APP.L Regulatory News (APP)

27 Sep 2006 15:37

Park Group PLC27 September 2006 Immediate release 27 September 2006 PARK GROUP PLC ("Park" or "the Company" or "the Group") AGM and EGM Statement CHAIRMAN'S STATEMENT The past 12 months have seen a number of changes and the further development ofthe Group following fundamental decisions on strategy. I am pleased to report that our cash savings business has shown excellent growthwith revenue increasing by 7.3% to £230m for 2005/6, and profit before taxincreasing by 15.6% during the same period. Our Park and Country brands currently have orders 9% above the same period lastyear. We were pleased to be able to acquire one of our major competitors, FamilyHampers from the administrators of FHSC Ltd earlier this year, which has added afurther 21,000 agents, bringing the total number to over 110,000 who serve over610,000 customers throughout the UK. This compares with 518,000 last year. Totalorders for Christmas 2006 are now 25% higher than at the same time last year. Our corporate voucher business increased revenue by 10% last year to £61m. I ampleased to report that this trend is continuing, reinforcing the High StreetGift voucher's position as the market's leading multi-redemption voucher. Following a strategic review of the business and the poor performance of ParkDirect Credit, the Board took the decision to exit the home collected creditmarket. We had established a significant business from a standing start in 1998.Unfortunately, market pressures, increasing regulation and the impact ofinternational financial reporting on results made it unlikely that we would seea return from this business in the medium term. The ultimate disposal of thisbusiness has placed the Group in a much stronger financial position with fundsavailable to invest in our successful growing businesses. Following the disposal of this business, Andy Wright has stepped down from theGroup Board and has left the Company. The Board would like to thank Andy for thecontribution he has made during his time with Park and wish him well for thefuture. Imagine Finance, our new loan broking business, found it difficult to makeprogress last year but is now increasing the level of business processed. Our cash flow remains impressive and funds on deposit of £120 million are nowsome £46 million higher than the corresponding period last year. The Group hasno bank borrowings and as market leaders in two of its three markets, is wellplaced for the future. At the EGM also convened today, the Chairman made the additional followingstatement: Following the despatch of the circular convening the EGM, some shareholders haveexpressed concern that the move to AIM would reduce their oversight ofsignificant corporate transactions. In view of this the Board has adjourned this meeting in order to proposeamendments to the Company's Articles of Association which will bring theArticles into line with current best practice. As part of these changes the Board will propose a requirement that it shouldcontinue to seek shareholder approval for class 1 transactions and related partytransactions as defined by the listing rules of the UK Listing Authority. Following the adoption of new articles the resolution to approve the move to AIMwill be re-considered by shareholders. PETER JOHNSON27 September 2006 This information is provided by RNS The company news service from the London Stock Exchange