Chairman of Findel steps down

FINDEL’S long-standing chairman Keith Chapman is stepping down as a director of the troubled firm.

The company said last week it would have to restate last year’s figures because of possible accounting errors at its North West educational supplies arm.

Findel said Mr Chapman had decided to step down as its chairman and as a director.

The group said the decision followed a review published last July regarding the structure of its board.

David Sugden, who was appointed a non-executive director of Findel last August, has been appointed chairman with immediate effect.

Mr Sugden said: “Keith Chapman has successfully led Findel for many years and the company is extremely grateful for all his efforts. 

“Findel is now one of the leading major groups in home shopping and the distribution of educational and medical supplies.

“Under his leadership Findel also became the largest manufacturer of greeting cards in Europe prior to the demerger and subsequent sale of this business to Hallmark in the late 1990’s.”

Findel discovered a number of accounting entries had not been “properly substantiated” within its Tameside-based education division following changes within the management of that division.

Initial estimates of the impact on the Findel’s results for the year ended April 3, 2009 would be to reduce that year’s pre-tax profits by £5m and benchmark profits by £5m.

Net assets would have to be reduced by £14m as at April 3, 2009. 

Findel said despite the revelations expecting to lead to a restatement of last year’s revenues, costs and profits, it is not expected to have a negative impact on profits for the current financial year which ended on April 2.