Half Yearly Report

('Park' or 'the Company')

18 December 2012

Park Group is the UK's leading multi-redemption voucher and prepaid card business focussed on the corporate and consumer markets. Park's business is generally seasonal and the first half of the year is traditionally loss making with the bulk of annual revenues generated in the second half.

Peter Johnson, non-executive chairman, commented:

"The strong performance of the first half is being maintained across the company with orders well ahead of the equivalent period last year. The innovation, drive and enthusiasm within Park is delivering exciting new products and applications, none more so than flexecash®, which is taking the company into product and customer areas which were previously closed to us. The combination of technological advances and marketing initiatives, together with the bedrock of our traditional business, gives us real confidence in the continued growth of Park."

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CHAIRMAN'S INTERIM STATEMENT

I am pleased to report that Park has delivered another set of excellent first half results with strong performances across the company in the six months to 30 September 2012. With product innovation at the heart of our business, these results demonstrate both the effectiveness of our offer and also our success in using technology to provide the highest levels of service and support to our growing customer base.

Whilst the economic background remains challenging for most sectors, it is particularly encouraging that Park has maintained its growth record over the past few difficult years. We continue to work very closely with our customers, encouraging feedback, to ensure that value and service are at the forefront of our offering. It is this close relationship which has contributed significantly to the strength of our business.

Trading results

Park is a seasonal business which is usually loss making in the first half, as over three quarters of our revenue is generated in the second half of the year. Nevertheless the first half performance is important as it lays the foundation for the full year's result as orders are secured during the period; but not despatched and invoiced until the second half.

In the six months to 30 September 2012 customer billings increased by 12.4 per cent reaching £54.6m (2011 - £48.6m) while revenue rose 1.9 per cent to £46.9m (2011 - £46.0m). Billings are higher than revenue as a result of the accounting treatment of our very successful flexecash® prepaid card, launched in June 2010. Revenue from the flexecash® family of products is the margin on customer billings, predominantly recognised after the value loaded on the card has been redeemed. This accounting treatment does not affect the level of margin contribution or profit, but does delay when it is recognised in our accounts.

The operating loss for the period before finance income was £5.2m (2011 - loss £5.2m) while at the pre-tax level the loss improved to £4.1m (2011 - loss £4.4m). Finance income increased by 27.5 per cent to £1.1m (2011 - £0.8m). Cash held in trust at the period end was £132.6m (2011 - £119.5m) with total cash balances peaking at £170m (2011 - £152m) during November.

Dividend

The interim dividend is being increased by 4.8 per cent to 0.55p per share (2011 - 0.525p per share) and will be paid on 8 April 2013 to shareholders on the register on 8 March 2013. Park's total dividend payment last year was 2.0p per share which included a final dividend of 1.475p per share.

Shareholding

In the statement accompanying the results for the last financial year, which we announced on 12 June 2012, I commented that the time had come for me to change my role from executive chairman to non-executive. Subsequently, on 17 October 2012, we reported that my beneficial interest in the ordinary share capital of the company had been reduced from 65.48 per cent to 29.95 per cent. These shares were placed with a number of leading institutional investors and four have each disclosed an interest in over five per cent of Park's ordinary share capital. This broadening of Park's investor base is positive for the company and has created greater liquidity in the shares, which should not only make it easier to deal in them but also help to attract new investors.

Operational review

The corporate business delivered another sound performance supplying vouchers and prepaid cards to thousands of customers across the UK. Billings in the period rose 10.5 per cent to £46.2m (2011 - £41.8m) while revenue was lower at £38.7m (2011 - £39.4m). The widening gap between billings and revenue reflects the success of the flexecash® range of products and the way we are required to recognise profit from this source in the accounts.

We continue to drive business through innovation and developing schemes to fit the needs of our broad customer base. The high street retail market in the UK remains volatile and shows little sign of sustained improvement. Clearly that places additional pressure on our management teams to deliver value and quality to customers and retail partners.

The consumer business with its range of savings products in the UK and Ireland also had a very good first half with billings rising by 24.1 per cent to £8.5m (2011 - £6.8m); revenues were ahead by a similar percentage reaching £8.3m (2011 - £6.7m). The second half is always very much stronger as customers' orders for vouchers, hampers or other gift products purchased through a 45 week instalment plan are despatched, with everything delivered in time for Christmas. The level of orders placed in the first half for delivery later in the year is five per cent ahead of the level of 12 months ago and indicates an encouraging outturn for the year as a whole. The number of UK agents trading for Christmas 2012 has increased to 122,000 from 114,000 last year and customer numbers have risen to 423,000 from 415,000. Average customer order values to date have increased to £430 from last year's level of £416.

The success of flexecash®, our prepaid card, is a very significant and fast growing influence on the future direction of Park. Customer acceptance of the product is high and we are launching it into new markets, specialist areas, or tailored to meet individual customer needs. The flexibility of the product is enormous; our development and marketing teams work with customers to devise and deliver new applications that allow them to access previously unavailable markets. flexecash® continues to have a transformational effect on Park's business.

The value loaded on to flexecash® cards this year is 140 per cent above the same time last year, demonstrating the exciting progress that is being made in the development of this product and the markets it serves. The total value loaded on to cards since launch is now over £140m. The majority of flexecash® business is incremental not substitutional, as demand for our more traditional products is holding up well. In August we announced that topcashback, one of the UK's leading consumer retail cashback sites, is to begin offering flexecash® cards to its 1.5m members, making it the first cashback website to offer Park's platform. This is another instance where Park has capitalised on a new business opportunity created by flexecash®.

Park's innovative and extensive use of technology continues apace and during the period the company achieved ISO 27001 accreditation. This very important and internationally recognised standard identifies those businesses that have developed best-in-class information security management systems. A further development has been in the area of mobile phone technology where we have launched a number of transactional sites to cater for increasing smart phone and tablet computer usage.

Our web-based gift voucher retailer, www.highstreetvouchers.com, has maintained its rapid growth with revenue rising by 24.2 per cent to £4.6m (2011 - £3.7m) in the period. Corporate customers are also ordering directly via the internet and in the first half £7.0m was processed, 37.0 per cent above last year's level. The overall impact of the internet is apparent across the company and we anticipate that over £100m of orders will be booked online in the current financial year.

Outlook

The strong performance of the first half is being maintained across the company with orders well ahead of the equivalent period last year. The innovation, drive and enthusiasm within Park is delivering exciting new products and applications, none more so than flexecash®, which is taking the company into product and customer areas which were previously closed to us. The combination of technological advances and marketing initiatives, together with the bedrock of our traditional business, gives us real confidence in the continued growth of Park.

Peter Johnson

Non-executive Chairman

18 December 2012

PARK GROUP PLC

UNAUDITED CONSOLIDATED INCOME STATEMENT

FOR THE HALF YEAR TO 30 SEPTEMBER 2012

All activities derive from continuing operations.

PARK GROUP PLC

UNAUDITED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

FOR THE HALF YEAR TO 30 SEPTEMBER 2012

PARK GROUP PLC

UNAUDITED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

AS AT 30 SEPTEMBER 2012

PARK GROUP PLC

UNAUDITED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

PARK GROUP PLC

UNAUDITED CONSOLIDATED STATEMENT OF CASH FLOWS

FOR THE HALF YEAR ENDED 30 SEPTEMBER 2012

PARK GROUP PLC

UNAUDITED SEGMENTAL REPORTING

FOR THE HALF YEAR TO 30 SEPTEMBER 2012

NOTES TO THE ACCOUNTS

(1) Basis of preparation

The financial information in this interim report has been prepared in accordance with the International Financial Reporting Standards as adopted by the EU and the AIM rules of the London Stock Exchange and on the basis of the accounting policies described in Park Group plc's annual report and accounts for the year ended 31 March 2012. These accounting policies have been based on the current standards and interpretations expected to be effective at 31 March 2013. The group does not expect there to be a significant impact on the results from standards, amendments or interpretations which are available for early adoption but which have not yet been adopted.

The financial statements have been prepared under the historical cost convention, as modified by the accounting for financial instruments at fair value. In addition this interim financial report does not comply with IAS34 Interim Financial Reporting, which is not currently required to be applied under AIM rules.

The directors are of the opinion that the financial information should be prepared on a going concern basis, in the light of current trading and the forecast positive cash balances for the foreseeable future.

The financial information included in this interim financial report for the six months ended 30 September 2012 does not constitute statutory accounts as defined in section 434 of the Companies Act 2006 and is unaudited. A copy of the group's statutory accounts for the year ended 31 March 2012, on which the auditors gave an unqualified opinion and did not make a statement under section 498 of the Companies Act 2006, has been filed with the registrar of companies.

(2) Taxation

The taxation credit for the six months to 30 September 2012 has been calculated using an overall effective tax rate of 24.0 per cent which has been applied to the taxable income (half year to 30 September 2011 - 26.0 per cent).

(3) Earnings per share

Basic earnings per share (eps) is calculated by dividing the earnings attributable to ordinary shareholders by the weighted average number of ordinary shares outstanding during the period.

For diluted eps, the weighted average number of ordinary shares in issue is adjusted to assume conversion of all dilutive potential ordinary shares.

The calculation of basic and diluted eps is based on the following figures:

(4) Reconciliation of net (loss)/profit to net cash (outflow)/inflow from operating activities

(5) Restatement of prior period figures

As detailed in the financial statements for the year to 31 March 2012, the Government's change in the statutory indexation measure in respect of index-linked retirement benefits to CPI rather than RPI, led to a prior period adjustment in the financial statements to 31 March 2011 to reflect this change. This adjustment is also reflected in these interim statements in the prior period statement of financial position.

(6) Approval

This statement was approved by the board on 17 December 2012.

(7) Reports

A copy of this announcement will be available on the Company's website from today www.parkgroup.co.uk and will be mailed to shareholders on 7 January 2013. Copies will also be available for members of the public at the company's registered office - Valley Road, Birkenhead CH41 7ED and also at the offices of the company's registrars, Computershare Investor Services PLC, P O Box 82, The Pavilions, Bridgwater Road, Bristol BS99 7NH.