Trading Update

28 Mar 2007 10:01

Park Group PLC28 March 2007 Strictly embargoed until 10.01, 28 March 2007 PARK GROUP PLC ('Park' or 'the Company') Pre-close Trading Update Park Group today provides an update on trading in advance of its preliminaryresults for the year ending 31 March 2007 and responds to comments by theMinister of Department for Trade and Industry, the Rt Hon Ian McCartney MP,relating to protection of customers' monies. The excellent performance of the Christmas Savings division has resulted in anincreased revenue of approximately 31% year on year. Our Agency business hasgrown by 25% and our Corporate Voucher business also increased revenue by 40%compared with the previous year. Results for the year are therefore expected to be well ahead of marketexpectations and notwithstanding any unexpected events the directors will beannouncing an increased final dividend approximately in line with the increasedinterim dividend. As has now been well documented, one of our competitors, Farepak Food and GiftsLtd was placed into administration on 13 October 2006 by its parent EuropeanHome Retail plc. This resulted in substantial adverse publicity for ourindustry. As a direct consequence of this there has been a degree of loss ofcustomer confidence affecting the industry generally. Currently our orders forChristmas 2007 are 27% below the level they were at this time last year. Despitethis, the Group's cash position remains strong with cash balances £12m abovethat at the same date last year. For the year ended 31 March 2008 the Boardstill expects the Company to make a satisfactory profit at slightly below marketexpectations. Park welcomes the statement made by the Minister of Department for Trade andIndustry, the Rt Hon Ian McCartney MP, this morning. The establishment of TrustAccounts for Christmas Savings Clubs, will provide the security for customers'monies in the future. Park will now move forward and create Trust Accounts forcustomers' monies in accordance with the proposals announced today. The Board fully expects that following the measures that have been announcedtoday, customer confidence will be restored for Christmas 2008 going forward. - ends - For further information please contact: Peter Johnson/Martin StewartPark Group plcTel: 0151 653 1700 John West/Jeremy CareyTavistock CommunicationsTel: 020 7920 3150 This information is provided by RNS The company news service from the London Stock Exchange