LONDON (Alliance News) - Findel PLC said Friday that it has substantially improved its bottom line performance, despite a decline in group sales in the 15 weeks to July 17, as a result of improved margins and cost savings.
In a statement released ahead of its annual general meeting the UK home shopping and education business said group sales in the 15 week period fell 2.2% on last year. Express Gifts - the company's largest division - saw sales up 6.2% but reports varied sales in its other businesses due to some timing effects and changing trends, leading to the group decline.
In the Express Gifts division, the majority of growth has again come from existing customers, said Findel, which continues to lead to improving bad debt indicators. Margins have been maintained, and thus underlying profits have continued to increase significantly.
Findel noted that its smallest business, Kleeneze, remains "challenged" after being hit by unexpected surges in demand and consequential stock shortages for a range of new or promoted products in a major catalogue, which led to the business failing to meet that demand and damaging distributor confidence and a subsequent 23% fall in sales.
Looking ahead Findel Chairman David Sugden said that although changing trends and timing effects have impacted sales in this relatively quiet period the company anticipates that these will recover. Findel anticipates another year of progress and subsequently retains its profit and margin expectations for the full-year, he said.
Shares in Findel were trading 2.34% lower at 250.50 pence per share Friday morning.
By Alice Attwood; aliceattwood@alliancenews.com; @AliceAtAlliance
Copyright 2014 Alliance News Limited. All Rights Reserved.
