Findel posts first interim profit in six years

FINDEL, the North West home shopping and education business has reported a strong first half of progress underlined by its first interim profit in six years.

The group which has its head office in Hyde, where its education division is based, and also has businesses in Chadderton (Kitbag) and Accrington (Express Gifts and Kleeneze), said it it is confident for the full year, despite challenges in some areas.

In the 26 weeks to September 26 Findel made a profit before exceptionals of £1.5m, compared with a £400,000 loss in H1 2013 as revenue nudged forward from £243.6m to £244.1m. Net bank debt fell from £131.7m to £115.9m.

Chief executive Roger Siddle told TheBusinessDesk: “We are pleased with the progress. We have reduced debt, improved margin, while we are a seasonal business it is a nice milestone to reach to report our first pre-tax profit in six years.”

He said the performance of Express Gifts, its biggest division, had been strong in the first half, while Kitbag has made positive progress in reducing losses. Challenges remain in the education division where schools’ budgets have come under pressure, while Kleeneze had a tough first half.

Regarding Kitbag – Findel could sell as part of a strategic review – Mr Siddle said there had been “several expressions of interest” in the asset, which works with leading football clubs such as Real Madrid and Barcelona as well as F1 teams like McLaren and also runs the retail operations for the Ryder Cup.

“The strategic review is all about determining whether Kitbg is worth more to someone else than it is to us. We know its potential and if the outcome of the process is that we keep it, we will invest in Kitbag and take it forward – the team has done a great job.”