Sales growth for Findel
HOME shopping, education and healthcare products supplier Findel says its restructuring programme has paid off with stronger sales and a first-half operating profit.
In a trading update for the 26 weeks to September 28 the Hyde-based firm said sales in the first six months grew by nearly 8%.
In the year to March restructuring costs and writedowns caused pre-tax losses to widen to £12.1m from £1.4m. Sales slipped 0.5% to £537.8m.
The largest part of the business, Express Gifts, saw sales increase by 18% thanks to “ongoing improvements in value and product range”. Keener pricing has cut margins, said the firm, but generated a greater gross profit.
Findel’s Kleeneze business, which sells products online and through catalogues, saw sales decline by 7.1% due to a decline in the number of catalogue distributors.
Online sports retailer Kitbag enjoyed an 11.1% sales increase and the education division is also trading ahead of last year, down 5.2%. Healthcare sales rose 13.2% driven by a combination of new contracts and growth from existing business.
“The group’s trading performance during the first-half confirms that our turnaround actions are taking effect with an overall improvement in first-half operating performance over the prior year,” said the business.
“Whilst the peak sales periods for the group are still to come and on-going pressure on spending causes us to remain cautious, we believe we are well placed to continue to deliver on our turnaround plans.”
