LONDON (Alliance News) - Findel PLC Thursday reported a rise in pretax profit in its recently-ended financial year as sales growth in its Express Gifts business offset a decline in Findel Education and its struggling Kitbag business starts to make a recovery.
The home shopping and education supplies company reported a 28% rise in pretax profit from continuing operations in the year ended March 27 to GBP26.5 million from GBP20.7 million the year before. Revenue from continuing operations grew 2.8% to GBP481.4 million from GBP468.2 million.
It said revenue growth was boosted by a strong performance in its largest business, Express Gifts, which grew sales by 4.7% to GBP302 million, offsetting a 6.5% decline in sales in Findel Education.
Findel also saw a "substantial reduction in losses" in its Kitbag business, which underwent a strategic review at the end of 2014 as it had been struggling, but - following a record Christmas trading period - saw sales growth of 11.7%.
Findel added that sales in the first 11 weeks of the current financial year are up 3.3%, with Express Gifts product sales up 7.1%.
"These results represent another year of progress for Findel, with Express Gifts continuing to drive the group forward. There remains significant opportunity for further growth within this business as we continue to grow the depth and breadth of our ranges and improve the customer experience," Chairman David Sugden said in a statement.
"We are confident that the new management team in place at Findel Education, together with a sharper market focus, will deliver an improvement in performance over the medium term. Kitbag has delivered a substantial recovery and has started to capitalise on the significant growth opportunities open to the business. Overall, we expect to achieve further profit growth, which together with a further reduction in core debt, will deliver improved returns for shareholders," he added.
Findel said it intends to continue using cash generated by the group to reduce debt further rather than to reinstate dividend payments, but said the progress made in recent years means steps can now be taken to pave the way for the reinstatement of a dividend "in due course".
Shares in Findel were trading down 1.0% at 217.50 pence early Thursday.
By Karolina Kaminska; karolinakaminska@alliancenews.com @KarolinaAllNews
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