Companies: PKG   

In its 40th year, Peter Johnson’s Christmas savings company Park is thriving, shrugging off all the negatives following the collapse of rival Farepak.

Park even donated £1m of high street gift vouchers to the DTI’s Family Fund charity - which eventually raised £6.8m - and even though it has no borrowings and good visibility on cash, has reassured the market by ring-fencing customers’ payments.

Half-time figures to September revealed losses of £4.9m in the traditionally loss-making half, with the bulk of its festive turnover arising in the latter half of the financial year. Auguring well for the full-year outcome was the 42% turnover growth to £34.8m, an improved dividend of 0.4p (0.36p) and stellar cash flows taking half-time balances 59% north to more than £120m.

Major shareholder Johnson, the former chairman of Everton Football Club and owner of Tranmere Rovers, reported strong growth in the Agency Christmas order book, which he says will drive this season’s sales to £210m, £43m ahead of last year. Within the core ‘cash savings’ division, sales sparked up 33.6% to £31.4m, with Christmas orders in the Park and Country brands almost 10% up on 2005, and February’s acquisition of Family Hampers boosting orders.

Johnson flagged up rising internet usage, with more than 25% of customers trading with Park online versus 9% the previous year, and heralded a pleasing performance from corporate vouchers, where sales spiralled 35% higher to £29m.

Following the disposal of the home-collected credit business this summer, the cash-lending division consists solely of small loan book and loan broking business Imagine Finance, where a bout of imminent restructuring should improve efficiencies. Farepak tarnished the sub-sector, but investors have nothing to fear here, with handsome profits shaping up for the year. Hold.

Park Group	AIM	£22.7m	13.75p	-0.75p
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