Findel to report first interim profit in six years
Home shopping business Findel has said that it expects to report profit before tax in the first half of its financial year for the first time in six years when it announces its interim results next month.
In a pre-close trading statement the group said it had seen a “substantial improvement” in operating profit and margin in the 26 weeks to 26 September. However sales in the period were broadly flat, reflecting a mixed sales performance across the businesses.
Findel revealed that its largest business, Express Gifts, experienced a strong first half with sales 6% ahead of the prior year.
The group’s Kleeneze business continued to underperform as sales dropped 24% on the same period in the previous year although the high variability of costs mitigated the impact on profits. Findel said a number of new options are being trialled to improve performance.
Never Miss a Retail Update!Findel’s education business saw its sales fall by 5% year-on-year in the period although the decline was arrested in September.
Meanwhile, Kitbag’s performance continued to improve as sales increased by 7% year-on-year with first half losses significantly reduced. Findel said the better performance was largely driven by renegotiated contracts. The group said it is now commencing a full strategic review of the options for Kitbag, which could include further investment or a potential sale of the business.
Looking ahead Findel said: “The group continues to make substantial progress, driven in particular by the strength of Express Gifts. Overall, though mindful of the important Christmas trading period ahead and the specific market challenges currently in front of our education business, we maintain our expectations for overall group performance and margin targets.”
