RNS Number:8992S
Park Group PLC
05 December 2003
INTERIM RESULTS FOR THE HALF YEAR
ENDED 30 SEPTEMBER 2003
5 December 2003
Summary Half Year Half Year Year to
to 30.09.03 to 30.09.02 31.03.03
Turnover #26.8m #23.5m #193.7m
Operating (loss)/profit before
goodwill amortisation #(4.2)m #(3.4)m #1.9m
(Loss)/profit before taxation #(3.7)m #(2.8)m #3.1m
Dividend per share 0.325p 0.25p 0.75p
Earnings per share - - 1.30p
* Continued progress in cash savings
* Christmas 2004 responses to date comfortably up
* Acquisitions spur cash lending
* Interim dividend increased
Peter Johnson, chairman, states: "Our cash savings and cash lending divisions
continue to enjoy healthy growth. Strong cash flow and a recession-resilient
business model provide us with a stable platform on which to build these two
core activities. Their performance so far in the current year has been such
that I am confident of further progress for the full year to next March."
Enquiries:
Peter Johnson
Chairman
Park Group plc
Tel: 0151 653 1700
Issued on behalf of Park Group plc by Tavistock Communications Limited (Contact
Keith Payne, tel: 020 7920 3150).
Chairman's Interim Statement - 5 December 2003
I am pleased to report that results for the first half of the current financial
year confirm the continued progress of our cash savings and cash lending
businesses, with turnover up encouragingly in both divisions. Group turnover
was #3.3m higher than a year ago at #26.8m. The higher seasonal loss for the
half-year, at #3.7m against #2.8m, was the result of expected losses in our
marketing services division.
The board has declared an increased interim dividend of 0.325p, against 0.25p
last year, payable on 7 April 2004 to shareholders on the register at the close
of business on 5 March 2004.
Operations
Cash Savings
Turnover in the cash savings division increased by 26 per cent to #17.1m,
reflecting particularly strong growth in sales of The High Street Gift Voucher.
Voucher sales to the corporate incentive market have increased during the first
half as we grow our presence in this important sector.
We have continued to invest in systems development and staff while at the same
time expanding our web-based system to provide an improved service to customers.
The traditional operating loss incurred by this division in the first half was
similar to that reported a year ago at #3.0m.
In response to sustained agent recruitment and retention programmes, agent
numbers for Christmas 2003 at 70,000 are 8 per cent up on last year while
orders, which are now being delivered, are 13 per cent higher.
Our 2004 advertising campaign began in late September with the launch of a
television commercial and a new catalogue offering the widest ever range of
products. Responses to date are up by 21 per cent on the same time last year.
Cash Lending
Our cash lending division continues to grow, spurred by the acquisition of Cable
Cashpoint in July 2002 and of Cheshire Securities in November 2002. Turnover
increased by 71 per cent to #5.7m while the operating loss was halved to #0.1m
from #0.2m.
Expansion of the branch network continues and we are now operating out of 39
branches compared with 29 at the same point last year. Meanwhile customer
numbers have increased by 55 per cent to 75,000.
Additional investment in systems and staff has been made to support our growing
network and product range.
Following a successful trial we have rolled out our new Cash Reserve product to
all branches. This offers an 'overdraft-style' facility to customers who repay
monthly by direct debit.
Now fully integrated, the acquisitions made last year have complemented organic
growth. Our net loan book has increased by #7.4m, or 75 per cent, to #17.4m.
Bad debt ratios continue to improve as we move closer to the industry average.
On 18 November we announced the purchase of a #3.5m loan book in the North East
and North West of England from Mirfield Financial Services for #2.3m. This
acquisition adds 9,000 borrowers to a growing customer base.
Marketing Services
In marketing services, Link Brand Solutions Limited produced an improved result
as the restructuring and repositioning of this business began to take effect.
Turnover rose by #0.9m to #2.5m and the operating loss was cut to #0.1m from
#0.3m. However, a loss of business at our call centre Consus Contact Management
Limited in the second half of last year had an adverse impact on this year's
first half result. Turnover in the six months fell to #1.6m from #5.0m a year
earlier and the business reported a loss for the period of #1.0m against a
profit of #0.1m.
Cash and Interest
The larger order book achieved by our cash savings business produced a 13 per
cent increase in cash balances at the half year to #69.7m, despite continued
investment in our home collected credit loan book. Interest receipts were
marginally down at #0.6m, reflecting lower average interest rates than a year
ago.
Looking Ahead
The cash savings and cash lending divisions continue to enjoy healthy growth as
we expand both our customer base and the range of products on offer. Strong
cash flow and a recession-resilient business model provide us with a stable
platform on which to build these two core activities. Their performance so far
in the current year has been such that I am confident of further progress for
the full year to next March.
Peter Johnson
Chairman
5 December 2003
RESULTS FOR THE HALF YEAR TO 30 SEPTEMBER 2003
Half Year Half Year Year to
to 30.09.03 to 30.09.02 31.03.03
#'000 #'000 #'000
Turnover
Continuing operations 26,765 23,497 192,876
Continuing operations - acquisitions - - 844
26,765 23,497 193,720
Operating (loss)/profit
Continuing operations (4,279) (3,408) 1,631
- before amortisation of goodwill (4,225) (3,384) 1,680
- amortisation of goodwill (54) (24) (49)
Acquisitions - (3) 180
- before amortisation of goodwill - - 208
- amortisation of goodwill - (3) (28)
(Loss)/profit on ordinary activities
before interest (4,279) (3,411) 1,811
Investment income 629 651 1,331
Interest payable - - (30)
(Loss)/profit on ordinary activities
before taxation (3,650) (2,760) 3,112
Taxation - - (1,007)
(Loss)/profit attributable to shareholders (3,650) (2,760) 2,105
Earnings per share - basic - - 1.30p
- diluted - - 1.27p
Dividend per share 0.325p 0.25p 0.75p
Cost of dividend #530,825 #406,290 #1,219,293
SEGMENTAL ANALYSIS FOR THE HALF YEAR TO 30 SEPTEMBER 2003
Half Year Half Year Year to
to 30.09.03 to 30.09.02 31.03.03
#'000 #'000 #'000
Turnover
Financial services - cash savings 17,058 13,560 172,591
Financial services - cash lending 5,669 3,323 8,077
Financial services - cash lending acquisitions - - 844
Marketing services 4,038 6,614 12,208
Sales to third parties 26,765 23,497 193,720
Operating (loss)/profit
Financial services - cash savings (3,013) (3,008) 2,222
- before amortisation of goodwill (2,988) (2,984) 2,271
- amortisation of goodwill (25) (24) (49)
Financial services - cash lending (129) (197) 140
- before amortisation of goodwill (100) (197) 140
- amortisation of goodwill (29) - -
Financial services - cash lending acquisitions - (3) 180
- before amortisation of goodwill - - 208
- amortisation of goodwill - (3) (28)
Marketing services (1,137) (203) (731)
(Loss)/profit on ordinary activities
before interest (4,279) (3,411) 1,811
GROUP BALANCE SHEETS
30.09.03 30.09.02 31.03.03
#'000 #'000 #'000
Fixed assets
Intangible assets 1,477 748 1,530
Tangible assets 9,494 9,972 10,220
Investments 2 2 2
10,973 10,722 11,752
Current assets
Stocks 6,141 4,925 1,768
Debtors - due within one year 28,731 22,594 22,020
- due in more than one year 50 276 50
Cash and bank balances 69,703 61,855 7,894
104,625 89,650 31,732
Creditors - amounts falling due within one year (123,748) (108,534) (47,994)
Net current liabilities (19,123) (18,884) (16,262)
Net liabilities (8,150) (8,162) (4,510)
Capital and reserves
Called up share capital 3,253 3,250 3,251
Share premium account 823 810 815
Profit and loss account (12,226) (12,222) (8,576)
Shareholders' deficits (8,150) (8,162) (4,510)
GROUP CASH FLOW STATEMENTS
Half Year Half Year Year to
to 30.09.03 to 30.09.02 31.03.03
#'000 #'000 #'000
Net cash inflow from operating activities 62,236 57,334 5,223
Returns from investments and servicing
of finance
Interest received 351 411 1,331
Interest paid - - (30)
Net cash inflow from investments and
servicing of finance 351 411 1,301
Corporation tax (paid)/recovered (282) 129 (443)
Capital expenditure and financial investment
Purchase of tangible fixed assets (421) (592) (1,619)
Sale of tangible fixed assets 321 116 192
Net cash outflow for capital expenditure (100) (476) (1,427)
Acquisitions and disposals - (700) (1,924)
Equity dividends paid (406) - -
Net cash inflow before financing 61,799 56,698 2,730
Financing
Issue of ordinary share capital 10 1 7
Increase in cash 61,809 56,699 2,737
Notes
(1) As in previous years, the board considers it misleading, in the light of
results expectations for the full year, to include in the half-year statement
notional tax credit and earnings per share information.
(2) The results are not the company's statutory accounts, a copy of which
for the year ended 31 March 2003 has been delivered to the Registrar. The
unqualified audit report on those accounts contained no statement under Section
237 of the Companies Act, 1985.
(3) This statement was approved by the board on 5 December 2003.
(4) A copy of this announcement will be mailed to shareholders on 8
December 2003 and copies will be available for members of the public at the
company's registered office - Valley Road, Birkenhead, Merseyside CH41 7ED and
also at the offices of the company's registrars, Computershare Services plc,
P.O. Box 82, The Pavilions, Bridgwater Road, Bristol BS99 7NH.
Independent Review Report by KPMG Audit Plc to Park Group plc
Introduction
We have been instructed by the company to review the financial information for
the six months ended 30 September 2003 which comprises a profit and loss
account, balance sheet and cash flow statement. We have read the other
information contained in the interim report and considered whether it contains
any apparent misstatements or material inconsistencies with the financial
information.
Directors' responsibilities
The interim report, including the financial information contained therein, is
the responsibility of, and has been approved by, the directors. The directors
are responsible for preparing the interim report in accordance with the Listing
Rules of the Financial Services Authority which require that the accounting
policies and presentation applied to the interim figures should be consistent
with those applied in preparing the preceding annual accounts except where any
changes, and the reasons for them, are disclosed.
Review work performed
We conducted our review in accordance with guidance contained in Bulletin 1999/4
issued by the Auditing Practices Board for use in the United Kingdom. A review
consists principally of making enquiries of group management and applying
analytical procedures to the financial information and underlying financial data
and based thereon, assessing whether the accounting policies and presentation
have been consistently applied unless otherwise disclosed. A review excludes
audit procedures such as tests of controls and verification of assets,
liabilities and transactions. It is substantially less in scope than an audit
performed in accordance with United Kingdom Auditing Standards and therefore
provides a lower level of assurance than an audit. Accordingly, we do not
express an audit opinion on the financial information.
Review conclusion
On the basis of our review we are not aware of any material modifications that
should be made to the financial information as presented for the six months
ended 30 September 2003.
KPMG Audit Plc
Chartered Accountants
Liverpool
5 December 2003
This information is provided by RNS
The company news service from the London Stock Exchange
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