Hamper firm Park predicts a happier Christmas

By DAILY MAIL REPORTER
Updated: 04:27 EST, 11 June 2009

Christmas savings firm Park today said it was 'holding up well' against a bleak economic climate despite orders for this year's festive season edging lower.

Birkenhead-based Park has taken orders from 416,000 customers for Christmas so far - 4 per cent down on the same stage last year - although the average value is around 3 per cent higher.

Pre-tax profits rose from £5million to £6.2million in the year to March 31, but Park is also being hit by the impact of record low interest rates on the cash balances it holds from customers.

The company, which was founded in 1967 as a Christmas hamper supplier, said trading was 'broadly at the same level' as a year ago.

Christmas hamper group Park claims to be holding strong despite the recession.

It also reported higher sales of its corporate vouchers, which are mainly used by companies as part of incentive and reward schemes.

Park, whose major clients include retailers such as Marks & Spencer and John Lewis, grew corporate voucher sales by 4 per cent last year.

Most of the sales from the firm's Christmas savings business now come through vouchers, although high-margin hampers still contribute to overall results.

The company said: 'The Park product ranges...offer low risk and discretionary alternatives to cash, which we know from many years experience are attractive to customers during times of economic uncertainty.'

The group is facing economic headwinds little more than two years after the Christmas savings industry was hit by the collapse of Farepak in 2006.

This left 150,000 savers around £40million out of pocket - dealing a serious blow to confidence in the sector.

Park, which has 300 staff and no bank debts, said it was 'recovering well' from the Farepak setback.

Since August 2007 it has placed customer pre-payments in a separate trust account away from the group's own funds.

Revenues from continuing operations were up 11 per cent to £250.5million over the period, while the company also cheered shareholders with a 10 per cent hike in the annual dividend.