Though trading has beaten management expectations, Park Group (PARK) has issued a profit warning for its financial year to March. The pre-paid gift card and voucher specialist said that effect of a change in the accounting treatment of its revenues on a net, rather than a gross basis, would result in an extra £0.5m financial impact.
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As a result, pre-tax profits will be “marginally below” consensus forecasts of £12.9m. The group also used the bad news to flag a £1.25m exceptional impairment to its existing book value, ahead of an office move. Finally, some £2m of additional costs involved in rolling out new initiatives have been identified, and are likely to dent profitability in the current year.