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Park Group warns on profits

After the positive spin of last year's strategic pivot, comes the pain and costs
April 30, 2019

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.