LONDON (Alliance News) - Gift card provider Park Group PLC said Tuesday its annual profit grew 4.1% as both consumer and corporate business performed well, increasing billings.
For the financial year to March 31, the company posted pretax profit of GBP12.9 million versus GBP12.4 million in 2017.
Revenue decreased 4.7% to GBP296.2 million from GBP310.9 million year-on-year, as both divisions reported a fall in revenue.
The company's total billings increased by 2% to GBP412.8 million from GBP404.5 million year-on-year.
"Billings is a more meaningful measure of the level of activity of the group than revenue. This is due to our revenue from prepaid cards being reported on a 'net' basis and our Love2shop vouchers on a 'gross' basis," Chairman Laura Carstensen said.
The company said its consumer business continued to experience "positive momentum and performance". Consumer numbers grew 1.2% to 436,000 and average order value was up 2.6% at GBP521.
Consumer billings grew to GBP222.2 million, though revenue dropped 3.4% to GBP168.3 million, due to increased value loaded onto prepaid cards, the company said.
"As well as allowing our customers to save in a secure, controlled and structured way, free of last minute financial concerns, our consumer business remains a robust revenue driver for our business," Chief Executive Officer Ian O'Doherty said.
Park Group corporate business, under the name Love2shop Business Services, generated billings of GBP188.2 million, up 0.3% year-on-year. Revenue was down 6.5% to GBP127.9 million.
The company issued a final dividend 5.2% higher on last year of 2.05 pence per share, lifting its total dividend to 3.05p from 2.90p last year.
Park Group shares were trading 0.9% up at 81.50p each.
