Findel sees losses increase to £76.1m

YORKSHIRE home shopping and educational supplies business Findel has seen its losses before tax increase from £57.4m to £76.1m over the past year as a result of a “challenging  period”.

In the 12 months to April 3, 2010, the Burley-in-Wharfedale-based company has also seen sales from its continuing operations drop by 4% to £547m.

It benchmark operating profit over the past year has also fallen to £36.2m from £48.4m last time.

Findel’s preliminary results nevertheless hail a “creditable” trading performance  – with the exception of its education supplies division – in a difficult economic environment.

Earlier this year the company had to restate its 2009 results, reducing its pre-tax profits by £6.4m following an investigation into accounting entries in its education division, which is based in Tameside in the North West.

But the results state that this has not had an impact on its benchmark profit before tax for the period ended April 2, 2010.

David Sugden, chairman of Findel said: “The past year was undoubtedly a challenging period for the group. 

“Since being appointed chairman, I have instigated a full potential review of all the group’s continuing operations, with the intention to complete this review as quickly as possible so we can return the group to profit growth.

“I am encouraged by the strength of the group’s continuing businesses and we have a portfolio including profitable, cash generative businesses with significant potential for improved performance. 

“As this year progresses, we will implement the actions identified within the full potential review to achieve an improvement in group performance.

“Despite the many distractions and the uncertain economic backdrop, performance in the first quarter of the current year has shown resilience although the key peak trading periods for both our home shopping and education supplies businesses are still to come.

“Higher interest charges will also impact the current financial year.

“At the heart of the group there are a number of good, profitable and cash generative businesses.

“As the year progresses we will be vigorously implementing the performance improvement actions identified by the full potential review and, whilst many of these will take some time to be fully introduced, we believe there are a number of opportunities to enhance business performance across the group.”

Sales in its home shopping division remained at £345.1m (2009: £345m) while sales in its direct selling brand Kleeneze fell from £65.1m to £62m.

But sales in its Kitbag division rose 34% from £36m to £48.3m – which was due to its contract with Everton Football Club.

Sales in its education supplies division fell to £138.4m from £162.3m in 2009.