Losses widen at Park Group

THE boss of Christmas hamper firm Park Group today revealed a “satisfactory” set of results in what he described as some of the toughest economic conditions since the company was formed more than four decades ago.

In the six months to September 30 – the period where the group traditionally makes as loss as sales are not invoiced until the second half – losses before tax widened from £3.6m to £4.2m.

Revenue increased from £32.3m to £34.2m boosted by strong performance in the corporate voucher business which accounts for around 60% of turnover. Sales of vouchers were up 5% as a result of new business wins.

In its Christmas savings business, order for 2009 were 7% lower than the previous year and order values have remained similar to 2008 at £375.

However, the group said early orders for Christmas 2010 are well above the comparable figure at this time last year.

It added that as the economy starts to show signs of recovery the group is well placed to deliver growth.

Chairman Peter Johnson added: “The group’s performance again demonstrates the robustness of its long established, yet evolving, business model.

“Our corporate business continues to gain market share and early responses to our Christmas 2010 recruitment campaign are encouraging with orders well above those received at the same time last year.”

Park Group declared an unchanged interim dividend of 44p per share.