BIRKENHEAD-BASED Park Group has been boosted by employers seeking incentives for staff as wage rises tighten during the recession.
Sales of its rewards vouchers rose by 4.2% to £85m, making it the largest multi-redemption voucher provider in the UK, working with stores like John Lewis and Marks & Spencer.
Park managing director Chris Houghton said: “Corporate vouchers are doing well.
“We are finding a lot of new business coming as a result of incentivisation.”
The vouchers to Christmas hamper group reported a year of progress, in the 12 months to March 31.
Revenues were up 11% to £250.5m and pre-tax profits rose 24% to £6.2m.
Shareholders will receive a 10% boost on the total dividend of 1.32p per share from the Alternative Investment Market-listed company.
Chairman Peter Johnson revealed 8% growth in the company’s traditional Christmas Hampers business with a 5% increase on average orders of £374 from Park’s 432,000 customers.
Orders for the coming year are encouraging with 119,000 agents – 16,000 more than last year – placing orders on behalf of 416,000 customers with average orders currently ahead by 3%.
Mr Johnson said: “It is over 40 years since Park was founded and it is pleasing and reassuring to note that, over the years, irrespective of economic circumstances, our customer base has remained solid and loyal.”
He also revealed that the group has no borrowings and its cash balance of more than £124m is £28m better than last year.
Investment in the internet has been rewarded with a 161% surge in online sales to £6m, although Mr Houghton said the web would never replace sales agents.
“We have been doing a lot of work on the website.
“It makes us more efficient, but it would not replace agents, it just makes it more easy for people who want to deal with us and is just another route to market,” he said.
He added the traditional Christmas hampers business which allows customers to save over 45 weeks is still popular with consumers – even more so in today’s uncertain economic conditions.
“The economy makes people a bit nervous and a bit less sure of the future, with redundancies around.”
