Final Results
June 06 2003 - 3:00AM
UK Regulatory
RNS Number:9973L
Park Group PLC
06 June 2003
6 June 2003
Preliminary Results for the Year
Ended 31 March 2003
Summary
2003 2002
Turnover #193.72m #198.16m
Profit before taxation #3.11m #1.81m
Earnings per share 1.30p 0.74p
Final dividend per share 0.5p -
Total dividend per share 0.75p -
* Pre-tax profit up 72 per cent to #3.1m
* Further growth in cash savings
* First operating profit for cash lending division
* Bad debt ratio improves
Peter Johnson, Chairman, comments: "We have made a good start to the current
financial year with orders for Christmas 2003 in our cash savings business
currently 12.7 per cent ahead of the comparable period in 2002. At the same
time we are delighted to have moved into profit before interest in our cash
lending division where we see considerable scope for building a strong and
profitable business. Against this background, and as we continue to concentrate
on growing shareholder value, I feel the group can look forward to another year
of further progress."
Enquiries: Peter Johnson, Executive Chairman
Chris Houghton, Finance Director
Park Group plc - Tel: 0151 653 1700
Issued on behalf of Park Group plc by Tavistock Communications Limited (contact:
Keith Payne, tel: 020 7600 2288).
Chairman's Statement
The strong progress reported twelve months ago continued in the year to 31 March
2003 with profits before tax advancing 72 per cent to #3.1m from #1.8m in the
previous year. This excellent result was achieved on turnover of #193.7m. The
year was marked by further growth in the cash savings business and,
significantly, the first operating profit for the cash lending division.
Earnings per share improved 75.7 per cent to 1.30p from 0.74p.
Having resumed the payment of dividends with the announcement of an interim
dividend at the half year, the directors are pleased to recommend a final
dividend of 0.5p, payable on 1 October 2003 to shareholders on the register at
the close of business on 5 September 2003 and making a total distribution for
the year of 0.75p.
Group cash flow remained strong with cash balances closing the year 53.1 per
cent up at #7.9m, after the acquisition of two financial service companies which
added further volume to our growing presence in home collected credit.
Another very successful year for the cash savings business saw its profit before
tax increase by 31.6 per cent to #5.4m from #4.1m. Despite a strategic
withdrawal from certain markets which accounted for a reduction in sales of
#7.5m, turnover for the year amounted to #172.6m, only marginally down on the
previous year's #173.6m.
Sales of The High Street Gift Voucher, which offers customers the flexibility of
purchasing from a wide range of items through our many retail partners or giving
the voucher as a gift in its own right, continue to grow strongly.
The continuing drive for additional corporate business also produced encouraging
results as voucher sales to the credit and incentive markets grew by 6.7 and
22.5 per cent respectively. The appointment in January this year of a dedicated
business development director, with extensive practical experience of the
voucher market, augurs well for the future of The High Street Gift Voucher,
already the UK's largest multi-redemption voucher.
It is especially pleasing to report that our developing cash lending division
achieved its first operating profit during the year - #0.3m against a previous
year's loss of #0.8m. The branch network was systematically expanded through
organic growth. The acquisition of Cable Cash Point, with six outlets, helped
us to finish the year on 32 branches compared with 18 a year ago. The
subsequent acquisition, last November, of Cheshire Securities boosted the value
of our North West region's loan book.
As the business becomes more mature our bad debt experience is moving closer to
that experienced by established competitors. The charge during the year
amounted to 11.7 per cent of loans issued, down from 12.9 per cent in 2001-02.
Our 32-branch network is now producing an operating profit and providing a solid
base from which to grow the business. During the year we began to introduce
home collected credit into our branches while expanding cheque cashing into
areas serviced by our home collected credit operation. The acquisition of Cable
Cash Point also brought us a revolving credit product, which is now being rolled
out to all branches. We have identified a number of new branch locations which
are presently under active consideration.
The marketing services division performed less well than had been expected. The
loss of some major contracts resulted in a disappointing year for Consus. We
responded to the loss of these contracts, restructured the business and absorbed
the associated costs within the year's results.
Link Brand Solutions has continued to build relationships with leading brands
and together with its partners has developed new toiletry ranges for launch in
the retail market. Although in loss last year this business has entered the new
financial year with a promising forward order book.
We have made a good start to the current financial year with orders for
Christmas 2003 in our cash savings business currently 12.7 per cent ahead of the
comparable period in 2002. At the same time we are delighted to have moved into
profit before interest in our cash lending division where we see considerable
scope for building a strong and profitable business. Against this background,
and as we continue to concentrate on growing shareholder value, I feel the group
can look forward to another year of further progress.
I would like to thank all staff for their hard work and enthusiasm which
contributed significantly to last year's improved result.
Peter Johnson
Chairman
PRELIMINARY ANNOUNCEMENT OF RESULTS
FOR THE YEAR ENDED 31 MARCH 2003
2003 2002
Notes #'000 #'000
Turnover
- Continuing operations 192,876 197,952
- Continuing operations - acquisitions 844 -
- Discontinued operations - 212
1 193,720 198,164
Operating profit
- Continuing operations 1,631 452
- Continuing operations before
amortisation of goodwill 1,680 500
- Amortisation of goodwill (49) (48)
- Acquisitions 180 -
- Acquisitions before
amortisation of goodwill 208 -
- Amortisation of goodwill (28) -
- Discontinued operations - (263)
1 1,811 189
Loss on disposal of business - (151)
Investment income 1,331 1,768
Interest payable (30) -
Profit on ordinary activities before taxation 3,112 1,806
Taxation 2 (1,007) (600)
Profit on ordinary activities after taxation 2,105 1,206
Dividends (1,219) -
Retained profit for the financial year 886 1,206
Earnings per share
- basic 3 1.30p 0.74p
- diluted 3 1.27p 0.74p
BALANCE SHEETS AS AT 31 MARCH
2003 2002
#'000 #'000
Fixed assets
Intangible assets 1,530 437
Tangible assets 10,220 10,204
Investments 2 2
11,752 10,643
Current assets
Stocks 1,768 1,445
Debtors 22,070 18,345
Cash 7,894 5,157
31,732 24,947
Creditors (47,994) (40,993)
Net current liabilities (16,262) (16,046)
Net liabilities (4,510) (5,403)
Capital and reserves 3,251 3,250
Share premium account 815 809
Profit and loss account (8,576) (9,462)
Shareholders' funds (4,510) (5,403)
GROUP CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 MARCH
2003 2003 2002 2002
#'000 #'000 #'000 #'000
Net cash inflow from operating activities 5,223 980
Returns from investments and servicing
of finance
Interest received 1,331 1,739
Interest paid (30) -
1,301 1,739
Corporation tax paid (443) (232)
Capital expenditure and financial investment
Purchase of intangible fixed assets - (485)
Purchase of tangible fixed assets (1,619) (2,119)
Sale of tangible fixed assets 192 488
(1,427) (2,116)
Acquisitions and disposals (1,924) -
Financing - issue of ordinary share capital 7 4
Increase in cash 2,737 375
Notes
1. Analysis of turnover and operating profit
Year ended Year ended
31.3.03 31.3.02
Turnover Operating Turnover Operating
profit/(loss) profit/(loss)
#'000 #'000 #'000 #'000
Financial services
- cash savings 172,591 2,222 173,602 745
- before amortisation of goodwill 2,271 793
- amortisation of goodwill (49) (48)
Financial services
- cash lending 8,077 140 5,581 (777)
Financial services
- cash lending acquisitions 844 180 - -
- before amortisation of goodwill 208 -
- amortisation of goodwill (28) -
Marketing services 12,208 (731) 18,981 221
193,720 1,811 198,164 189
Financial services - home collected credit result includes -
#'000 #'000
Charge for bad and doubtful debts (2,189) (1,769)
2. Taxation
#'000 #'000
Charge for the year - current and deferred 990 611
Prior year adjustments 17 (11)
1,007 600
3. Earnings per share
The calculation of basic and diluted earnings per share is based on the profit
on ordinary activities after taxation of #2,105,000 (2002 #1,206,000) and on the
weighted average number of shares, calculated as follows:
2003 2002
Basic eps - weighted average number of shares 162,526,540 162,472,708
Diluting effect of employee share options 2,591,498 1,488,734
Diluted eps - weighted average number of shares 165,118,038 163,961,442
4. The financial information set out above does not constitute the company's
statutory accounts for the years ended 31 March 2003 or 2002 but is derived from
those accounts. Statutory accounts for 2002 have been delivered to the
Registrar of Companies and those for 2003 will be delivered following the
company's annual general meeting. The auditors have reported on those accounts;
their reports were unqualified and did not contain statements under section 237
(2) or (3) of the Companies Act 1985.
5. The annual report will be posted to shareholders on 18 July 2003 and the
annual general meeting of the company will be held in Birkenhead on Tuesday 23
September 2003.
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR KGGGVNKDGFZM