Findel Share News (FDL)

LONDON (Alliance News) - Findel PLC on Friday said full-year profit before exceptional items will be between GBP2.0 million and GBP3.0 million lower than previously guided, as a result of its Express Gifts business.

The UK home shopping and education business said group sales from continuing operations in the 17 weeks to January 22 were up 0.5%, with product sales for Express Gifts up 0.8% in the same period and up 1.3% for the financial year as a whole.

Findel said the overall level of sales growth from Express Gifts since the half-year was 2.0%, coming in "marginally lower" than the 2.7% growth seen during the first half.

"Demand at Express Gifts has seen an encouraging recovery with orders placed since the half year 3.4% ahead of the prior year compared with 2.6% growth in the first half. Orders placed in December were particularly strong at around 10% ahead of the previous year," Findel said.

"However, a cautious approach to stock management for our newer ranges led to a lack of availability in December which prevented this healthy demand being converted into sales. Experience of demand for these ranges will allow us to improve demand forecasting as we invest in growing the customer base and broadening the clothing offer next year," Findel added.

Financial services revenues increased 6.4% since the half year and 6.7% for the year as a whole, with bad debt rates continuing to improve.

The company's education business saw a reduction in the rate of sales decline.

Shares in Findel were down 3.7% at 185.00 pence on Friday morning.

By Samuel Agini; samagini@alliancenews.com; @samuelagini

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