Findel sales rise as turnaround continues

published 3 October 2012

Home shopping, educational and healthcare business Findel said its turnaround actions helped it report a 7.9 per cent increase in first half sales, and while spending pressures remain, it is confident of further progress.

Its largest business Express Gifts continued to deliver a strong sales performance with sales during the half year up 18% from the prior year while bad debt rates remained stable.

As it moves towards the key Christmas period, Findel said Express Gifts is well positioned for further growth, although the rate of growth may slow as comparative periods are stronger.

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Meanwhile at Kleeneze, the continuing wet summer conditions hampered its performance with first-half sales down 7.1% from the prior year.

The company, which operates a portfolio of catalogue and online retailers including Kitbag, said its sales rose 11.1% from the previous year, with a significant increase in gross margin. Sales at its Education Supplies business fell 5.2% as its turnaround continues.

Its Healthcare business saw sales rise 13.2% in the first half following new contracts and growth from existing contracts.

Commenting on its performance Findel said: "The group's trading performance during the first-half confirms that our turnaround actions are taking effect with an overall improvement in first-half operating performance over the prior year."

"Whilst the peak sales periods for the group are still to come and on-going pressure on spending causes us to remain cautious, we believe we are well placed to continue to deliver on our turnaround plans."