Findel increases bad debt provision by £5m
HOME shopping and educational supplies business Findel today increased its division for bad debts in its home shopping division by £5m.
Just two weeks after it said in a trading update that it expects to achieve record sales of £640m in the year to March 31, the Burley-in-Wharfedale group said that due to the “deteriorating economic climate” it had further reviewed its debt book.
That has seen it add £5m to its provision for bad debts and it said the move would see pre-tax profits for the year to the end of March come in below previous expectations but “marginally ahead of last year”.
Findel, run by chief executive Patrick Jolly and which is due to report its annual results on May 15, added in a statement: “The board believes that the group remains well positioned to make further progress in the new financial year.”
On April 2 in a trading update for the year to March 31 the group said all divisions had contributed to the 17% year-on-year growth.
Findel said sales in its home shopping division were 23% ahead of the previous year, with internet sales accounting for 55% of sales in the division.
The home shopping division, which includes brands such as Letterbox, Cotswold and Confetti, has seen its customer base increase to more than £2.5m.
Sales in its credit business are around 6% higher than 2006/07.
Despite a flat market, Findel said its educational supplies business had seen 6% sales growth compared to the previous year.
Findel said sales were 15% up in its healthcare divison. The group said this was a notable achievement, given the Government's ongoing review of the way in which hospital discharge services are to be provided.
Findel reported record sales and profits during the first half of its 2007 financial year thanks to growing internet sales, including contracts to provide online stores to Formula 1 and the English Cricket Board.
