LONDON (Alliance News) - Park Group PLC on Tuesday said adjusted pretax profit for the year to March-end will be marginally below market estimates due to additional investment costs and higher than anticipated impact of new IFRS15 accounting standard.
The UK listed company also said that Laura Carstensen has agreed to continue as non-executive chair for another three years from June 3.
Shares in the company were trading 10% lower at 68 pence each on the back of the news. The company compiled analyst consensus forecasts GBP12.9 million in adjusted pretax profit on revenue of GBP112 million, post IFRS15.
The company, which provides gift vouchers and prepaid gift cards, anticipates additional GBP500,000 costs relating to investment in previously announced new strategic business plan. It also expects financial impact of IFRS15 to be GBP500,000 higher than previously anticipated mainly due to strong growth in the company's more profitable card business, as a greater proportion of profit will be deferred until the current year.
"Park delivered another good performance last year and, importantly, we put in place our new strategic business plan. We are beginning to make tangible progress delivering the initial steps of the plan, in terms of premises, people and digital investment. This investment is expected to result in enhanced growth prospects and a more robust business model, putting us in a much stronger position for the future," said Chief Executive Ian O'Doherty.
For 2020 financial, Park anticipates trends experienced in 2019 financial to continue, with good growth in Corporate business partially offset against a slower Consumer Christmas savings market. It also intends to record GBP2 million additional costs relating to relocating to new offices and additional technology and marketing investment.
The company is scheduled to release its results for 2019 financial on June 12.
