Gift card firm cuts H1 losses as new products and acquisition kick in

BIRKENHEAD-based gift card specialist Park Group in on course for impressive full-year results, despite reporting a loss of £760K in the six months to September 30, as new products and a key acquisition make a significant impact on the company’s performance.

Listed Park, which focuses on multi-retailer, gift voucher and prepaid gift cards, is heavily reliant on the festive season to generate its profits with the H1 results usually showing a minus.

Up to 85% of its annual sales to consumers are invoiced and dispatched between October and December.

However, H1 year-on-year billings improved 5.9% to £98.3m (H1 2015: £92.8m) and the pre-tax loss of £760K was down from £1.4m last year.

Revenue of £72.4m was only slightly up on last year’s £72m, but the dividend 11.8% to 95p per share (H1 2015: 85p per share). Cash balances peaked at a record £217m (H1 2015: £206m).

The company said corporate billings grew 4% at £68.7m (H1 2015: £66m) while consumer billings increased 10.5% to £29.6m (H1 2015: £26.8m) with order books running well ahead of the comparable period last year as new products made a significant impact.
 
Meanwhile, Fisher Moy International Ltd, acquired after period end, is expected to be earnings enhancing in first full year of ownership.

Chief executive Chris Houghton told the TheBusinessDesk the company had been boosted by growth in Christmas savings its growing offer to the corporate sector.

“We’ve got new products coming through, and digital reward platform which is performing well,” he said. “The acquisition of Fisher Moy is helping the business in its communication with employees and customers and the outlook for the company is extremely encouraging.

“We have managed to reduce our first-half losses and are hopeful of turning a profit in the first half of next year.”