Park Group (PKG) is a very different company to its origins as a supplier of Christmas hampers, which now accounts for just 2 per cent of sales. The savings scheme provider is pushing on digitally, last year gaining more than 64 per cent of new consumer accounts via its websites. A consumer app is also in the works, due for a soft launch in July.
Consumer billings were up 7.5 per cent to £212m thanks to an additional 5,000 customers signing up. The average order size was also up 5.6 per cent on the previous year to £489. Management says the newly introduced 'combi' offer - which gives customers a Love2shop card and another for a national retailer that was not previously part of the scheme - has proven popular. Primark and Sainsbury's were added to the scheme, while Amazon and Tesco have been signed up for the 2016 season.
Trading for the corporate business was more mixed. Employee incentive scheme Everyday Benefits grew payments by more than a third, but consumer credit sales continued to decline due to reduced demand from core customer Provident Financial (PROV). Sales fell by more than three-quarters to £3.9m, but this is now just a fraction of group billings.
Analysts at house broker Arden Partner adjusted pre-tax profits of £12.7m for the year to March 2017, giving EPS of 5.4p (£11.9m and 5.2p in FY2016).
PARK GROUP (PKG) | ||||
|---|---|---|---|---|
| ORD PRICE: | 71.75p | MARKET VALUE: | £132m | |
| TOUCH: | 71.5-71.75p | 12-MONTH HIGH: | 98p | LOW: 62p |
| DIVIDEND YIELD: | 3.8% | PE RATIO: | 14 | |
| NET ASSET VALUE: | 4p | NET CASH: | £32.7m | |
| Year to 31 March | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2012 | 279 | 8.6 | 3.9 | 2 |
| 2013 | 279 | 9.5 | 4.6 | 2.1 |
| 2014 | 270 | 9.4 | 4.2 | 2.3 |
| 2015 | 293 | 10.9 | 4.7 | 2.4 |
| 2016 | 303 | 11.9 | 5.3 | 2.75 |
| % change | +3 | +9 | +13 | +15 |
Ex-div: 25 Aug Payment: 3 Oct | ||||
