1 per cent to GBP22.0m (H1 2014
- GBP17.7m). The card, which is offered alongside Park's
traditional paper voucher, is now accepted by 64 retail brands in
the UK (H1 2014 - 63 brands) while the voucher is accepted by 148
brands in the UK (H1 2014 - 144 brands) and 51 brands in Ireland
(H1 2014 - 44 brands).
Our online business continues to expand, with e-commerce
billings through our websites highstreetvouchers.com,
Love2shop.co.uk and Love2reward.co.uk achieving a 14.0 per cent
year on year growth to GBP9.8m (H1 2014 - GBP8.6m). Customers
appreciate the freedom and choice offered by these internet sites
which allow users to interact with Park in a manner and at a time
which suits the lifestyle of the individual client.
The consumer business, offering an extensive range of vouchers,
prepaid cards, hampers and other gift products, had an excellent
first half with billings rising by 59.0 per cent to GBP26.8m (H1
2014 - GBP16.8m). This increase reflects strong customer demand and
the early release of some orders. The months leading up to the
festive season are critical for the business as orders booked
earlier in the year are delivered. It is pleasing to report that
the order book for the year is around 7.0 per cent ahead of the
same period last year.
The consumer business also carries out storage and contract
packing for third parties and this operation generated billings of
GBP1.0m (H1 2014 - GBP0.6m) in the period under review.
The marketing campaign for the 2016 festive season, which
commenced in September and usually runs for five months, has
started well and the early order indications are very
encouraging.
Outlook
The second half of the financial year has started well as we
enter the key delivery period, with orders for Christmas 2015 well
ahead of the same period last year. Park looks forward with
confidence and is well placed to deliver another strong
performance.
Peter Johnson
Non-executive chairman
1 December 2015
PARK GROUP PLC
UNAUDITED CONSOLIDATED INCOME STATEMENT
FOR THE HALF YEAR TO 30 SEPTEMBER 2015
Year
Half Year Half Year to
Notes to 30.09.15 to 30.09.14 31.03.15
GBP'000 GBP'000 GBP'000
Billings 92,795 75,394 372,887
------------- ------------- ----------
Revenue 72,083 58,501 293,329
Cost of sales (66,972) (54,896) (265,966)
------------- ------------- ----------
Gross profit 5,111 3,605 27,363
Distribution costs (485) (384) (2,761)
Administrative expenses (6,796) (6,274) (14,914)
------------- ------------- ----------
Operating (loss)/profit (2,170) (3,053) 9,688
Finance income 766 632 1,246
Finance costs - (1) (1)
------------- ------------- ----------
(Loss)/profit before
taxation (1,404) (2,422) 10,933
Taxation 2 281 509 (2,434)
------------- ------------- ----------
(Loss)/profit for the
period attributable to
equity holders of the
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parent (1,123) (1,913) 8,499
------------- ------------- ----------
(Loss)/earnings per share 3
- basic (p) (0.62) (1.05) 4.66
- diluted (p) (0.62) (1.05) 4.60
All activities derive from continuing operations.
PARK GROUP PLC
UNAUDITED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE HALF YEAR TO 30 SEPTEMBER 2015
Year
Half Year Half Year to
to 30.09.15 to 30.09.14 31.03.15
GBP'000 GBP'000 GBP'000
(Loss)/profit for the period (1,123) (1,913) 8,499
Other comprehensive income
Items that will not be reclassified
to profit or loss:
Remeasurement of defined benefit
pension schemes - - (731)
Deferred tax on defined benefit
pension schemes - - 146
- - (585)
Items that may be reclassified
subsequently to profit or loss:
Foreign exchange translation
differences (18) 44 17
Other comprehensive income for
the period net of tax (18) 44 (568)
------------ ------------ ---------
Total comprehensive income for
the period attributable to equity
holders of the parent (1,141) (1,869) 7,931
------------ ------------ ---------
PARK GROUP PLC
UNAUDITED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 SEPTEMBER 2015
30.09.15 30.09.14 31.03.15
GBP'000 GBP'000 GBP'000
Assets
Non-current assets
Goodwill 1,320 1,320 1,320
Other intangible assets 2,928 3,500 3,168
Investments - 8 8
Investment property - 190 -
Property, plant and equipment 8,108 8,404 8,143
Retirement benefit asset 1,297 - 1,293
13,653 13,422 13,932
---------- ---------- ----------
Current assets
Inventories 11,888 13,815 3,186
Trade and other receivables 9,614 10,530 11,212
Tax receivable - 311 -
Other financial assets - - 500
Monies held in trust 167,035 152,062 65,728
Cash and cash equivalents 11,865 5,477 26,333
Assets held for sale - - 39
---------- ---------- ----------
200,402 182,195 106,998
---------- ---------- ----------
Total assets 214,055 195,617 120,930
---------- ---------- ----------
Liabilities
Current liabilities
Trade and other payables (163,698) (158,883) (73,569)
Tax payable (394) - (1,435)
Provisions (52,703) (45,635) (43,186)
---------- ---------- ----------
(216,795) (204,518) (118,190)
---------- ---------- ----------
Non-current liabilities
Deferred tax liability (273) (294) (273)
Retirement benefit obligation (2,339) (912) (2,634)
---------- ---------- ----------
(2,612) (1,206) (2,907)
---------- ---------- ----------
Total liabilities (219,407) (205,724) (121,097)
---------- ---------- ----------
Net liabilities (5,352) (10,107) (167)
---------- ---------- ----------
Equity attributable to equity holders of the parent
Share capital 3,674 3,650 3,650
Share premium 6,132 6,132 6,132
Retained earnings (14,847) (19,578) (9,638)
Other reserves (311) (311) (311)
---------- ---------- ----------
Total equity (5,352) (10,107) (167)
---------- ---------- ----------
PARK GROUP PLC
UNAUDITED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Total Non-
Share Share Other Retained parent controlling Total
capital premium reserves earnings equity interest equity
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Balance at 1 April
2015 3,650 6,132 (311) (9,638) (167) - (167)
Total comprehensive
income for the
period
Loss - - - (1,123) (1,123) - (1,123)
Other comprehensive
income
Foreign exchange
translation adjustments - - - (18) (18) - (18)
--------- --------- ----------- ----------- ---------- ------------- ----------
Total other comprehensive
income - - - (18) (18) - (18)
--------- --------- ----------- ----------- ---------- ------------- ----------
Total comprehensive
income for the
period - - - (1,141) (1,141) - (1,141)
--------- --------- ----------- ----------- ---------- ------------- ----------
Transactions with
owners, recorded
directly in equity
Equity settled
share-based payment
transactions - - - 336 336 - 336
LTIP shares awarded 24 - - (24) - - -
Dividends - - - (4,380) (4,380) - (4,380)
--------- --------- ----------- ----------- ---------- ------------- ----------
Total contributions
by and distribution
to owners 24 - - (4,068) (4,044) - (4,044)
--------- --------- ----------- ----------- ---------- ------------- ----------
Balance at 30
September 2015 3,674 6,132 (311) (14,847) (5,352) - (5,352)
--------- --------- ----------- ----------- ---------- ------------- ----------
Balance at 1 April
2014 3,650 6,132 - (13,606) (3,824) (311) (4,135)
Total comprehensive
income for the
period
Loss - - - (1,913) (1,913) - (1,913)
Other comprehensive
income
Foreign exchange
translation adjustments - - - 44 44 - 44
--------- --------- ----------- ----------- ---------- ------------- ----------
Total other comprehensive
income - - - 44 44 - 44
--------- --------- ----------- ----------- ---------- ------------- ----------
Total comprehensive
income for the
period - - - (1,869) (1,869) - (1,869)
--------- --------- ----------- ----------- ---------- ------------- ----------
Transactions with
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owners, recorded
directly in equity
Equity settled
share-based payment
transactions - - - 95 95 - 95
Purchase of non-controlling
interest - - (311) - (311) 311 -
Dividends - - - (4,198) (4,198) - (4,198)
--------- --------- ----------- ----------- ---------- ------------- ----------
Total contributions
by and distribution
to owners - - (311) (4,103) (4,414) 311 (4,103)
--------- --------- ----------- ----------- ---------- ------------- ----------
Balance at 30
September 2014 3,650 6,132 (311) (19,578) (10,107) - (10,107)
--------- --------- ----------- ----------- ---------- ------------- ----------
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)
--------- --------- ----------- ----------- ---------- ------------- ----------
PARK GROUP PLC
UNAUDITED CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE HALF YEAR TO 30 SEPTEMBER 2015
Half
Half Year Year Year to
Notes to 30.09.15 to 30.09.14 31.03.15
GBP'000 GBP'000 GBP'000
Cash flows from operating
activities
Cash (used in)/generated
from operations 4 (6,879) (4,285) 14,106
Interest received 516 602 1,177
Interest paid - (1) (1)
Tax paid (760) (1,061) (2,132)
------------- ------------- ----------
Net cash (used in)/generated
from operating activities (7,123) (4,745) 13,150
------------- ------------- ----------
Cash flows from investing
activities
Sale of investment property - - 41
Proceeds from sale of
assets previously held
for sale 42 - -
Proceeds from sale of
investments 9 - -
Purchase of intangible
assets (127) (117) (212)
Purchase of property,
plant and equipment (289) (305) (385)
Net cash used in investing
activities (365) (422) (556)
------------- ------------- ----------
Cash flows from financing
activities
Dividends paid to shareholders (3,885) (4,198) (4,198)
------------- ------------- ----------
Net cash used in financing
activities (3,885) (4,198) (4,198)
------------- ------------- ----------
Net (decrease)/increase
in cash and cash equivalents (11,373) (9,365) 8,396
------------- ------------- ----------
Cash and cash equivalents
at beginning of period 23,238 14,842 14,842
------------- ------------- ----------
Cash and cash equivalents
at end of period 11,865 5,477 23,238
------------- ------------- ----------
Cash and cash equivalents
comprise:
Cash 11,865 5,477 26,333
Bank overdrafts - - (3,095)
------------- ------------- ----------
11,865 5,477 23,238
------------- ------------- ----------
PARK GROUP PLC
UNAUDITED SEGMENTAL REPORTING
FOR THE HALF YEAR TO 30 SEPTEMBER 2015
Year
Half Year Half Year to
to 30.09.15 to 30.09.14 31.03.15
GBP'000 GBP'000 GBP'000
Billings
Consumer 26,753 16,822 196,796
Corporate 66,042 58,572 176,091
------------- ------------- ----------
External billings 92,795 75,394 372,887
------------- ------------- ----------
Consumer - - -
Corporate 18,501 12,039 135,667
Elimination (18,501) (12,039) (135,667)
------------- ------------- ----------
Inter-segment billings - - -
------------- ------------- ----------
Consumer 26,753 16,822 196,796
Corporate 84,543 70,611 311,758
Elimination (18,501) (12,039) (135,667)
------------- ------------- ----------
Total billings 92,795 75,394 372,887
------------- ------------- ----------
Revenue
Consumer 22,379 14,096 164,682
Corporate 49,704 44,405 128,647
------------- ------------- ----------
External revenue 72,083 58,501 293,329
------------- ------------- ----------
Consumer - - -
Corporate 18,501 12,039 135,667
Elimination (18,501) (12,039) (135,667)
------------- ------------- ----------
Inter-segment revenue - - -
------------- ------------- ----------
Consumer 22,379 14,096 164,682
Corporate 68,205 56,444 264,314
Elimination (18,501) (12,039) (135,667)
------------- ------------- ----------
Total revenue 72,083 58,501 293,329
------------- ------------- ----------
Results
Consumer (1,894) (2,454) 5,933
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