Findel ‘encouraged’ by stong first half
FINDEL, the listed home shopping and education supplies company, has said overall like-for-like sales are 6% ahead of last year, with its Express Gifts division continuing to perform well and Education showing a marked improvement.
The board of the Hyde-based business said the “encouraging” performance, outlined in a trading update ahead of its interim results for the half year to the end of September, underpinned its confidence in the group’s ability to deliver full-year results in line with expectations.
Within Express Gifts, like-for-like product sales for the half-year were 12% ahead, reflecting the anticipated slight moderation of the growth rate seen earlier in the period, it said.
Total sales, including an improved financial services yield, were also up 12% and Express Gifts’ customer base has grown by 12% since the start of 2016.
This growth has been driven by a combination of a 9% upturn from the established customer base and a very strong response to its new recruitment campaign – Findel said it is well on the way to achieving its target of recruiting 100,000 new customers for the year.
Bad debt costs are expected to rise this year as a result of refinements to the management of the credit book, lower debt sales than expected, and the increase in product sales.
Findel Education, meanwhile, has seen an improved trading performance in the second quarter, which is the business’ peak period due to the start of the new school year.
Total sales for the division in the first half were down by 5.5% with sales in the second quarter down by 3%.
The group added that whilst pricing conditions remain “extremely competitive” and budgetary pressures persist, it is encouraged particularly by the market share gains being made by its classroom and specialist brands.
Meanwhile, its warehouse consolidation project is expected to be completed by the end of the calendar year.
Findel also said it will soon make an announcement on the search for an independent executive chairman to replace David Sugden, who had intended to step down at the AGM.
The appointment comes after the company blocked a move by Mike Ashley to be appointed chairman, having previously been in early stage discussions over a possible supply deal between its subsidiary Express Gifts and Sport Direct.
Sports Direct bought a stake in Findel last September and has since built its shareholding to around 30%. Last year, Ashley failed in his attempt to put a representative on to Findel’s board to wield influence over a potential business agreement.
