Findel sales up 10.2%
Home shopping group Findel grew its total sales grew by 10.2% in 16 weeks to 22 January, up from 7.7% in the eight weeks to 23 November.
For the year-to-date, group sales are 8.9% ahead of the previous year.
Express Gifts, Findel’s largest business, recorded its strongest Christmas sales performance for five years. In the 16 week period, sales increased by 13.3% compared to the same period in 2011, building on the 9.1% rise in the eight weeks to 23 November. In addition, the division has grown its number of active customers by 8% in the past 12 months.
Findel expects Express Gifts to deliver a significant improvement in profit performance for the year, largely driven by a reduction in gross margin percentage. Bad debt indicators remained broadly stable in the period, benefiting from the rollout of a behavioural credit scoring system, which now applies to 60% of the customer base.
Never Miss a Retail Update!The group said that the rate of sales growth is likely to moderate as prior-year comparators become tougher.
Trade at Kleeneze remained challenging. Sales in the period were 9.1% below the prior year due to continuing problems with distributor retention. Active distributor numbers are now 10.3% below last year although a number of new initiatives are being rolled out across the distributor base to address the shortfall and to improve retention rates.
Kitbag improved on the prior year’s operating loss, with sales in the half year up 19% on the previous year and a gross margin improvement of around 2%. Findel said that the re-launch of its e-commerce website kitbag.com had not met all of the company’s expectations although it is hoped that an increase in marketing in the final quarter will deliver results.
Total sales at Findel’s education supplies division during its seasonally quiet period fell 1.6% on the prior year, while the healthcare division grew its sales by 20.1%.
Findel said in a statement: “The group remains on the path to recovery and overall we are positive about the progress we are making in a difficult environment. We remain focused on delivering our multi-year turnaround plan.
“The board continues to believe that, as stated at the time of our interim results, the group will deliver improved results in the second half versus the prior year, continuing the trend of improved performance.”
The group added that its financial position is continuing to improve, with a focus on debt reduction while investing in growth.
