Park Group is a specialised financial services business and is one of the UK’s leading multi-retailer voucher and prepaid gift card businesses, focused on the corporate gift and Christmas savings markets. Sales are increasingly generated through the internet, supported by a direct salesforce and agents.
Park Group continued to trade well in H119, with order books in line with expectations, a reduced seasonal loss, strong cash flow and the interim dividend increased by 5%. The anticipated IFRS 15 restatement showed a relatively modest annual profit deferral of c 3%, with no impact on billings, ultimate profitability, cash flow or dividend-paying capacity. The early results from the strategic review undertaken by the new senior management team highlight the good growth potential in multi-retailer redemption products and the strengths of Park’s existing offering, with additional opportunities for growth and efficiency through streamlining, simplification and an acceleration in the digital enablement. Card and digital formats are leading growth in existing markets and will be given yet more focus. Park also plans to use that same technological and product capability to further penetrate the consumer market, a £2bn+ market opportunity where its current penetration is minimal compared with its dominant position in the Christmas savings market and strong position in the business sector.
The market is estimated at c £6bn by the UK Gift Card & Voucher Association, and is fragmented, providing significant opportunities for growth.