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MENU SIGN IN SIGN IN SUBSCRIBE YOU ARE HERE:ONLINE RETAIL Profile: Findel's new chief executive Phil Maudsley 10 APRIL, 2017 BY GEMMA GOLDFINGLE Click here! COMMENT Retail Week finds out more about Findel chief executive Phil Maudsley and whether he can calm disruptive shareholder Mike Ashley. When Retail Week last spoke to Phil Maudsley in 2014 he was hard at work turning around Findel’s retail arm Express Gifts and lamenting the fact he hadn’t been able to partake in one of his passions for some time – horse riding. With the turnaround on track, has Maudsley been back in the saddle? “If I got on a horse now I think it would keel under me,” laughs the loud and proud Yorkshireman. It should come as no surprise that Maudsley was appointed as chief executive of home shopping group Findel last week. A self-confessed “out-and-out trader”, Maudsley has been at Findel for the past 30 years and has already held the chief executive’s seat there once before. Click here! Maudsley took the top job in 2009 during Findel’s darkest time. The company became embroiled in a scandal when a fraud involving international contracts in its education business was discovered. He helped navigate those tricky waters and steadied the ship before handing over to former boss Roger Siddle and returning to the helm of Express Gifts. Maudsley is quick to point out that things are very different this time around. “We’re in a lot stronger place this time. There’s some remarkable momentum behind us.” Clothing boosts business That momentum has been driven by Maudsley’s impressive turnaround of Express Gifts, which runs mail order and web retailers Studio and Ace. In the past five years, sales have jumped by 35% and operating profit has soared 69%. Maudsley puts this success down to broadening the former gift specialist’s offer, particularly in clothing. Apparel now accounts for 28% of Express Gift’s total sales, compared to 12% in 2012. “You only buy one Christmas tree a year but you’re going to come back more to buy clothes,” he says. But operating at the value end of the clothing market – Maudsley says it uses Primark as a benchmark on price – has its challenges, particularly given the devaluation of sterling following the UK’s decision to leave the EU. In fact, Findel revealed last week that it would come in “slightly below” profit expectations for the year as its retail margin was dampened due to it buying products in US dollars. However, Maudsley is a man with a plan and that plan involves moving sourcing further afield, boosting sales per SKU, and upping its prices. Digital transformation Maudsley has seen much change in his 30 years at Findel but he admits that change has come thick and fast of late. “It’s off the scale,” he says. The majority of

https://www.retail-week.com/topics/technology/online-retail/profile-findels-new-chief-executive-phil-maudsley/7020035.article

One more small point that makes me think that Findel Education may be sold is that the main company head office has quietly been moved to the Express Gifts office in Accrington, allegedly as a cost saving measure.

But I wonder whether the recent board changes were a shareholder forced situation, after all, where did Mr Maudsley receive his support from ? If this is the case then I think we should expect to hear confirmation that a supply contract has been agreed with Sports Direct. I also think that this could trigger the sale of Findel Education. As I say though, just a theory.

Pleasing end to the day bolstered by a positive news item from Motley Fool - https://uk.finance.yahoo.com/news/2-struggling-value-stocks-d-111217298.html;_ylc=X1MDMTE5Nzc4NDE4NQRfZXgDMQRfeXJpZANibnVxNTVkY2VmbzlyBGcDZFhWcFpEeHVjejR4WmpGa09EWmpOQzFrTW1FMkxUTTJZVE10T1RRMllpMDJZbU00TVRVNVpXSm1aREE4Wm1sbGJHUStabVJzTG13PQRsYW5nA2VuLUdCBG9yaWdfbGFuZwNlbi1HQgRvcmlnX3JlZ2lvbgNHQgRwb3MDMARyZWdpb24DR0IEc3ltYm9sA0ZETC5M?.tsrc=applewf

Like you my finger hovers over the sell all button. Cordial relationships are critical to moving Findel forward. It must be assumed that the relationship between the board under Messrs Sugden and Kowalski and Sports Direct had irreparably broken down thereby damaging the share price. I was hoping that Mr Burke might take a more open friendly position with the larger shareholders but his presence as chairman has clearly had no effect at all. The question now is how does Sports Direct, Toscafund and Schroders view Mr Maudsley ? Friend or foe ? If these key individuals could resolve their differences it would bring renewed optimism and with it share price growth. I am staying in a little longer to see how this new board performs.

The indecision of this board beggars belief. A long while back I stated that Mr Maudsley had both the cv and the experience to take the role as chief executive. Why has it taken fifteen months for the board to arrive at the same conclusion ? It was becoming clear that Mr Burke had merely lent his name to the role as chairman as his name has not so far appeared at the foot of any RNS's. Delighted to see the back of Mr Kowalski, someone has to take respondibility for the mis-selling debacle. Again, I called for Mr Kowalski to step down a good while ago. Despite not living up to expectation for this financial year, I think that with these board changes and the hopeful conclusion to the flawed financial products issue, we can now look forward with some renewed optimism.

Don't blame you Ejackson, this lot are trying the patience of a saint. The interesting contrast to this situation can be seen over at Speedy Hire, another Toscafund and Schroders joint investment. The year end for this company was the same as us, 31st March but they chose to issue a pre closed period trading statement which resulted in some further director buying, including Mr Shearer who made his second purchase in as many months. This didn't trigger much movement in their price but it will be interesting to watch progress during the coming days and weeks. Another point I find irritating with our business is the length of time it takes our board to report final year results. Speedy Hire are releasing theirs on the 16th May. We will be lucky to see our final results until mid June. Why so long ? One final point. Is it my imagination or is there a dearth of profitable dividend paying companies of all sizes across the whole market with a P/E ratio of less than 10 ?

Make no mistake, the culprits responsible for this debacle are Messrs Kowalski, Maudsley and Sugden. Mr Burke is exonerated for now. This problem has been growing right under the noses of these buffoons for years and they have failed their shareholders in not dealing with it adequately much sooner. All three have held office since 2010 or before and all three failed to spot the problem and deal with it soon enough. Just another example of incompetent elderly fat cat bean counters pretending to be retailers. None of these people should be in public office, unfortunately two of them still are. I was hoping for around £15m pre tax post exceptional costs profit, I think we will be lucky to see any profit at all now given this new information. My hope now is that the final quarter of our year has performed above expectation to help offset some of these additional costs. Finally, I find the timing of this release very puzzling, two days before year end. Why not wait and include this information in the trading update next week ?

Don't forget Ejackson, this financial year is a fifty three week year ending on the 31st March. Historically Findel have issued post closed period trading updates so I am expecting our year end trading statement sometime next week, unless of course the extremely effusive Mr Burke decides to break with tradition and issue a pre closed period trading statement.

I'm sure you have your reasons 1GW_ but I would question your timing. Our year end is the 31st March, there is every reason to believe that we are on the brink of declaring a genuine pre tax post exceptional items profit for the first time in years. We could be very close to a significant rise in share price. I value the input of both you 1GW_ and Ejackson. Your decision to sell unnerves me somewhat. Like Ejackson however, I could easily turn bearish should the company not report the post close trading statement that I am hoping and expecting. Thanks for releasing me from my vow of silence Ejackson. At the moment I am feeling positive, we have no reason not to. I expect an RNS in the first week of April. That will be a defining moment, I could be following you both out the door if there is the slightest hint of negative sentiment. Good luck 1GW_ in your future investments.

One month ? Not sure I can resist for that long but I'm willing to give it a go if it means that our share price moves up. On this basis I wish you a very happy easter ! Maybe I should have given up posting opinion for lent !!

Couldn't agree more Ejackson. Mr Ashley reminds me of a lottery winning bus driver in the left seat of a 747. Hasn't got a clue but will push all the buttons and pull all the levers !!

I wish I had kept my thoughts to myself during my post of the 15th February. This diminution in value on very low volume is both very painful and undermines my belief that we are through the worst. One would hope that the market makers in the absence of any news are marking the price down purely on a speculative basis rather than on negative news whispers. If this continues until the end of the month when we expect a post close trading statement we could be back under £1.80.

I noticed that Morningstar.com, the financial website that our own website refers you to in the share price section (Hemscott Group Ltd) is quoting a P/E ratio for us of 9.30 yesterday.

Whilst reading our half year report again today I noticed that we have set aside £17.7m to cover the cost of repaying the mis selling of rogue financial products. The FCA however have recently confirmed that they have accepted a figure of £12.5m to cover this repayment. Does this mean our pre tax post exceptional items profit will be £5.2m higher than we previously expected ?

Very pleased to note the company responding immediately with its own RNS to counteract any negative sentiment. Will this lead to our price strengthening again ?

Reading the Roll Royce chief executives report yesterday reminded me so much of style of writing of our previous incumbent. Lots of promise for the future but a fundamental failure to live up to market expectations. Meanwhile back at Findel and without wishing to tempt renewed price weakness I have been pleased at our new found resilience. Let's hope there is further improvement in the short term.

Findel Education does operate on a tight margin which was 3.4% on revenue of £94.4m for the financial year 2015/16. This margin should improve a little this year and more noticeably next year with the benefit of the warehouse consolidation. It is difficult to say how the emergence of a larger competitor in the sector will affect our margin. It could be said that the newly formed larger business will help us to improve our margin by bullishly charging the customer higher prices knowing that there are less competitors to go to to seek alternative supplies from. Only time will tell. I am still in favour of divestment of Educstion though.

Sorry, I stand corrected, I was reading old information for N Brown, its current P/E ratio is quoted as 11.573.