Savings and sales gain for Findel

A SMALL but significant rise in sales together with efficiency savings have boosted home shopping and educational supplies firm Findel.

The Burley-in-Wharfedale-based group said that sales from continuing businesses including the Webb Group were 3% ahead of last year for the 39 weeks ended January 1.

Sales in its home shopping division were 10% ahead of last year with like-for-like sales in line with the same period 2008.

Findel said that product sales in its credit business were up 2% with continued strong demand for its expanded clothing offer throughout the peak season.

However, financial services revenues fell 10% behind the prior year reflecting the continued operation of tighter credit requirements.

In Kleeneze, Findel’s network marketing business, sales were marginally below the same period last year.

Sales in Kitbag remained strong at 35% ahead of last year but trading conditions in Confetti and I Want One Of Those.com remain challenging.

The overall increase in sales for these three brands was 16% compared to the same period last year.

Meanwhile, Findel’s education supplies division fell 12% below the same period last year. The firm said that whole reductions in export and project sales accounted for some of the shortfall, sector conditions remain challenging.

Difficulties were exacerbated in December as a result of the bad weather, which saw more than 8,000 schools closed across the UK.

Findel said it had put several key sales initiatives in place and was continuing to streamline the operations of the division and actions already taken had achieved more than half of the £6m two-year target.

Its group-wide debt reduction strategy has achieved £15m in annualised savings with a further £10m having been identified.

“These savings will be the cornerstone of the group’s ability to generate improved results in the future,” Findel continued in a statement.

“In addition, the board remains committed to restoring sales growth to its core operations. The success of the credit division’s expansion into the UK mail order clothing market and initiatives launched in the education supplies division gives the board encouragement in this regard.”