APP.L Regulatory News (APP)

('Park' or 'the Company' or 'the Group')

1 December 2015

Park Group is the UK's leading multi-retailer gift voucher and prepaid gift card business focussed on the corporate and consumer markets. Park's business is generally seasonal and the first half of the year is traditionally loss making with the bulk of annual revenues generated in the second half.

Key points: Financial

· Billings rise 23.1 per cent to £92.8m (2014 - £75.4m)

· Revenue increases 23.2 per cent to £72.1m (2014 - £58.5m)

· Seasonal pre-tax loss reduces to £1.4m (2014 - loss £2.4m)

· Interest receipts improve 21.2 per cent to £0.8m (2014 - £0.6m)

· Dividend raised 6.3 per cent to 0.85p per share (2014 - 0.80p)

· Cash balances peak at £206m (2014 - £189m)

Key points: Operations

· Corporate billings up 12.8 per cent to £66.0m (2014 - £58.6m)

· Consumer billings increase 59.0 per cent to £26.8m (2014 - £16.8m)

· Online business continues to grow

Chris Houghton, chief executive officer, commented:

"The second half has started well, as we enter the key delivery period, with orders significantly ahead of the same period last year. Park looks forward with confidence and is well placed to deliver another strong performance."

Enquiries:

INTERIM STATEMENT 2015

It is pleasing to report another strong performance from Park Group. In the six months to 30 September 2015 the Company maintained the momentum of the previous financial year achieving considerable further success in booking orders for its corporate and consumer businesses.

Financial highlights

Park is a seasonal business, which is traditionally loss making in the first half of the year, however it remains a critically important time for the Group, as the majority of orders are booked during this period. Order activity in the first half of the year was particularly encouraging and we completed the period with a strong order book for Christmas Savings which, in the main, will be delivered in the run up to the festive season.

The first half of the year delivered further growth in billings in both the consumer and the corporate businesses. In the six months to 30 September 2015 total billings rose by 23.1 per cent compared to the equivalent period last year to £92.8m (H1 2014 - £75.4m) while revenue increased by 23.2 per cent to £72.1m (H1 2014 - £58.5m).

The operating loss improved further, to £2.2m (H1 2014 - loss £3.1m) while interest receipts grew by 21.2 per cent to £0.8m (H1 2014 - £0.6m) reflecting higher cash balances. The pre-tax loss reduced to £1.4m (H1 2014 - loss £2.4m). Cash balances held in trust at 30 September were £167.0m (H1 2014 - £152.1m). Total cash balances peaked at a record £206m (H1 2014 - £189m) at the beginning of November.

Dividend

The Board has declared an interim dividend for the six months to 30 September 2015 of 0.85p per share (2014 - 0.80p). The dividend will be paid on 6 April 2016 to shareholders on the register on 4 March 2016.

Operations

The corporate business, supplying over 7,000 organisations in a UK voucher and gift card market, worth an estimated £5bn (source: UK Gift Card & Voucher Association), delivered another strong performance. The business incorporates a wide range of gift cards, vouchers and e-codes in its tailor-made schemes which are designed for customer organisations to recognise, incentivise and reward staff for excellent performance. Corporate billings to third party customers rose by 12.8 per cent to £66.0m (H1 2014 - £58.6m). New products are performing well and made a significant contribution to the 15.0 per cent growth in billings to the incentive market and 45.0 per cent growth in billings to the employee benefits segment. Park's exposure to the consumer credit market reduced further, with billings 63.8 per cent lower than the same period last year at £1.3m (H1 2014 - £3.7m). Excluding consumer credit, total corporate billings grew by 16.9 per cent in the six months compared with the same period last year.

Over the last few years we have been building our capabilities within the business to support the continuing growth in our customer base. This ongoing commitment to development has been recognised with our corporate business, Love2shop Business Services, being awarded the prestigious 'Company of the Year' award at the Institute of Promotional Marketing COGS awards, which recognise excellence and creativity within the industry.

In addition, Love2shop Holidays, our in-house travel business, which redeems Park's cards and vouchers, as well as accepting traditional payment methods for holidays, was awarded 'Independent Travel Agent of the Year' at the 2015 Brit Travel Awards.

Park's prepaid card, flexecash®, made further progress with billings in the period rising by 24.1 per cent to £22.0m (H1 2014 - £17.7m). The card, which is offered alongside Park's traditional paper voucher, is now accepted by 64 retail brands in the UK (H1 2014 - 63 brands) while the voucher is accepted by 148 brands in the UK (H1 2014 - 144 brands) and 51 brands in Ireland (H1 2014 - 44 brands).

Our online business continues to expand, with e-commerce billings through our websites highstreetvouchers.com, Love2shop.co.uk and Love2reward.co.uk achieving a 14.0 per cent year on year growth to £9.8m (H1 2014 - £8.6m). Customers appreciate the freedom and choice offered by these internet sites which allow users to interact with Park in a manner and at a time which suits the lifestyle of the individual client.

The consumer business, offering an extensive range of vouchers, prepaid cards, hampers and other gift products, had an excellent first half with billings rising by 59.0 per cent to £26.8m (H1 2014 - £16.8m).  This increase reflects strong customer demand and the early release of some orders. The months leading up to the festive season are critical for the business as orders booked earlier in the year are delivered. It is pleasing to report that the order book for the year is around 7.0 per cent ahead of the same period last year.

The consumer business also carries out storage and contract packing for third parties and this operation generated billings of £1.0m (H1 2014 - £0.6m) in the period under review.

The marketing campaign for the 2016 festive season, which commenced in September and usually runs for five months, has started well and the early order indications are very encouraging.

Outlook

The second half of the financial year has started well as we enter the key delivery period, with orders for Christmas 2015 well ahead of the same period last year. Park looks forward with confidence and is well placed to deliver another strong performance.

Peter Johnson

Non-executive chairman

1 December 2015

PARK GROUP PLC

UNAUDITED CONSOLIDATED INCOME STATEMENT

FOR THE HALF YEAR TO 30 SEPTEMBER 2015

All activities derive from continuing operations.

PARK GROUP PLC

UNAUDITED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

FOR THE HALF YEAR TO 30 SEPTEMBER 2015

PARK GROUP PLC

UNAUDITED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

AS AT 30 SEPTEMBER 2015

PARK GROUP PLC

UNAUDITED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

PARK GROUP PLC

UNAUDITED CONSOLIDATED STATEMENT OF CASH FLOWS

FOR THE HALF YEAR TO 30 SEPTEMBER 2015

PARK GROUP PLC

UNAUDITED SEGMENTAL REPORTING

FOR THE HALF YEAR TO 30 SEPTEMBER 2015

NOTES TO THE INTERIM RESULTS

(1) Basis of preparation

The financial information in this interim report has been prepared in accordance with the International Financial Reporting Standards as adopted by the EU and the AIM rules of the London Stock Exchange and on the basis of the accounting policies described in Park Group plc's annual report and accounts for the year ended 31 March 2015. These accounting policies have been based on the current standards and interpretations expected to be effective at 31 March 2016. The Group does not expect there to be a significant impact on the results from standards, amendments or interpretations which are available for early adoption but which have not yet been adopted.

IFRS 15 Revenue from Contracts with Customers, which was released on 28 May 2014, has not yet been endorsed by the EU. The Group is still considering the impact of this standard on its financial statements.

The financial statements have been prepared under the historical cost convention, as modified by the accounting for financial instruments at fair value. In addition this interim financial report does not comply with IAS 34 Interim Financial Reporting, which is not currently required to be applied under AIM rules.

The directors are of the opinion that the financial information should be prepared on a going concern basis, in the light of current trading and the forecast positive cash balances for the foreseeable future.

The financial information included in this interim financial report for the six months ended 30 September 2015 does not constitute statutory accounts as defined in section 434 of the Companies Act 2006 and is unaudited. A copy of the Group's statutory accounts for the year ended 31 March 2015, on which the auditors gave an unqualified opinion and did not make a statement under section 498 of the Companies Act 2006, has been filed with the registrar of companies.

(2) Taxation

The taxation credit for the six months to 30 September 2015 has been calculated using an overall effective tax rate of 20.0 per cent which has been applied to the taxable income (half year to 30 September 2014 - 21.0 per cent).

(3) Earnings per share

Basic earnings per share (eps) is calculated by dividing the earnings attributable to ordinary shareholders by the weighted average number of ordinary shares outstanding during the period.

For diluted eps, the weighted average number of ordinary shares in issue is adjusted to assume conversion of all dilutive potential ordinary shares.

The calculation of basic and diluted eps is based on the following figures:

(4) Reconciliation of net (loss)/profit to net cash (outflow)/inflow from operating activities

(5) Approval

This statement was approved by the board on 1 December 2015.

(6) Reports

A copy of this announcement will be available on the Company's website from today www.parkgroup.co.uk and will be mailed to shareholders on 18 December 2015. Copies will also be available for members of the public at the Company's registered office - Valley Road, Birkenhead CH41 7ED and also at the offices of the Company's registrars, Computershare Investor Services PLC, P O Box 82, The Pavilions, Bridgwater Road, Bristol BS99 7NH.