Delay in contract impacts trading at Birkenhead based business
Birkenhead based Park Group has said that a delay in a contract and changes in its management structure has affected trading.
The firm, which specialises in gift vouchers and pre-paid gift cards, released a trading statement ahead of its preliminary results.
The board said it expects to report continued growth with results ahead of last year but marginally below market expectations.
A statement read: “This is predominantly due to the later than expected roll out of a significant contract with a client in the corporate business.
“The results have also been affected by costs associated with the recent changes in senior management.
“The delay of this corporate contract led to billings for the corporate business remaining relatively flat compared with the same period last year.”
Roll out of the contract is now underway with revenues expected to rise during the course of the financial year.
The statement added: “In the Consumer business, the momentum in the first half of the year translated into a strong performance in the second half, with Park recording another successful Christmas period.
“Completed orders for the Consumer business were almost 4 per cent ahead of last year.”
Downloads of the Park Savings App, launched in January 2017, are now in excess of 170,000 with more customers signing up.
The overall financial position of the group remains solid, with cash balances and order books again ahead of their positions at the same time last year.
The company announced earlier this year that Gary Woods, the managing director of subsidiary Park Retail, would standing down from the board as he approaches retirement. He is being replaced by Julian Coghlan.
