25th Jan 2019 09:14
LONDON (Alliance News) - Online fashion retailer Findel PLC on Friday said full-year adjusted pretax profit will be towards the upper end of current market forecasts due to record-breaking sales and strong margin performance in the weeks leading up to Black Friday back in November.
Shares in the company were trading 5.00% higher at 210.00 pence each in morning trade.
The market range for adjusted pretax profit is between GBP26.0 million and GBP28.0 million for the year to March-end, according to the company.
Findel said the strong trading performance experienced in the first half continued into the third quarter resulting in core online retail division, Studio, delivering 14% revenue growth in the three months to end of December.
Customers were particularly attracted by the product personalisation that Studio offered, with toys and personalised nightwear proving particularly popular during December as Christmas gifts, the company said, adding that margins at the division remained strong throughout the quarter and expectations for full-year margins remain unchanged.
Product margins for Studio division in financial 2019 are expected to rise by 125 to 175 basis points on financial 2018.
Findel said the early weeks of January have shown an encouraging response for Studio, with homewares and garden ranges performing particularly well.
Meanwhile, Findel's Education supplies unit suffered an 8.9% drop in third-quarter revenue, mainly due to 91% decline in now-discontinued retail supplies revenue.
Total group revenue in the period, including the Education business, increased 11% in the third quarter and 6.5% year-to-date.
Findel's net debt at December 31 stood at GBP54 million, down by GBP23 million from December 2017, on the back of stronger trading performance and working capital improvements.
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