Park warns profits will be 'marginally' below expectations
Source - SMW
Gift voucher provider Park Group said it expected its annual profit to be 'marginally below' market expectations.
The current compiled analyst consensus forecasts was for a pre-tax profit for the year through March of £12.9m, on revenue of £112m.
The company said underlying trading was ahead of its expectations, despite an additional £0.5m of restructuring costs.
However, Park said particularly strong growth in its more profitable card business meant that the financial impact of new accounting standards were expected to be around £0.5m higher than previously anticipated.
That was because a greater proportion of profit would be deferred until the current year.
The company said it also expected to incur a £1.3m impairment charge related to its decision to move to new offices.
'The board anticipates the trends experienced in the year just ended will continue, with good growth in corporate business partially offset against a slower consumer Christmas savings market,' Park said.
Additional costs of £2.0m associated with implementing a strategic business plan havd also been identified, which would be incurred during the current financial year.
'The benefits of the changes are expected to accrue in subsequent financial years both in terms of directly enhancing profitability and in terms of positioning Park to continue developing and growing in its fast-moving sectors,' the company said.
'Overall, the Board therefore anticipates profitability will be lower in the current year before growth resumes thereafter.'