Kitbag sale taking longer than expected says Findel
FINDEL, the home shopping and education supplies specialist, has posted flat half year profits as it said talks to sell its sports retail division, Kitbag, are continuing.
The Hyde-based group said Kitbag, which is located in Chadderton near Oldham, had had a “disappointing” trading period with revenues falling 2.1% to £33.3m in the 26 weeks to September 25 and operating losses jumping from £1.5m to £4.2m.
Findel said that while terms for the sale of Kitbag have been agreed with an un-named bidder, the “buyer is taking longer than expected to finalise their funding for the transaction and until this is completed there can be no certainty that a transaction will be agreed.”
The extended sale process has delayed its search for a new chief executive. Findel said: “In the event that Kitbag is sold the board may review the appropriate leadership structure for the more focused group before any appointment is made.”
The company said “substantial and pleasing progress” had been seen in the first half. Profits from its continuing operations (Kitbag is now being treated as a discontinued business) were £3.4m (2014: £3.4m) from sales of £191.4m (2014: £192.2m).
Despite a slowdown in sales at Express Gifts, its hitherto star performer, the group said it is confident for the full year.
Executive chairman David Sugden said: “Overall, we remain well positioned to deliver an increase in profit before tax for the full year in line with expectations.”
Net bank debt at the half-year was down £20.3m on the prior year to £95.6m
