Findel turnaround making progress

FINDEL, the home shopping, educational supplies and healthcare services provider says it is making progress on its turnaround plan as it posted a first half operating profit.

The Hyde-based group, which owns brands such as Express Gifts, Kleeneze and sportswear retailer Kitbag, stressed there is “still much work to do to complete the turnaround plan.”

Sales in the six months to September 28 rose 8.1% to £275.1m, while an operating loss before exceptionals of £0.6m was converted to £500,000 profit.

At the bottom line pre-tax losses before exceptional items were down £1m on the year at £4.6m,

Findel, which said this month it had received approaches for its Leicestershire-based healthcare division, employs around 2,000 people in the North West.

Kleeneze and Express Gifts are based in the Accington area, Kitbag at Chadderton near Oldham and the education division and head office at Hyde.

Chief executive Roger Siddle told TheBusinessDesk.com he was “chuffed” with the results and said the operating profit was the first the group had achieved since 2010-11.

He explained: “We are still very second-half weighted due to Christmas being so key to Express Gifts and Kitbag,

“Our focus is on continuing to drive forwards our turnaround plan, to maintain this trend of improving results into the second half and beyond, with the clear aim of delivering improved shareholder returns over the medium term.

“Notwithstanding on-going pressure from reduced consumer spending and cost inflation, we believe we are well placed to continue to deliver on our plans.”   

Group net debt, including a securitisiation facility agreed as part of financing in March 2011, fell slightly to £252.1m from £256.9m in 2011.

Findel said current trading since the period end had continued to be “broadly encouraging” with sales in the eight weeks to November 23 up 7.7% on last year.