Park Group MD delivers a Merry Christmas

Dec 10 2008 by Alistair Houghton, Liverpool Daily Post

Alistair Houghton meets CHRIS HOUGHTON, Park Group managing director

CHRISTOPHER HOUGHTON doesn’t like to hear the F-word used around the office. The Park Group managing director says the sound of it makes him flinch.

The Birkenhead-based Christmas savings specialist Park last week reported strong half-year results and said sales for next year were already looking strong, reflecting a strong recovery from the collapse of Christmas savings rival Farepak two years ago, an event that was disastrous for the industry.

The collapse of Farepak is a problem which understandably annoys Houghton and the Park team, because not only is Park a strong business with no bank debts, but the company has been at the forefront of measures to restore confidence in the Christmas savings sector.

In the six months to September 30, its loss was reduced to £3.2m, compared to £3.9m in 2008. Park generally reports a loss in its first half as most of its sales come in the second half.

Orders for this Christmas were 15% up on last year, while revenues in its corporate incentive voucher business rose 10% and online revenues more than doubled. Park lifted its interim dividend 10% to 44p.

Park, says Houghton, is primed for still more growth as prudent shoppers in cash-strapped times look to savings clubs as an alternative to expensive and hard-to-obtain bank credit.

So it is unsurprising that Houghton dismisses any mention of Farepak with the wave of a hand.

“We’ve put them behind us,” he said. “It was a very difficult period of time and we don’t like to talk about them. They’re dead and gone.”

Park was founded in 1967 by Tranmere Rovers owner Peter Johnson, who still comes to work at Park every day in his role as chairman, and remains one of the region’s best-known businessmen. The group employs 250 people in Birkenhead, rising to 350 at peak periods.

Park began diversifying from hampers in the 1970s when it created vouchers that customers could redeem for turkeys at Dewhursts. It later teamed up with Woolworths for another voucher scheme, at which point Johnson decided to create a universal voucher. Mention Park Group and most people still think of Christmas hampers – even though they now account for just 5% of Park’s turnover.

Around 90% of sales at its Christmas savings business come from vouchers, whether the company’s own Love2shop range or those issued by High Street stores such as Marks & Spencer and sold by Park.

Love2shop boasts retail partners from Matalan and TJ Hughes to Halfords, Debenhams and House of Fraser.

It is the largest “multi-redemption” voucher of its kind in the UK.

Customers save either through a network of agents or directly. They pay every week for 45 weeks, with the average order now standing at £374.