Hyde-based Findel plc forecasts mixed sales performance

Multi-channel retailer Findel plc has forecast growth in its home shopping business but a sales decline in its education supplies arm for the year ending March 25.

Ahead of releasing its full-year results this summer, the Greater Manchester-based firm is expecting to report 2.2% sales growth in its Express Gifts division for the 12-month period, with that figure rising to around 8.5% for the last nine weeks.

Conversely, the company has forecast a sales decline of 7.8% in its Findel Education business for the year as a whole, and a drop of 7.4% in the last nine weeks.

Despite the sales growth in Express Gifts, Findel is expecting the division’s operating profit for the year to be around £2m lower than last year’s £33.6m figure.

Findel Education, similarly, is expected to deliver an operating profit around £1m lower than the £4.2m achieved in the year ending March 2015.

David Sugden, the executive chairman of Hyde-headquartered Findel, commented: “We are pleased to report an improvement in recent sales performances of our two businesses, trends which position the group well in the coming year.

“With respect to the current year, we expect to report a profit before tax broadly in line with current market expectations.”

He continued: “Our thematic reviews of past product sales are increasingly thorough and, whilst it is disappointing that we continue to find additional areas where customer redress is appropriate, shareholders should take comfort from the fact that we are now identifying inappropriate products for which sales ceased in 2006 and taking active steps to ensure that all issues identified are properly dealt with.”

Concluding, Mr Sugden said the company is confident its strategy for Express Gifts with deliver “significant medium-term profit growth”, adding that he also considers Findel Education to be “well placed to benefit” from the firm’s plans for the division.

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