Sales growth for Findel but Kitbag struggles

FINDEL, the home shopping and education supplies business, has cut losses and seen growth in its core business.

But the group, which has businesses in Accrington, Chadderton and east Manchester, said it had been a “challenging” time for its Kitbag sporting goods business, and sales from its door-to-dor arm Kleeneze continued to decline.

In the six months to the end of September pre-tax losses were reduced to £3m from £11.9m. After stripping out exceptional items the loss narrowed to £400,000 from £6m last year. Sales rose 5% to £243.6m, up from £231.7m.

Express Gifts, the group’s largest business which accounting for around half of revenues, saw sales increase by 10.7%.

Sales rose 8.2% in the education supplies business but revenues slipped by 3.5% at Kleeneze, although the rate of decline slowed. Findel said Kitbag, which sells sporting goods and runs shops for a number of football clubs, had seen less demand from fans, “where on-pitch performance has not matched prior years”. Sales were down 6.3% and the division made a £2.9m loss.

Chief executive Roger Siddle said: “We are very encouraged by these results and the sustained progress against our turnaround plans. In particular, Express Gifts has started the Christmas period strongly and is well positioned to take advantage of the busy period ahead. Education supplies continues to strengthen with a significant improvement over prior year.

“These interim results represent the fourth consecutive half-year period of year-on-year revenue growth since launching our turnaround plan three years ago. Express Gifts and Education, some 75% of Group revenues combined, are seeing improved momentum whilst Kitbag and Kleeneze still need to show progress. We see further potential in all group companies and as a management team we are very focused on ensuring these businesses fulfil their potential in the coming years.”

During the period total net debt reduced by £15.4m to £236.7m.