LONDON (Alliance News) - Findel PLC, the UK home shopping and education business, said Wednesday that it has continued to trade strongly since the start of the second half of the year, with total sales since the first-half 3.8% ahead of the prior year.
The group said that it remains on track to deliver full-year results in line with market expectations, and achieve its medium-term targets.
In the financial year-to-date, Findel said that group sales are 4.6% ahead of the prior year, with a continued strong performance from its education division, and its direct mail-order business and largest segment Express Gifts.
"The continued improvements in performance from our two largest businesses, Express Gifts and Education Supplies, provide a strong underpinning of the group's ongoing turnaround," the company said in a statement.
It said Express Gifts recorded strong sales growth over the Christmas period, and since the beginning of the second-half, sales are up 6.9% on last year, with a significant improvement in product gross margins. It said growth was driven by improved retention and increased spend from existing customers and new customers wins. There has been an overall growth in the active customer number base of 8.3% at December 2013, Findel said.
Within Findel's Educations Supplies division, sales have grown 3.4% since the end of the first-half, although it said its Kitbag sports retail business underperformed.
"Although Kitbag is underperforming against our expectations, work continues on the turnaround programme and restructuring of unprofitable physical retail operations. Sales since the half-year were down 4.3% versus last year compared to the 11% decline reported at the end of November. There remains a strong pipeline, with the recent launch of online sales in Europe for the NHL," the company said commenting on the division.
Within Kleeneze, sales since the half year have declined by 5%, it said, adding that work continues on broadening the offer and incentives for distributors, to improve distributor retention and recruitment.
It said that the financial position of the group continues to improve, having recently increased its the securitisation facility for its Express Gifts business, to GBP130 million, up from GBP105 million, to support the ongoing growth of the division.
Findel shares were trading 6.1% lower Wednesday morning at 291.00 pence per share.
By Rowena Harris-Doughty; rowenaharrisdoughty@alliancenews.com; @rharrisdoughty
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