The UK’s leading multi-redemption voucher and prepaid gift card business

AGM Statement

20 September 2011

At the Company's Annual General Meeting held on 20 September 2011, Peter Johnson, Chairman of Park Group plc, made the following statement:

"I am pleased to report that the significant progress made last year has continued into the early part of this financial year and early indications are positive across all our key areas of operation.

"In the Results Statement on 14 June, I commented that the Company had been undergoing a steady transformation over the past few years as we capitalise on the market leadership of our traditional businesses and harness the power of the internet.  That progress has been maintained as we continue to invest in the future during a period of general economic uncertainty and difficult trading conditions for many companies.

We launched flexecash® our prepaid card in June 2010 after three years of development and investment,  this product is now delivering many exciting market opportunities in both of our business divisions.  Park has now issued 320,000 flexecash® cards with a total value of £22 million and we have sold flexecash® cards to over 430 corporate customers. In addition, orders from Christmas savings customers for flexecash® prepaid cards are 120% ahead of the same time last year.

"Using the prepaid card product we have launched flexesaver®, a new employee based Christmas savings scheme and flexebens®, a prepaid card product for the flexible benefits market.  These initiatives also utilise our extensive web capability.

"During recent months we have developed mobile telephone applications that enable us to communicate with and to support our customers using our vouchers and prepaid cards.  The first of these will be launched this month.

"Christmas savings orders are currently some five per cent above the level of twelve months ago. Our customers save with Park as it brings control and discipline into their financial preparation for Christmas and is particularly useful in the current difficult economic environment.

"Orders from our Irish customers are in line with expectations and the introduction of our euro Love2shop voucher has been successful, with 24 retailers including many Irish retail brands now accepting the voucher.  Additionally, we have also now launched the voucher into the corporate market in Ireland.

"Park is a seasonal business and the first half of the year, although always extremely busy and important in terms of securing orders, is usually loss making as some 80% of sales are not dispatched and invoiced until the second half.  The next three months will be the busiest period of the year and the board is pleased with the progress that has been made so far.  We look forward with confidence.