1st Oct 2013 09:36
LONDON (Alliance News) - Findel PLC Tuesday reported an increase in its first-half operating profit, boosted by group sales for the first half of the year that were 5.2% ahead of last year.
In a post-close trading statement, the UK home shopping and education business said that it has made excellent progress in the first half of the year and is well positioned ahead of its Christmas peak trading period.
"Looking ahead, we see further potential in all group companies, and our strong performance in the first half of this year leads us to reiterate our ambition to enter a 7-9% range for group operating margin in the financial year commencing April 2014," said Chief Executive Officer Roger Siddle in a statement.
Fiden said that group sales, excluding its Far Eastern sourcing operation, were up 6.2%.
It said that it has seen a strong sales performance from its direct mail-order business and largest segment, Express Gifts, with sales 0.8% ahead of the prior year.
The group said that sales from its household beauty and health products marketing company Kleeneze, continue to fall, with sales for the period down 3.4% on the prior year. It said that the recent sales deterioration is largely due a change in catalogue timing, with a later launch of the Christmas catalogues this year.
Findel said that sales from its sports leisurewear and football kits retailer, Kitbag, were down 6.9% in the first half, resulting in wider first-half losses than last year. It said sales were down due to the absence of a major summer football championship.
The group said that it has implemented a number of initiatives in the first half of the year to improve international sales, and it expects to reap the benefit from them in the second half of the year. It said that it also recently launched online retail operations for German sports club Borussia Dortmund.
Sales from Findel's education supplies business have improved, it said, with first-half sales 8.2% ahead of last year. It said that its UK brands achieved strong sales growth across the board, totalling 4.5%, together with a very strong recovery in its international business with sales 21% ahead of the prior year.
Findel said that total bank debt for the group is expected to be in the region of GBP237 million, GBP15 million lower than last year, helped by the net proceeds from the sale of its healthcare division earlier in the year, and tight control over inventory levels.
The company is expected to release its interim results on November 27.
Findel shares were down 5.3% Tuesday morning, trading at 234.50 pence per share.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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