Park Group

LN: PARK

£98.3m market cap

52.75p last close

Park Group is a specialised financial services business and is the UK’s leading provider of multi-retailer redemption products. Consumers can access products directly through its market-leading Christmas Savings offering while corporate customers use these products to supply a range of incentive and reward products.

Investment summary

FY19 saw good underlying progress in Park’s core multi-redemption products. Billings increased 3.4% to £426.9m, driven by the Corporate business and more profitable own-branded product, and despite £6.2m of discontinued low margin sales. Profit before tax and the £1.2m non-cash exceptional impairment of the group’s historical head-office site was little changed at £12.5m (FY18: £12.6m). This was despite an additional £0.9m deferral of revenues and profits under the new IFRS15 accounting standard, £0.5m is strategic development costs, and a one-off pension charge of £0.3m. Cash balances remained strong and including cash held in trust reached a record £133.8m during the year. The full year DPS increased by 5% to 3.2p. Management expects similar positive trends in the current year but for the c £2.0m net implementation costs for the strategic plan to dampen profits. From FY21 onwards it targets p&l benefits of £2–5m pa.

Y/E Mar
Revenue (£m)
EBITDA (£m)
PBT (£m)
EPS (p)
P/E (x)
P/CF (x)
2018A 111.1 12.7 12.6 5.5 9.6 N/A
2019A 110.4 12.3 12.5 4.8 11.0 N/A
2020E 113.8 11.4 11.8 5.1 10.3 N/A
2021E 117.5 13.5 13.3 5.8 9.1 N/A
Last updated on 19/09/2019
Industry outlook

The market is estimated at c £6bn by the UK Gift Card & Voucher Association, and is fragmented, providing significant opportunities for growth.

Last updated on 19/09/2019
Share price graph
Balance sheet
Forecast net cash (£m) 31.4
Forecast gearing ratio (%) N/A
Price performance
%
1m
3m
12m
Actual (15.6) (24.1) (21.6)
Relative* (17.9) (24.2) (21.4)
52-week high/low 80.0p/52.8p
*% relative to local index
Key management
Laura Carstensen Chairman
Ian O'Doherty CEO

Content on Park Group