Results Presentation. For the year ended 31 March 2015

Transcription

1 Results Presentation For the year ended 31 March 2015

2 Results Presentation June About us Park Group plc is the UK s leading multi-retailer gift voucher and prepaid gift card business focussed on the corporate and consumer markets. Sales are generated via e-commerce, our direct sales force and agents.

3 Results Presentation June How we serve our customers RETAIL PARTNERS Products and Services Vouchers and cards 359m Other products 14m ( m) ( m) Channels Consumer B2C Online Corporate B2B 146 High street retailers 20,000+ Retail outlets c 2 million Consumers Circa 2 MILLION CONSUMERS

4 Results Presentation June Financial highlights Billings increased by 11% to 372.9m ( m) Operating Profit increased 24% to 9.7m ( m) Finance Income down 21% to 1.2m ( m) Profit Before Tax increased 16% to 10.9m ( m) Dividend for year raised 4% to 2.40p ( p) Total Cash Balances peaked at 189m ( m) Group Billings ( m) /11 11/12 12/13 13/14 14/15 Profit before taxation ( m) /11 11/12 12/13 13/14 14/15 Operating Profit ( m) /11 11/12 12/13 13/14 14/15 Dividend per Share /11 11/12 12/13 13/14 14/15

5 Results Presentation June Leading brand positions in key markets UK s No.1 multiretailer gift voucher/card UK s No.1 Christmas savings business UK s No.1 corporate incentive provider UK s No.1 online gift voucher retailer Regulated e-money prepaid card launched in June 2010 Billings 322m ( m) Billings 193m ( m) Billings 155m ( m) Billings 21m ( m) Value Loaded 90m ( m) Note: there is some overlap of billings across the above areas

6 Results Presentation June Corporate Park sells its own brand vouchers and prepaid cards as well as individual store vouchers to corporate customers, who use them for incentive schemes and sale to consumers Billings increased 14% to 176m (2014: 154m) Operating profit increased 32.6% to 6.5m (2014: 4.9m) Customer numbers up 10% Sales to existing customers up 11% to 143m New business up 62% to 13m Digital delivery proving popular, up 66% to 6.7m New products increasing range and capability Voucher market grew by 8% in 2014 (UKGCVA) Volumes in Europe growing

7 Results Presentation June Corporate Developments Engage flexecash primary reward

8 Results Presentation June Consumer Operating profit increased 10.9% to 5.9m (2014: 5.4m) Billings up 8.4% to 197m (2014: 181m) Average customer order up at 463 (2014: 440) Christmas billings up 8.6% in UK Product range extended, improving proposition Improved customer retention Increased use of internet, 86% of new orders Scotland 10.8% Overall, 64% of orders placed via web up from 61% Order book well ahead for Christmas 2015 N. Ireland 1.6% North West 24.7% North East & Yorkshire 21.9% Midlands Wales 10.1% 12.7% South Central & West 9.6% Anglia 4.6% South East 2.8% London 1.0%

9 Results Presentation June Online business Continues to drive growth Vouchers, cards and e-codes sold direct to the customer Offers 24 hour convenience and flexibility Online portal billings up 28% to 21.5m (2014: 16.9m) E-commerce drives Christmas Savings and corporate business Total online order value 164m (2014: 131m) Fast growing, higher margin business with low cost base Serves corporate and consumer customers Increasing levels of repeat business, 36% vs 30% last year

10 Results Presentation June Results summary ( m) Billings Revenue Operating profit Interest Profit before tax Tax (2.4) (2.1) Profit after tax Earnings per share (basic) 4.66p 4.16p

11 Results Presentation June Revenue analysis ( m) Customer Billings 2015 Restated* 2014 Consumer Corporate Revenue Restated* 2014 Consumer Corporate *Restated following transfer or our online business highstreetvouchers.com from our consumer business to our corporate business at the beginning of the period under review.

12 Results Presentation June Results summary ( m) Operating profit 2015 Restated* 2014 Consumer Corporate Central and property costs (2.7) (2.4) Operating profit Interest income Profit before tax *Restated following transfer or our online business highstreetvouchers.com from our consumer business to our corporate business at the beginning of the period under review.

13 Results Presentation June Balance sheet ( m) Non-current assets Current assets Monies held in trust Cash and deposits Total assets Current liabilities (118.2) (100.8) Non-current liabilities (2.9) (1.5) Net liabilities (0.2) (4.1) Share capital Share premium Retained earnings (10.0) (13.9) Total shareholders equity (0.2) (4.1)

14 Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar m Results Presentation June Cash graph /16 Actual 14/15 Actual 13/14 Actual

15 Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar m Results Presentation June Year cash comparison m High 14/ m 09/ m /15 Actual 09/10 Actual m Low 14/ m 09/ m 0

16 Results Presentation June Cash flow ( m) Net cash from operations Interest received Tax paid (2.1) (2.1) Net cash generated from operating activities Purchase of intangible assets (0.2) (0.6) Purchase of property plant and equipment (0.4) (0.4) Net proceeds from shares issued Dividends paid (4.2) (3.7) Net increase in cash Opening cash Closing cash Deposits Trust cash Total Group

17 Results Presentation June Growth drivers Corporate Expanding economy delivering growth opportunities Customers at record levels Serving 5 billion market Voucher and gift card market growth of 8% Schemes are tailored to match customer requirements New products driving growth Consumer Strong customer loyalty Buoyant demand products and economy Over 400,000 customers broad demographics Further development of online functionality Targeted use of TV and web advertising Prepaid card products delivering incremental sales

18 Results Presentation June Outlook...encouraged by the strength of our order books Current year building on last year s growth Benefits of improving economy coming through strongly Corporate successfully broadening customer base Consumer strong order book across all sectors Innovation delivering exciting new products Strong finances and cash flow Well positioned for continued positive performance

19 Results Presentation June Appendices

20 Results Presentation June Board of Directors Peter Johnson Non-Executive Chairman Is the company s founder and has the role of nonexecutive chairman and per cent shareholder. Gary Woods Managing Director - Cash Savings Was appointed to the board on 29 March He joined the group with the acquisition of Chrisco Hampers in 1980 and has gained wide experience in divisional roles. He is managing director of Park Retail Limited. John Dembitz Non- Executive Director (Nomination Committee Chairman) Was appointed to the board as a non-executive director on 8 May 2008 and is the group's senior independent director. He is currently chairman of Pelican Rouge, Incredibull, Lee Baron & EAC Management and a non-executive director of National Association of Pension Funds and Winmark Global. Mr Dembitz is chairman of the nomination committee and a member of the audit and remuneration committees. Chris Houghton Chief Executive Officer Was appointed to the board on 11 October 2000 and became chief executive officer on 11 April He is a Fellow of the Chartered Institute of Management Accountants and joined the group as group accountant in He became group finance director on 29 March 2001 and up to his appointment as chief executive officer was previously group managing director. Laura Carstensen Non-Executive Director (Audit Committee Chairman) Was appointed to the board as a non-executive director on 23 September She is a former partner in City law firm Slaughter and May and a former Member and Deputy Chairman of the UK Competition Commission (now the Competition and Markets Authority). She is a non-executive director and chair of the Values & Ethics Committee of The Co-operative Bank plc and a non-executive director of MLex Limited. She holds two Ministerial appointments, as a Commissioner of the Equality & Human Rights Commission and as a Trustee of National Museums Liverpool. She was educated at Withington Girls School in Manchester and read English at St Hilda's College, Oxford. Mrs Carstensen is chairman of the group s audit committee and a member of the remuneration and nomination committees.ination committees. Martin Stewart Group Finance Director Was appointed to the board on 1 November 2004 and is the group finance director. He is a Fellow of the Institute of Chartered Accountants in England and Wales and joined the group from Eddie Stobart Group PLC, where he was group finance director. Prior to this he was with UK Waste Management Limited from 1992 to 2000, from 1997 as group finance director, and earlier in his career held financial positions with The Littlewoods Organisation, ICI PLC and Price Waterhouse. Michael de Kare-Silver Non-Executive Director (Remuneration Committee Chairman) Was appointed to the board as a non-executive director on 23 September He is an advisor to the digital, e-commerce and mobile communications sectors. He is also Chairman of Coats plc Global Services. He has previously served as a main board director at a number of companies including FTSE 100 GUS plc and FTSE 250 Thus Group plc. He headed up Argos.co.uk, Experian.com and Burberry online as CEO of GUSco.com and founded successful start-ups born2learn.com and MyFaveShop.com. Mr de Kare-Silver was Chairman at WIN plc and Breeze Tech Mobile. Early in his career he gained valuable experience at both Procter & Gamble and McKinsey & Company. Mr de Kare-Silver is chairman of the group s remuneration committee and a member of the audit and nomination committees.

21 Results Presentation June Revenue and billings...the growing and widening numerical divergence between revenue & billings highlights the positive impact of the prepaid card Revenue from prepaid cards is recorded differently to revenue from paper vouchers Revenue from prepaid cards is the margin earned based on customer billings It is only recognised when the value loaded on the cards is redeemed Billings reflects the effect of the flexecash prepaid card Impact of this policy: Reduces revenue reported No effect on profit, but Delays recognition

22 Results Presentation June Revenue and billing recognition Timings of revenue recognition Gross versus net presentation Recognition of nonredemption income Paper vouchers On despatch (no change) Gross (no change) On despatch (no change) flexecash card (prepaid) On redemption Net On despatch where no right of redemption Where there is a right of redemption: E-Money1: Up to 2 years or when card expires E-Money2: Up to 6 years after card expiry

23 Results Presentation June Disclaimer The information contained in these slides has been prepared by the directors of Park Group plc ( Park Group") for information purposes only and the information in these slides and the presentation made to you verbally is subject to updating, completion, revision, further verification and amendment without notice. These slides have not been approved by any financial regulatory authority nor is it intended that they are so approved. These slides and the presentation do not constitute any part of any offer for sale or solicitation of any offer to buy or subscribe for any securities nor shall they or any part of them form the basis of or be relied on in connection with, or act as any inducement to enter into, any contract or commitment whatsoever. No undertaking, representation, warranty or other assurance, express or implied, is made or given by or on behalf of Park Group or any of its directors, officers, partners, employees, agents or advisers or any other person as to the accuracy or completeness of the information or opinions contained in these slides or the presentation and no responsibility or liability is accepted by any of them for any such information or opinions or for any errors, omissions, misstatements, negligence or otherwise for any other communication written or otherwise. These slides are confidential and are being supplied to you solely for your information and may not be reproduced, re-distributed or passed to any other person or published in whole or in part for any purpose. Certain statements included herein express Park Group s expectations or estimates of future performance, constitute "Forward-looking Statements". Forward-looking Statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by Park Group are inherently subject to significant business, economic and competitive uncertainties and contingencies. Such Forward-looking Statements involve known and unknown risks, uncertainties and other factors that may cause the actual financial results, performance or achievements to be materially different from estimated future results, performance or achievements expressed or implied by those Forward-looking Statements and as such the Forward-looking Statements are not guarantees of future performance. Park Group expressly disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, events or otherwise. By accepting this presentation you agree to be bound by the foregoing provisions.