TIDMPKG
RNS Number : 0627B
Park Group PLC
14 June 2016
NEWS RELEASE
PARK GROUP PLC
("Park", "Park Group" or "the Company")
14 June 2016
Preliminary Results for the Year Ended 31 March 2016
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
-- Operating profit increased by 7.3 per cent
to GBP10.4m (2015 - GBP9.7m)
-- Profit before tax increased 8.5 per cent to
GBP11.9m (2015 - GBP10.9m)
-- Billings increased 3.3 per cent to GBP385.0m
(2015 - GBP372.9m)
-- Earnings per share increased 13.3 per cent
to 5.28p
-- Proposed raising of final dividend by 18.8
per cent to 1.90p per share (2015 - 1.60p),
making a total dividend for the year of 2.75p
per share (2015 - 2.40p per share)
-- Total cash balances peaked at GBP206m (2015
- GBP189m). Year end cash balance was GBP28.8m
(2015 - GBP23.2m) with a further GBP75.2m (2015
- GBP65.7m) of monies held in trust
Operational highlights
-- Maintained the growth of the strong first half,
delivering another impressive trading performance
-- Corporate business made sound progress, increasing
billings by approximately GBP14m to GBP170m,
excluding sales to the consumer credit sector
-- Consumer business delivered another year of
growth, with billings increasing 7.5 per cent
to GBP212m; the order book for Christmas 2016
is ahead of last year
-- Ongoing investment and development in e-commerce
- the majority of orders are now received via
a smartphone or tablet
-- Relationship with MasterCard, initiated last
year, has made excellent progress, as has our
innovative 'Combi' offering to the consumer
market
-- Everyday Benefits, our employee voluntary benefit
product, achieved another strong performance,
with billings up more than 36 per cent compared
with the previous year
-- Love2shop Business Services and Love2shop Holidays
divisions both won industry awards, recognising
excellence and creativity
Laura Carstensen, Chairman, commented: "Early indications for
the current year are encouraging. Park's financial position remains
solid, with cash balances well ahead of the equivalent period last
year. We have a consistent and sustainable strategy executed by
experienced, highly capable management and a sound business that
meets our customers' needs.
"We look forward with confidence and remain focussed on
delivering yet another year of progress."
Chris Houghton, Chief Executive Officer, added: "We continue to
see the benefits of investment in our systems and products, while
our customers on both the consumer and corporate sides of our
business show a sustained and growing enthusiasm for our broad
range of products and programmes.
"Park has evolved significantly since its beginnings. We are now
utilising all available technologies in our business, enabling us
to make rapid progress in our specialist markets. We have developed
the capability to anticipate and dynamically respond to a rapidly
changing market place. This will drive future growth as we continue
to move forward."
Park Group plc Arden Partners Tavistock Communications
plc
Chris Houghton Steve Douglas Jeremy Carey
Martin Stewart Benjamin Cryer Andrew Dunn
Tel: 0151 653 Tel: 020 7614 Tel: 020 7920
1700 5920 3150
Chairman's Statement
In my first statement as Chairman, I am pleased to report that
Park has maintained its growth record and delivered another
impressive trading performance for the year to 31 March 2016.
Our business
Park is a strong, long established and forward-looking business
with leading market positions.
The rapid and relatively recent advances in information
technology (IT) and mobile smart devices have changed the way
customers want to interact with us and use our products. We are
committed to keeping ahead of these trends. During the previous few
years, our leadership team has revolutionised the business and the
services we provide, to maximise the benefits we bring to our
customers and the returns to our shareholders.
The Group's principal operations continue to focus on consumer
prepayments and corporate reward and incentive programmes. In these
areas, year-upon-year, Park has achieved a very successful trading
record by consistently applying its strategy and utilising
technological change to become a substantial e-commerce and
financial services business.
Financial performance
Profit before taxation for the year to 31 March 2016 advanced by
8.5 per cent to GBP11.9m (2015 - GBP10.9m) while operating profit
increased to GBP10.4m (2015 - GBP9.7m). Finance income was higher
at GBP1.5m (2015 - GBP1.2m); cash balances continue to increase and
this has enabled the Company to place funds for longer maturity to
deliver better returns. The advance in cash balances to GBP104m at
the year end (2015 - GBP89m) provides more than sufficient
liquidity for planned increases in investment. In addition it has
provided us with sufficient working capital to support the rapid
growth of the e-money business through the sale of prepaid cards,
which are required to be cash-backed. Money market interest rates
remain low and although higher returns may be available from
certain products, investing in them would be incompatible with the
Company's prudent approach to cash management, driven by our core
commitment to consumer protection.
Total billings rose by 3.3 per cent to GBP385.0m (2015 -
GBP372.9m) while revenue increased to GBP302.5m (2015 - GBP293.3m).
As highlighted in previous reports, we consider billings to be a
more appropriate measure of the performance of the Company than
revenue.
Dividend
The board is recommending raising the final dividend by 18.8 per
cent to 1.90p per share (2015 - 1.60p) making a total dividend for
the year of 2.75p per share (2015 - 2.40p). This uplift reflects
the growth of the Company's cash resources and the robust trading
performance. Shareholder approval will be sought at the Annual
General Meeting (AGM) to be held on 22 September 2016 to pay the
final dividend on 3 October 2016 to shareholders on the register on
26 August 2016.
Operating performance
Both our corporate and consumer divisions made further good
progress during the year against the backdrop of a broadly stable
economic environment in the UK.
The corporate business provides innovative, cost-effective,
tailored products to around 28,000 organisations, which use Park's
products to incentivise employee performance or reward the loyalty
of their customers.
Park delivered significant increases in billings in most areas
within the corporate business, but overall could not fully offset
the significant reduction in demand from the consumer credit
sector, which had previously been an important driver of demand for
these products. Billings to the consumer credit sector were
GBP3.9m, compared with GBP20.4m in the previous year. Although our
involvement with this sector has reduced significantly over recent
years, it remains a market in which we have strong capabilities
that remain attractive to customers.
The consumer business continued to grow strongly with billings
and profit well ahead of the previous year. The business supplies
traditional prepayment products that enable customers to prepare
for the festive season in a safe and controlled way, yet the
products provided and the manner in which it serves its customers
are constantly evolving as technology progresses.
Over 429,000 customers currently enjoy the Company's consumer
budgeting schemes. Park constantly seeks to enhance existing
products and where necessary, develop new ones to serve its
customers' needs. Recently introduced products which proved
particularly popular during the year are: 'Combi', a card
combination that gives customers access to major retailers such as
Asda and Primark, that otherwise would not have been available to
them; and, our 'Anywhere' card. 'Anywhere' is a prepayment card
which can be used at outlets, whether traditional retail or online,
that accept MasterCard, not just retail groups previously linked to
our Love2shop brand.
Retirement of our founding Chairman
Peter Johnson founded the business in 1966 and led it through
four decades, until the appointment of Chris Houghton as Group
Managing Director in 2004. Chris, who became Chief Executive
Officer of Park in 2012, and his team have maintained Peter's
entrepreneurial spirit, transforming the business to create a
modern and specialist company, using the latest in technology to
respond quickly to the changing needs and preferences of our
customers.
Following his long and successful career, Peter retired as
Non-Executive Chairman of Park on 3 June 2016. I am delighted to
have been appointed as his successor, having worked with him in my
capacity as a non-executive director since I joined the board in
September 2013. Over recent years, his experience and encouragement
have been of great benefit to our progress.
Everyone associated with Park is grateful to Peter for his hard
work and vision and we wish him a long, healthy and enjoyable
retirement.
People
Our success is delivered by the talent and commitment of our
people and we are committed to ensuring that Park remains a great
place to work. Park's employees are motivated by a desire to be the
best in their field by delivering excellence to customers and
consequently, value to our shareholders. I would like to thank
everyone at Park for their enthusiasm and dedication to our
collective achievements and look forward to future successes
together.
Outlook
Early indications for the current year are encouraging. The
consumer order book continues to grow year-on-year and we
anticipate that the success of our corporate business will continue
going forward as we develop and launch new products into this
market.
Park's financial position remains solid, with cash balances well
ahead of the equivalent period last year. We have a consistent and
sustainable strategy executed by experienced, highly capable
management and a sound business that meets our customers'
needs.
We look forward with confidence and remain focussed on
delivering yet another year of progress.
Laura Carstensen
Chairman
14 June 2016
Chief Executive's Review
Introduction
The financial year to 31 March 2016, has been another pleasing
period of advancement for Park Group. We have built on previous
successes and extended our already large customer base through
excellent service and product development.
We serve our markets through the provision of a broad range of
products including paper vouchers, prepaid cards and e-codes to
give customers access to thousands of retail outlets and online
across the UK, Ireland and continental Europe.
The majority of our business is in the UK where economic
stability and consumer confidence have improved over recent years.
This environment, together with our successful management strategy
and commitment to our customers, has generated a steady rise in
billings, which have increased close to 30 per cent since 2011,
while profit before tax and other operating income has advanced
almost 70 per cent. This performance reflects the benefits of our
investment in IT infrastructure, digital platforms and new product
development.
The Company's balance sheet is positive and our cash position
remains strong with sufficient funds available to comfortably
finance working capital and further investment. Total cash balances
at the year end, including monies held in trust, reached GBP104m
(2015 - GBP89m).
Strategic Overview
Adherence to Park's well-established strategy for growth remains
the bedrock of the business and over time, additional strands were
introduced to this ethos as the organisation has developed and
expanded. In my review last year the key aims of our consistent
strategy were defined as:
-- to enhance our retailer proposition;
-- to grow our multichannel offering;
-- to expand the customer base; and,
-- to develop and exploit our infrastructure.
These core goals remain unchanged and I am pleased to report
that the business has made further impressive progress in each
area.
The board stays abreast of acquisition opportunities, as they
arise. Potential purchases are carefully considered and assessed
against our strict market, financial and strategic objectives. Park
is well positioned to undertake acquisitions but we will only do so
when a good fit has been identified, which can add value to our
business and its prospects.
Our evolution
The transformation of Park is highlighted by the change in the
business mix over the years and the achievement of developmental
milestones:
-- The original Park business was associated mainly
with Christmas hampers. Today, this accounts
for less than 2 per cent of total revenue;
-- The introduction, some 30 years ago, of paper
vouchers, which could be redeemed at major
retailers, was a major innovation and an important
step in our transition;
-- A further significant product and technical
development was the introduction, in 2010,
of our highly innovative flexecash(R) prepaid
card platform, which connects directly with
retailer's tills. This has enabled the Company
to enter the regulated prepaid card market,
quickly becoming a major presence; and,
-- The recent establishment of our relationship
with MasterCard, has allowed Park to offer
broader-use products such as the 'Anywhere'
and 'Online' cards.
Today, Park is a progressive, specialist and successful
business, able to anticipate and dynamically respond to a changing
market place.
Our prepaid card system, flexecash(R), has been extremely
successful. It was launched after three years of in-house
development and testing and this capability has given Park access
to trading areas which previously had been closed to the
Company.
Since its launch, flexecash(R) cards have had over GBP418m of
value loaded, with 66 brands accepting the card through 13,000 UK
outlets. The card is available alongside our Love2shop voucher,
which is supported by 151 brands at 20,000 outlets.
Our relationship with MasterCard, initiated last year, has
signalled further excellent progress, allowing us to offer
particularly useful products to our customers such as the
'Anywhere' and 'Online' prepaid cards. The customer pays a small
premium for the 'Anywhere' card, however, as the name suggests, the
card offers the freedom of choice to spend the embedded value at
any outlet that accepts MasterCard, not just those where a
relationship with Love2shop exists.
Detailed analysis indicates that approximately half our customer
base does not own a credit card, so developments such as the
relationship with MasterCard gives them access to many new outlets.
Customers of our consumer business contribute weekly to purchase
prepaid cards and vouchers in preparation for the festive season.
The cards and vouchers are then despatched in October and November,
giving customers the additional opportunity to take advantage of
any pre-Christmas sales.
The 'Online' card can be spent online with any retailer that
accepts the card.
The number of customers using direct debits in the consumer
sector continues to increase. This benefits Park as it facilitates
customers' annual renewals and is efficient, maintaining the
relationship with minimal effort from the customer or intervention
by Park. It also delivers the business a reduction in cash
collection costs as it carries a lower transaction fee than more
traditional methods such as paying at the bank or Post Office.
Digital trends and the internet
The changing and fast developing trends in computer and smart
device usage are reflected in the manner in which customers
interact with Park. The majority of orders now come via a
smartphone or tablet, as the numbers using desktop computers and
other, more traditional means, continue to fall. Park's websites
and applications (apps) undergo a process of continuous development
and improvement and are tailored to be informative and easy-to-use
on a range of the latest devices.
Customising sites for ease of use on smartphones and tablets is
vital and our websites have been rebuilt to be mobile friendly and
responsive. We are giving customers the platforms they want and
have now introduced standalone apps for Android and Apple users.
These apps give Park a direct relationship with customers and
therefore responses can be personalised by harnessing individual
preferences.
Social media, particularly Facebook, provides a crucial link
with users and also gives the Company an insight into customer
opinions and issues. The number of Facebook "likes" is currently
80,000, up from last year's 72,000. Social media is a very
effective customer service channel and an early indicator of
emerging issues. It often also allows our customers to answer the
queries of others, minimising Park's involvement. Social media also
plays an important role in helping to increase orders, as it is
used to promote products, post competitions and encourage
recommendations to friends and family.
Park is constantly interacting with its customers and monitoring
feedback. We regularly commission third party research to keep
fully informed regarding customer profiles, requirements and
issues. The careful and targeted use of this information allows us
to tailor product development and services to match customer
expectations. SMS texting is a very effective and inexpensive
communication tool and the Company sends over one million messages
annually to maintain contact and inform its customers.
The information produced by our market and customer research,
together with analysing socioeconomic trends, drives our consumer
marketing programmes, including our advertising strategy. A six
month campaign usually commences in the September of any given
year, targeting the festive season in the following year. The
advertising programme is tightly controlled and targeted to
maximise the cost benefit and comprises a combination of direct
response television, search marketing and effective use of the
internet. Our research tells us that printed media and radio no
longer offer sufficient reach for us. As a campaign progresses,
analysis of customer reaction and order patterns allow us to make
adjustments to fine-tune the programme to maximise its effect.
Our corporate business
The corporate business offers an extensive portfolio of
tailor-made products and programmes. Customer requirements cover
many different areas including, employee benefits, performance
recognition awards, motivation programmes and customer loyalty
rewards. Park is one of the largest providers of such programmes in
the UK, and has been offering market-leading reward and incentive
products for well over 20 years. The market we serve has been
estimated by the independent UK Gift Card & Voucher Association
to be worth in the region of GBP5bn in 2015, and increased by
approximately 6 per cent over the previous year.
During the year
The corporate business made sound progress, increasing billings
by approximately GBP14m, excluding sales to the consumer credit
sector. The growth in sales to the incentive and reward market was
not sufficient to offset the reduction in demand from the consumer
credit sector entirely and consequently total billings were lower
at GBP173.5m (2015 - GBP176.1m). Operating profit was GBP6.0m (2015
- GBP6.5m).
We have reported previously how exposure to the credit sector
has influenced the overall results of our corporate business. We
have sought to mitigate this impact by building sales in other
areas over recent years. Sales to the consumer credit sector were
less than GBP4m this year, a reduction of over GBP16m on the
previous 12 months. We are confident that consumer credit business
will not influence Park's future trading, as it now accounts for
only one per cent of total billings.
Client retention is a significant measure of our performance as
it reflects across all aspects of the business. In the year under
review, the overall customer retention level was an impressive 83
per cent, unchanged from that of the previous twelve months. Our
sales force is very active in seeking new business while
maintaining strong relations with existing customers.
Our e-commerce operations, including highstreetvouchers.com and
love2shop.co.uk, continued to advance. These platforms offer
customers the convenience and flexibility they require, whilst
minimising ongoing involvement from us. Customers expect Park's
systems and processes to be available and accessible online at any
time so that they can self-manage all aspects of the order
process.
Everyday Benefits, our employee voluntary benefit product,
delivered another strong performance with billings up more than 36
per cent compared with the previous year. This product enables
employers to give their staff a Love2shop card, usually with value
already loaded, which can then be used at over 13,000 retail
outlets across the UK. A new development allows the user to load
additional value online or via a smart device. This feature is
particularly attractive to users who, for example, may be in a shop
wishing to purchase an item; the convenience of being able to load
value instantly and at a discount enables them to complete the
transaction quickly and efficiently.
Our performance in the corporate space during the year was
acknowledged by the industry. Our Love2shop Business Services
division received the prestigious 'Company of the Year' award from
the Institute of Promotional Marketing, which recognises excellence
and creativity.
Love2shop Holidays, Park's full service travel agency, provides
another attractive and convenient outlet for redeeming value
embedded in Love2shop prepaid cards and vouchers. This operation
has delivered steady growth since it was introduced in 2004 and
commission on holiday bookings showed a 7 per cent rise
year-on-year, with the number of bookings up by 4 per cent.
Love2shop Holidays also received a pleasing endorsement during
the period, as it was awarded 'Independent Travel Agent of the
Year' at the 2015 Brit Travel Awards.
Product development
Last year, we completed development and launched 'Engage', a
new, completely digital platform for the corporate incentive and
reward market. This innovative and cost-effective modular platform
allows corporate users to create and control exclusively web and
smart device based programmes for their customers or staff. The
system can also incorporate any existing schemes each business may
be running and provides real-time statistics and information on the
uptake and success of a programme.
A further important innovation has been the development of our
'Evolve' product. 'Evolve' was launched in early June 2016 and is
an online fully responsive digital reward medium that provides
instant and branded gratification to customers and employees alike.
Based on the development of digital flexecodes, the system delivers
a broad range of choice, offered cost effectively, and if required
in a fully branded experience, to large numbers of people.
Our consumer business
Park has been offering the consumer ways to safely budget for
Christmas ever since the business was founded, although today's
offering is vastly different from our beginnings, in both content
and delivery.
The only remaining link with the past is the supply of hampers,
which now account for just 2 per cent of total revenue. However,
the concept of making weekly contributions over a 45 week period,
to ensure that funds are available to spend ahead of the festive
season, is still attractive to our customers. The steady prepayment
for products over the contribution period allows customers to
prepare for the season in a stress-free and confident manner. When
the period ends, customers receive their products in whichever form
they select. Park's vouchers or prepaid cards, for redemption at
more than 20,000 retail outlets, are the preferred option for the
majority of customers, while others select hampers or gifts chosen
from our extensive catalogue.
Innovation is essential as technology and lifestyle changes
drive transformation in the shopping habits of the nation. While
the majority of customers spend their vouchers or prepaid cards at
retail outlets, an increasing number choose to shop online. The
Love2shop Online Gift Card is perfect for those who prefer to order
online, giving access to participating retailers' entire range
including many special offers only available on their websites.
During the year
The consumer business delivered another year of good growth with
billings rising 7.5 per cent to GBP211.5m (2015 - GBP196.8m) and
operating profit increasing by 15.0 per cent to GBP6.8m (2015 -
GBP5.9m). Customer numbers increased to 429,000 (2015 - 424,000)
while customer accounts rose during the year to 158,000 (2015 -
145,000). More than 64 per cent of new accounts came through our
websites, compared with 60 per cent in the previous year. Product
distribution was particularly efficient this year and contributed
to the high retention rates. The average order size was up 5.6 per
cent on the previous year, reaching GBP489 (2015 - GBP463).
The annual marketing programme usually ends in February with
most orders placed by May, which gives us good visibility on the
likely outcome for the coming year. The campaign for the 2016
festive season has now ended and orders are approximately 4 per
cent ahead of the same point last year. While a limited number of
cancellations are typical, indications are that this will be
another year of progress for the business.
An encouraging feature of the year has been the popularity of
the 'Combi' offer. This innovative product gives customers two
cards; one is our market-leading Love2shop card and the other is
for a national retailer, which previously had not been available to
our customers. Last year, the scheme was launched with Asda and
Morrisons and this year we added Primark and Sainsbury's. Amazon
and Tesco have joined for the 2016 season and discussions are
ongoing with other major retailers. 'Combi' billings for the year
were well ahead of the previous year and are expected to grow
further.
Park's relationship with MasterCard, giving users of our
'Anywhere' prepayment card access to outlets accepting MasterCard,
is another example of our commitment to innovation. Our research
identified that customers were prepared to pay a small premium for
the opportunity to shop at outlets that accepted MasterCard and
this has been demonstrated by the very large and growing take up of
the 'Anywhere' card during the reporting period.
Our business in Ireland, traditionally representing a
comparatively small source of revenue, had a challenging year
following a rationalisation of the product range with orders
reducing to EUR4.2m (2015 - EUR4.6m) However, it was encouraging to
note that sales of the Love2shop voucher increased by more than 20
per cent compared with the previous year.
The Irish operation affords Park the strategic opportunity to
transact business in the Euro currency and while we continue to
cautiously examine opportunities to exploit this capability in a
wider European context, in the near-to-medium term, the management
team is firmly focused and committed to maintaining our growth and
success in the UK.
Product development
Our consumer customers regularly enquired as to the availability
of a Park mobile app, to make staying in touch with us and learning
of our latest products even easier. During the last year we have
developed and built an app to service their needs, which is
currently undergoing extensive testing. A soft launch to a small
number of users is planned for July of this year and we are working
toward a full launch in the first quarter of the 2017 calendar
year. The app will be beneficial to our customers and also to Park,
as the decision to order will be made simpler and more convenient
for the consumer, while setting up an account and processing
payments will become quicker and easier.
Following launch, we plan to constantly look at ways to update
and improve our consumer app so that it brings even more
functionality, convenience and choice to our customers in future,
developing alongside the customers' requirements.
Summary
It has been another good year for Park as we deliver against all
our strategic goals. We continue to see the benefits of investment
in our systems and products, while our customers on both the
consumer and corporate sides of our business show a sustained and
growing enthusiasm for our broad range of products and
programmes.
Park has evolved significantly since its beginnings. We have
shown agility to stay ahead of trends in customer needs and have
embraced the changes which the internet, digital communication and
social media have brought to our markets. Our offering has been
developed steadily and sensibly and we remain committed to ongoing
innovation to bring the best for our customers; in doing so, we
safeguard the future growth and success of our business and
generate increasing returns for our loyal shareholders.
We will continue to build on our heritage, sustain our momentum
and look forward to the future with confidence.
Chris Houghton
Chief Executive Officer
14 June 2016
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 and all online sales.
All other segments comprise central costs and property
costs.
Billings have increased when compared to the prior year by 3.3
per cent to GBP385.0m, with revenue increasing on the same basis by
3.1 per cent to GBP302.5m. 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:
2016 2015 Change
GBP'000 GBP'000 GBP'000
-------------------- --------- --------- ---------
Consumer 6,823 5,933 890
Corporate 6,013 6,465 (452)
All other segments (2,436) (2,710) 274
-------------------- --------- --------- ---------
Operating profit 10,400 9,688 712
-------------------- --------- --------- ---------
Operating profit for the year ended 31 March 2016 has increased
by GBP0.7m to GBP10.4m.
In the consumer business, customer billings have increased by
7.5 per cent to GBP211.5m. Revenue has also increased by 5.1 per
cent to GBP173.0m. Operating profit at GBP6.8m has increased by
GBP0.9m from that achieved in the prior year reflecting the
improved level of billings in the year. The increase in billings of
GBP14.7m primarily reflects the higher level of customer prepayment
orders fulfilled in the UK for Christmas 2015 at GBP202.5m
(Christmas 2014 - GBP189.3m). Billings in respect of flexecash(R)
cards totalled GBP38.9m (2015 - GBP32.5m).
In the corporate business, customer billings have decreased by
GBP2.6m (1.5 per cent) in the year to GBP173.5m. Revenue has
increased by 0.7 per cent to GBP129.5m. Growth in billings in the
incentive sector was again strong, up GBP5.6m (5.2 per cent) in the
year and in the employee benefits sector up GBP4.5m (44.5 per cent)
in the year. In contrast, billings in the credit sector were
GBP16.5m lower than last year. The decline in operating profit of
GBP0.5m to GBP6.0m reflects a small decline in margins arising from
a change in the mix of products sold and an increase in
administration costs associated with a growth in marketing and
systems based costs. Billings in respect of flexecash(R) cards
totalled GBP51.7m (2015 - GBP54.0m).
The decreased costs in other segments of GBP0.3m from the prior
year arises from a reduction in management incentive costs recorded
in the income statement.
Finance income
Finance income increased to GBP1.5m from GBP1.2m reflecting the
increase in average total cash held, including that held in trust
from almost GBP121m to GBP140m. This increase was assisted by the
maturing of deposits in the first three months of the year at
higher rates of interest than that currently being achieved.
Taxation
The effective tax rate for the year was 18.3 per cent (2015 -
22.3 per cent) of profit before tax. This rate is lower than the
standard rate of corporation tax due to the release of an
overprovision made in respect of prior year's trading.
Earnings per share
Basic earnings per share (eps) increased to 5.28p from
4.66p.
Dividends
The board has recommended a final dividend of 1.90p per share.
An interim dividend of 0.85p per share was paid on 6 April 2016.
Subject to approval of the final dividend at the AGM, the total
dividend for 2016 will be 2.75p per share representing an increase
of 14.6 per cent over the prior year.
Cash flows
At the end of March 2016 GBP32.7m (2015 - GBP26.3m) of cash and
cash equivalents was held by the group. This would have been GBP2m
higher as monies held within the Park Prepayments Trustee Company
Ltd in respect of the Christmas 2015 season was not received by the
group until 1 April 2016. A further GBP0.5m (2015 - GBP0.5m) was
held as deposits with a maturity period of greater than three
months but less than 12 months. In addition, GBP56.1m (2015 -
GBP50.9m) 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 2016, the
group held GBP19.1m (2015 - GBP14.9m) 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 GBP104.5m from GBP89.5m as at 31 March
2015. These total balances peaked at just over GBP206m in the year,
representing an increase of over GBP17m from last year. This was
due to the increased volumes of cash receipts associated with
higher level of cash receipts into the Park Prepayments Protection
Trust (PPPT) in respect of the consumer business.
Provisions
At the year end, provisions had increased from GBP43.2m to
GBP44.8m. This was mainly due to a decrease in the provision for
unspent vouchers of GBP0.8m, accompanied by an increase in the
amounts provided in respect of flexecash(R) cards of GBP2.4m. The
value of unspent vouchers included in the provision, arises
primarily from sales in the corporate business. Included within
provisions is an amount of GBP20,000 (2015 - GBP80,000) 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 GBP8.8m (2015 - GBP7.4m).
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 2016 has decreased to GBP0.3m (2015
- GBP1.3m).
The group has recognised a cost of GBP146,000 (2015 - GBP42,000)
in the income statement, including an amount of GBP109,000 in
respect of past service costs in relation to the augmentation of
pensions in respect of equalisation agreed with the trustees in
2014. In addition the group has recognised re-measurements in the
statement of comprehensive income (SOCI) of a gain of GBP0.4m (2015
- loss of GBP0.6m) net of tax.
In the year ended 31 March 2016, contributions by the group to
the schemes totalled GBP0.7m (2015 - 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
14 June 2016
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 current
to service its liabilities, it has access to
debts as they funds for working capital from
fall due and to the PPPT for a defined period
have access to in the year although the Group
finance where has not used this facility in
this is necessary. either of the last two years.
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 with
on deposit and and spread between high quality
as such is exposed counterparties and where appropriate
to interest rate any exchange rate exposure is
risk, counterparty managed to minimise any potential
risk and exchange 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 contributions accrual related to service.
to cover any funding Funding rates are in accordance
shortfalls. with the actuaries' recommendations.
--------------- ----------------------------- ----------------------------------------
Financial The business model The Group has a regulatory team
services may be compromised that monitors and enforces compliance
and other by changes in with existing regulations and
market existing regulation keeps the Group up to date with
regulation or by the introduction impending regulation. The Group
of new regulation. shares the objectives of Government
Possible new regulation in treating customers fairly
could include and in the protection of customer
a requirement prepayments. The Group operates
to ring fence a number of trusts to safeguard
funds for vouchers funds held on behalf of customers.
sold to consumers. In 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 of trading history and financial
default by credit status, a prudent approach is
customers due adopted towards credit control.
to reduced economic Credit insurance is used in
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
systems retail partners preparation for catastrophic
or other suppliers, events and for the existence
resulting in a of counterfeit vouchers or cards.
failure to maintain Our focus is on the elimination
services that of any single point of failure
generate revenue. in our
IT systems.
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 other return.
key employees
could damage the
Group's business,
financial condition
and results.
------------------ --------------------------- -----------------------------------------
Relationships The Group is dependent The Group has a dedicated team
with high upon the success of managers whose role it is
street of its Love2shop to ensure that the Group's products
and online voucher and flexecash(R) have a full range of retailers.
retailers card. These products They also work closely with
only operate provided all retailers to promote their
the participating businesses to Park's customers
retailers continue who utilise Park's vouchers
to accept them and cards to drive forward incremental
as payment for sales to their retail outlets.
goods or services Contracts which provide minimum
provided. The notice periods for withdrawal
failure of one are in place with all retailers
or more participating and are designed to mitigate
retailers could any potential impact on Park's
make these products business.
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 a
period, for example 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
Group's products of continual review of all
or services, for marketing material and websites
example, following to promote transparency to customers.
the collapse of Extensive testing and rigorous
a competitor. internal
This could result controls exist for all Group
in a downturn systems to maintain continuity
in demand for of online customer service.
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 in
is essential to place. The effectiveness of
ensure the continued each individual television advert
recruitment of is assessed separately and future
customers. Failure plans amended where appropriate.
to recruit 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 of
or market share customers and no single customer
arising from increased represents more than 3 per cent
activity from of total customer billings.
competitors. 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 2016
2016 2015
GBP'000 GBP'000
Billings 385,031 372,887
---------- ----------
Revenue 302,545 293,329
Cost of sales (274,060) (265,966)
---------- ----------
Gross profit 28,485 27,363
Distribution costs (2,909) (2,761)
Administrative expenses (15,176) (14,914)
---------- ----------
Operating profit 10,400 9,688
Finance income 1,523 1,246
Finance costs (66) (1)
---------- ----------
Profit before taxation 11,857 10,933
Taxation (2,169) (2,434)
---------- ----------
Profit for the year attributable
to equity holders of the parent 9,688 8,499
---------- ----------
Earnings per share (see note
7)
: basic 5.28p 4.66p
: diluted 5.18p 4.60p
Park Group plc
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR TO 31 MARCH 2016
2016 2015
GBP'000 GBP'000
Profit for the year 9,688 8,499
Other comprehensive income
Items that will not be reclassified
to profit or loss:
Remeasurement of defined benefit
pension schemes 533 (731)
Deferred tax on defined benefit
pension schemes (96) 146
-------- --------
437 (585)
-------- --------
Items that may be reclassified subsequently
to profit or loss:
Foreign exchange translation differences (21) 17
Other comprehensive income for the
year net of tax 416 (568)
-------- --------
Total comprehensive income for the
year 10,104 7,931
-------- --------
Park Group plc
CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 31 MARCH
2016
As at As at
31.03.16 31.03.15
GBP'000 GBP'000
Assets
Non-current assets
Goodwill 1,320 1,320
Other intangible assets 3,036 3,168
Investments - 8
Property, plant and
equipment 8,003 8,143
Retirement benefit
asset 1,390 1,293
13,749 13,932
---------- ----------
Current assets
Inventories 2,182 3,186
Trade and other receivables 8,729 11,212
Other financial assets 500 500
Monies held in trust 75,219 65,728
Cash and cash equivalents 32,735 26,333
Assets held for sale - 39
---------- ----------
119,365 106,998
---------- ----------
Total assets 133,114 120,930
---------- ----------
Liabilities
Current liabilities
Trade and other payables (79,022) (73,569)
Tax payable (1,019) (1,435)
Provisions (44,767) (43,186)
---------- ----------
(124,808) (118,190)
---------- ----------
Non-current liabilities
Deferred tax liability (181) (273)
Retirement benefit
obligation (1,700) (2,634)
---------- ----------
(1,881) (2,907)
---------- ----------
Total liabilities (126,689) (121,097)
---------- ----------
Net assets/ (liabilities) 6,425 (167)
---------- ----------
Equity attributable
to equity holders
of the parent
Share capital 3,674 3,650
Share premium 6,132 6,132
Retained earnings (3,070) (9,638)
Other reserves (311) (311)
Total equity 6,425 (167)
---------- ----------
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 2015 3,650 6,132 (311) (9,638) (167) - (167)
Total comprehensive
income for
the year
Profit - - - 9,688 9,688 - 9,688
Other comprehensive
income
Remeasurement
of defined
benefit pension
schemes - - - 533 533 - 533
Tax on defined
benefit pension
schemes - - - (96) (96) - (96)
Foreign exchange
translation
adjustments - - - (21) (21) - (21)
--------- --------- ----------- ----------- ---------- ---------------- ----------
Total other
comprehensive
income - - - 416 416 - 416
--------- --------- ----------- ----------- ---------- ---------------- ----------
Total comprehensive
income for
the year - - - 10,104 10,104 - 10,104
--------- --------- ----------- ----------- ---------- ---------------- ----------
Transactions
with owners,
recorded directly
in equity
Equity settled
share-based
payment transactions - - - 868 868 - 868
LTIP shares
awarded 24 - - (24) - - -
Dividends - - - (4,380) (4,380) - (4,380)
--------- --------- ----------- ----------- ---------- ---------------- ----------
Total contributions
by and distribution
to owners 24 - - (3,536) (3,512) - (3,512)
--------- --------- ----------- ----------- ---------- ---------------- ----------
Balance at
31 March 2016 3,674 6,132 (311) (3,070) 6,425 - 6,425
--------- --------- ----------- ----------- ---------- ---------------- ----------
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
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR TO 31 MARCH 2016
2016 2015
GBP'000 GBP'000
Cash flows from operating activities
Cash generated from operations 12,184 14,106
Interest received 1,405 1,177
Interest paid (66) (1)
Tax paid (2,490) (2,132)
-------- --------
Net cash generated from operating
activities 11,033 13,150
Cash flows from investing activities
Sale of investment property and
assets held for sale 43 41
Proceeds from sale of investments 9 -
Purchase of intangible assets (599) (212)
Purchase of property, plant and
equipment (527) (385)
Net cash used in investing activities (1,074) (556)
Cash flows from financing activities
Dividends paid to shareholders (4,380) (4,198)
Net cash used in financing activities (4,380) (4,198)
-------- --------
Net increase in cash and cash
equivalents 5,579 8,396
-------- --------
Cash and cash equivalents at beginning
of period 23,238 14,842
-------- --------
Cash and cash equivalents at end
of period 28,817 23,238
-------- --------
Cash and cash equivalents comprise:
Cash 32,735 26,333
Bank overdrafts (3,918) (3,095)
-------- --------
28,817 23,238
-------- --------
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 current liabilities. Funds are available 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:
IAS Defined Benefit Plans: Employee
19 Contributions (amendment)
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 2016 and have not been
applied in preparing the financial statements. Those standards that
have relevance to the Group are mentioned below:
Effective
from:
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 the 1 Jan
10, Consolidation Exception (amendment) 2016
IFRS
12 &
IAS
28
IAS Disclosure Initiative (amendment) 1 Jan
7 2017
IAS12 Recognition of Deferred Tax Assets 1 Jan
for Unrealised Losses (amendment) 2018
IFRS Financial Instruments 1 Jan
9 2018
IFRS Leases 1 Jan
16 2019
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 2015.
The annual report and accounts for the year ended 31 March 2015 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/ 2016 segments/ 2015
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 211,522 173,509 - 385,031 196,796 176,091 - 372,887
Inter-segment
billings - 143,152 (143,152) - - 135,667 (135,667) -
--------- ---------- ------------- --------- --------- ---------- ------------- --------
Total billings 211,522 316,661 (143,152) 385,031 196,796 311,758 (135,667) 372,887
--------- ---------- ------------- --------- --------- ---------- ------------- --------
Revenue
External
revenue 173,045 129,500 - 302,545 164,682 128,647 - 293,329
Inter-segment
revenue - 143,152 (143,152) - - 135,667 (135,667) -
--------- ---------- ------------- --------- --------- ---------- ------------- --------
Total revenue 173,045 272,652 (143,152) 302,545 164,682 264,314 (135,667) 293,329
--------- ---------- ------------- --------- --------- ---------- ------------- --------
Inter-segment sales are entered into under normal
arm's length commercial terms and conditions.
Result
Segment
operating
profit/(loss) 6,823 6,013 (2,436) 10,400 5,933 6,465 (2,710) 9,688
--------- ---------- ------------- --------- --------- ---------- ------------- --------
Finance
income 1,523 1,246
Finance
costs (66) (1)
--------- --------
Profit
before
taxation 11,857 10,933
Taxation (2,169) (2,434)
--------- --------
Profit 9,688 8,499
--------- --------
(6) Taxation 2016 2015
GBP'000 GBP'000
Charge for the year
- current and deferred 2,169 2,434
--------- ---------
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 GBP9,688,000 (2015 -
GBP8,499,000) and on the weighted average number of shares,
calculated as follows:
2016 2015
Basic eps - weighted average
number of shares 183,658,227 182,501,219
Diluting effect of employee
share options 3,544,265 2,202,818
------------ -------------
Diluted eps - weighted average
number of shares 187,202,492 184,704,037
------------ -------------
(8) Reconciliation of net profit to net cash inflow from operating activities
2016 2015
GBP'000 GBP'000
Net profit 9,688 8,499
Adjustments for:
Tax 2,169 2,434
Interest income (1,523) (1,246)
Interest expense 66 1
Research and development
tax credit (46) -
Depreciation and amortisation 1,382 1,497
Impairment of investment
property - 95
Impairment of other intangibles 13 16
-------- --------
Impairment of assets held
for sale - 14
-------- --------
Profit on sale of investments (1) -
Profit on sale of assets
held for sale (4) -
Decrease/ (increase) in
inventories 1,004 (1,629)
Decrease/ (increase) in
trade and other receivables 2,599 (1,072)
Increase in trade and other
payables 4,634 8,118
Increase in provisions 1,581 5,952
Increase in monies held
in trust (9,491) (8,214)
Decrease in retirement
benefit obligation (497) (611)
Translation adjustment (21) 17
Share-based payments 631 235
-------- --------
Net cash inflow from operating
activities 12,184 14,106
-------- --------
(9) 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.
(10) The financial information set out above does not constitute
the Group's statutory accounts for the years ended 31 March 2016 or
2015 but is derived from those accounts.
Statutory accounts for 2015 have been delivered to the registrar
of companies. The auditor, Ernst & Young LLP, has reported on
the 2015 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 2016 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 28
July 2016 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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June 14, 2016 02:00 ET (06:00 GMT)
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