Usual situation, winning. The company is debt-free - at the year-end, anyhow. Having said that, personally I might sell some because I want to buy some LLOY where the divi should be better next year. I'd be selling some I bought at 15.5p.
The Company states 'Cash Balances peaked at £229m' which at
first glance looks very good indeed. But how meaningful are the
exciting high 'cash balances' when combined with Trade Receivables
their figure is exceeded by the combined £-amount for Trade Payables
and Taxes due? Any opinions please?
Merseyside-based Park Group, the gift voucher and prepaid gift card business, is predicting the Christmas season will project it into profit.
The Birkenhead company traditionally makes a first-half loss ahead of the festive period and interim results for the six months to September 30 have continued that trend with a pre-tax minus of £1.6m compared to £0.8m for the same period in 2016.
However, more than £13m of orders have already for placed for Christmas 2018 through the companys mobile app, prompting the listed firm to forecast a bright future.
Some 31 client businesses are also using its Love2shop Worldwide offering to incentivise and reward their staff and customers across a number of different countries including the UK, Ireland, Italy, India, Australia and USA.
Non-executive chairman Laura Carstensen said: The performance of the first half is being maintained across our corporate and consumer businesses, with trading continuing in line with the boards expectations.
Our operations are expanding as we capitalise on the opportunities generated by ongoing enhancement of our product ranges, enabling us to grow our customer base, while also reaching new markets and territories.
Chief executive Chris Houghton highlighted the £13m of advance orders for Christmas 2018, placed by about 40,000 of the companys customers.
He told TheBusinessDesk, the much-much-talked-about squeeze on incomes across the UK was not affecting the company adversely.
Weve always been pretty recession resilient, he said; Our average orders have grown more than inflation and we always tend to do reasonably well through tight periods.
He said the half-year figures had been affected by customer requests for early dispatches of goods, which means Park has to buy them earlier.
On the face of it, a good appointment - until you start looking at MBNA's history. I just hope that (Mr) John (call me Ian) O'Doherty doesn't bring any dodgy practices to Park Group; if he does, small shareholders, at least, will sell.
"MBNA was one of the companies mentioned on a 2004 Frontline WGBH Boston PBS special about unfair business practices by credit card companies. Some practices that Frontline claimed MBNA has engaged in included doubling or tripling of interest rates, shifting billing due dates/payment cycles monthly and raising rates for customers whose payments were a day or two late. MBNA has been found to be one of the leading implementors of rate-jacking.
In Ireland, MBNA was accused of calling consumers up to eight times a day who were behind in making payments, which prompted the state debt advisory service to publicly state that harassment is outlawed. Affected people were advised to complain to the relevant authorities. The company in December 2009 admitted overcharging 500,000 Irish consumers up to 18 million.
In the UK, MBNA has come under fire for its interpretation of rules under which credit card providers must allocate payments to the debt with the highest interest rate first: one consumer site called MBNA's interpretation of these rules a "disingenuous money-making tactic""
I am on the look out for long term steady performers
which are not on a frothy PE-ratio and which pay a decent
dividend. Park Group appears to fit those qualities, I bought
some today at 79p. for long term hold.
Corporate side continuing to do very well, but Consumer suffered from lower product margins, wharehousing and printer ink! Sounds extraordinary but I recall reading somewhere that there was a shortage of whatever was needed to produce ink. Still, billings ahead.
There might have been some nerves over CH leaving, but he'll be here for at least another 12 months. The results were also below expectations.
Cash generative, still growing and no PF deficit make this a HOLD for me. Bought them at 19.5 and 15.5p, and I see no reason to bail out.
Consumer appears to be growing less fast than last year. Corporate apparently growing but no real detail.
Cash position very good; although we really need a bit of a lift in interest rates, don't we.
I do often wonder if Park's day has passed, but it still keeps chugging along. Didn't it ditch the hamper side of the biz? Maybe that should be revived: with folk too busy to go shopping for pressies, sending a posh hamper could be quite popular.
"FY16 earnings growth of 12% is in line with expectations as 15% profit growth within the Consumer division and a lower tax rate offset the Corporate headwind from the loss of consumer credit sector revenues. This headwind is now through the system and whilst we have fine-tuned our FY17 forecasts the group will progressively benefit from the underlying growth being generated from other areas of the Corporate business and sustained momentum in Consumer, where the group has good visibility over the Christmas 2016 outcome."
Read Edisons note on Park Group (PKG), out this morning, by visiting www.research-tree.com
Park has issued a trading update ahead of the release of preliminary results for the year just ended (31 March 2016) on 7 June 2016. Trading ahead of Christmas continued the strong trend of prior periods and management says that it expects the FY16 results to be broadly in line with market expectations. It describes the early order indications for FY17 as encouraging, although there are some signs that general macro headwinds have increased. We have very modestly reduced our earnings estimates, which we believe were slightly ahead of consensus
Chugging along as usual, except for the consumer credit biz. This from the previous results:-
"Sales to a major customer in the credit sector have declined significantly over the past two years and it is a sign of the underlying strength of our business that, if the credit sector was excluded from these results, billings would have risen by 22 per cent compared with the previous year."
Might see a fall back today, I dunno. Sticking with it, anyway.
Just bought, can see a support it may have just bounced off at 80.
Very seasonal business but outlook seems good for this year and market had all yesterday to decide if Interims were bad. This downward lurch is just a "flush out" before uptrend resumption with any luck.
Just pondering the share price performance: it's been racing ahead these last few months, and while there was certainly an uplift following the results, I'm quite surprised at the more recent rise.
Peter Johnson is about 75, holds some 16% of the shares and wanted to flog the company some 10 years or so ago. He's obviously not short of a few bob, and I've got no idea of his personal circumstances; so I'm just speculating that there might be a spot of corporate action afoot.
Just wanted to share my thoughts to help others with their own research and for debate purposes:
I've been doing some research on this share recently, having been alerted to it by a number of sources including the investor John Lee whose investment approach I like. The Edison research note on this website in the summary section is also very helpful.
I like the fact that this share offers steady growth and a decent dividend yield. It has a good cash balance and its business is easier to understand than most although I haven't ever used their products and I think some of their websites look a bit dated.
However, for me the share price is perhaps a tiny bit overpriced. Edison's target price of 66p for 2016 assumes decent but achievable levels of growth and a P/E of 13. I think I will keep an eye on the share but wait for a dip even if this means missing out on the forthcoming final dividend.
OFF TOPIC but important that all AIM investors understand the pitfalls of investing in stocks that are being shorted down to rock-bottom levels? So you think that is 'cute', now you can buy at the lowest sp for months.........you've gotta be kidding...read on:-
UPdate...epitition (closes 24th September 2014, so still plenty of time to get those votes in)
A lot of irate investors ... are voting for this campaign...?
Thanks to all those that have supported this HMGovt epetition !
~~~~~ *3,851 voted so far~~~~~(That's a lot of irate investors?)
AND THEY CAN'T ALL BE WRONG ?
HMGovt epitition to make short-selling illegal (or better regulated?)
Well I confess to not understanding how much profit we're going to get from corporate as it develops.
Cash position is strong and investment in IT a positive. Corporate could be a real winner - or just an extra to the Consumer. Whatever, the basic Christmas savings business supports the Company. All depends on how carefully they grow the Company on the back of the increasing cash. So far, they've done well enough.
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