Findel toasts profit growth
HOME shopping and educational supplies group Findel says it has completed the first phase of its turnaround after doubling profits.
The improvement was down to a strong performance in its two largest divisions, Express Gifts and Findel Education, but homewares seller Kleeneze and online sports retailer Kitbag are still proving to be a challenge.
The group, based in Hyde with operations across the region, saw revenues climb by nearly 5% to £514.7m in the year to March, while pre-tax profits jumped from £11.8m to £22m after stripping out exceptional items – in line with analysts expectations. After including extra costs pre-tax profits were £3.3m, up from £500,000.
Most of the growth came from Express Gifts, which is run from Accrington, and Findel Education where revenues increased by 9.6% and 6.5% respectively. Express Gifts saw a 41% increase in operating profit, before exceptionals, while education recorded a fourfold increase.
The group’s other operations, Kleeneze and Kitbag, have taken longer than expected to improve. Kleeneze’s sales in the year are down 5.5% and Chadderton-based Kitbag increased losses from £1.7m to £4.1m.
Bank debt reduced by £23m during the year to £97m and the group’s core facility was renegotiated to relax some restrictions.
Chief executive Roger Siddle said: “Over the past three years we have turned the group around from its extremely difficult position through a clear focus on a series of ‘self-help’ plans. The strong results we are reporting today represent a year of transition for Findel as we make the move from a turnaround phase to one of continued growth and improvement.
“As we look ahead, there remains significant potential for additional performance improvement to deliver further value for our shareholders.”
