Profits fall at Park Group
PROFITS at Christmas hamper firm Park Group fell 14.5%, despite an increase in turnover, as the firm’s finance income was hit by low interest rates.
Turnover at the Liverpool business increased 5% to £263.2m for the year to the end of March 2010 (2009: £250.5m) and operating profit increased 38% to £4.3m (2009: £3.1m).
However, pre-tax profits were down 14.5% on the previous year to £5.3m (2009: £6.2m), largely because the very low interest rate environment reduced finance income from £3.1m to under £1m.
The traditional Christmas savings business saw operating profit rising 40% to £2.8m.
Park also sells its own-brand vouchers marketed under the Love2reward brand, as well as individual store vouchers to corporate customers who use them for incentive schemes and for sale to consumers. This part of the business saw operating profit increased 13% to £3.2m.
Park added that it had successfully introduced its pre-paid Flexcash card, and that it continued to see online sale grow.
Peter Johnson, chairman, said: “Corporate vouchers are benefiting from a rise in new business and Christmas savings is seeing a steady improvement in customer numbers and order levels. In due course both divisions will be boosted by the introduction of flexecash – our new FSA authorised prepaid card.”
He added that although most sales are earned in the second half of the year, the current year had started well with both core businesses ahead of the comparable period 12 months earlier.
The company said it would pay a final dividend of 0.88p a share making a total dividend of 1.32p a share for the year.
