SAVINGS firm Park Group says its corporate voucher sales have risen this year, while its Christmas hamper business is “holding up well”, despite a sales fall.
The Birkenhead group, which held its annual general meeting yesterday, says trading is on track, even though its income is being hit by low interest rates.
Park founder and chairman Peter Johnson told the AGM that the company was performing strongly in the downturn.
He said: “Park is committed to generating shareholder value, and therefore I am pleased to report that, subject to the absence of unforeseen circumstances, we are well placed to deliver another sound trading performance and to continue our current policy of paying attractive dividends.”
Mr Johnson said that, though Christmas sales had fallen since last year, the company remained positive as it had recruited more agents to sell its products.
He said: “The Christmas savings business is holding up well, despite the challenging market conditions, as customers deal with the financial pressures imposed by the recession.
“This is a long-established operation with a large and loyal customer base that appreciates the simplicity of saving each week for Christmas with Park’s instalment plan.
“Orders are currently around 6% below last year, which is a creditable result, given the current economic environment. The number of agents, however, has increased by 6% over last year, which is positive for the future.”
Mr Johnson said Park’s corporate voucher business, which generates 60% of the group’s operating profit, was making “good progress”.
He said: “Sales are some 8% ahead of the same period last year, boosted by a significant amount of new business.
“In addition, a number of major new contracts have been secured which will commence later in the year. Overall, new business is up by 30% year on year.”
Park’s online sales have risen 20% this year, and Mr Johnson said Park’s websites played “an increasingly vital and fast- growing role in our business”.
He said: “We are continuing to invest in Park’s online infrastructure to further improve customer service and operating efficiency, as both are essential components of our product offering.”
In June, Park said that in the 12 months to March 31, its revenues were up 11%, to £250.5m, while pre-tax profits rose 24%, to £6.2m.
