Findel still confident despite worsening trading environment

STRONG cash reserves and a rise in healthcare division sales have helped Findel deliver another confident message about its performance.

The Burley-in-Wharfedale-based home shopping and educational supplies business said today in a trading update that there had been a 14% rise in sales in its healthcare division for the first six months ended September 30 and that the group’s funding requirements were now past their peak and due to reduce “significantly” over the next three years.

It added that it had secured a £250m revolving credit facility until 2010 and a securitisation facility of £105m until 2011.

Despite a tough trading environment group sales were up 1% on the same period last year although sales in Findel’s home shopping division dropped by 1% as had those in its educational supplies division.

“The board believes that the group has made a good start to the year in difficult economic conditions,” it said.

“Our home shopping division has recognised the likely constraint on consumer spending and is managing expenditure accordingly. Approximately 40% of the group’s annual income is derived from the education and healthcare divisions, which are inherently more defensive in difficult times.”

Findel will announce its interim results on November 27.