Findel hit by order delays

HOME shopping business Findel has warned investors that project delays could see contracts worth more than £3m not awarded until the next financial year and other factors could hit the company’s figures by a further £4m.

The warning came as the company goes through a “full potential review” of its shopping, educational and healthcare businesses.

In the North West Findel owns Kitbag, the sportswear retailer based in Middleton, while its troubled education business – which produces mail order catalogues for schools –  is in based in Hyde.

In a statement, the board said it had decided to take “a more prudent approach” to items including expectations of profits of more than £3m from a major international contract and several smaller deals in the education division.

It said: “These projects have experienced delays and, although they may still be awarded in the current financial year, the board believes it is prudent to assume that these contracts, if won, will most likely fall into the next financial year.

“In addition, the board has decided to adopt a more prudent approach to certain forecast non-trading items, including property gains, pensions and foreign exchange. The aggregate net impact of these changes reduces the expected outturn for the year by an additional £4m.”

The Yorkshire company said despite these changes the group’s interim results are expected to show continuing profit in the first half ahead of the same period last year.

Earlier this year, Findel was forced to restate its 2009 results after uncovering accounting problems in its education division which reduced pre-tax profits by £6.4m.