Xmas savers put more aside with Park

By This Is Money
Updated: 06:24 EDT, 9 December 2010

Christmas savings firm Park Group has seen a jump in thrifty people hoarding money for the coming festive season.

Xmas savings: People are anxious to have enough money to celebrate this year

Its Christmas savings pot is up by 37% to £5.8m this year. Customer numbers increased to 410,000 from 400,000 and the average amount saved rose 6.9% to £401.

The company, which also sells vouchers to businesses, said revenues were up by 49% to £50.9m in the six months to September 30.

It normally makes a loss in the first half of the year, but made £1m pre-tax profits in the period as a result of its improved performance and a VAT rebate.

Park's shares rose 1p to 31p in morning trading.

Managing director Chris Houghton said the company was already taking orders for Christmas in 2011 and expected to benefit from the Government's spending cuts, which would encourage more consumers to save with Park.

'Our business has always done well in austere times as people prepare for an expensive time of year,' he said.

'Credit is harder to get and is expensive and there's more general prudence as people want to avoid getting into debt.'

Park, which advertises on television, encourages consumers to put away regular savings for Christmas and guarantees a minimum of 1% interest.

Trading at Park, based in Birkenhead, Liverpool, was hit when rival Christmas savings scheme Farepak went into administration in 2006, leaving 150,000 savers around £40m out of pocket and dealing a serious blow to confidence in the sector.

But Mr Houghton said Park has robust measures in place to ensure savings are safe.

Since the end of the half year, Park has completed the acquisition of Dublin-based Celtic Hampers and Family Hampers for up to €1m in cash, depending on the business meeting performance targets.

Celtic does not currently offer vouchers, which Park now plans to launch in the Republic of Ireland.

Park said it did not expect the current turbulence in the Irish economy to affect Celtic's prospects.