17th Feb 2009 07:00
17th February 2009
Findel plc ('the Group')
Interim Management Statement and Trading Update
The Board of Findel plc, one of the country's leading Home Shopping and Educational Supplies businesses, today releases an Interim Management Statement.
Group sales for the 44 week period ended 6th January 2009 were 3% below the same period last year. The Board continues to believe this to be a satisfactory performance in the current market.
Sales in the Home Shopping division remained 6% lower than the same period last year reflecting not only the tough consumer environment but also our planned scaling back of recruitment in our Home Shopping credit business. Bad debt rates in the credit business are being tightly managed and remain in line with expectations. Within our cash with order brands, we have seen a continued strong sales performance from Kitbag. However trading conditions continue to be very difficult for The Cotswold Company and Letterbox. Given the economic outlook and the strategic priorities of the Group, the ongoing viability of these two brands is being reviewed.
Whilst sales in our Educational Supplies division were level with the same period last year, we have seen some margin dilution through product mix and the clearance of long stock as part of our working capital improvement programme. The division is anticipating a satisfactory finish to the financial year.
In the Healthcare division sales in the first 44 weeks of the year continued their strong performance and were 14% ahead of the same period last year.
Outlook
The economic environment against which the Group is operating continues to be a challenging one. The Group's management is focused on proactively addressing current market conditions and will take decisive action where necessary as we concentrate on our strategic aims of stability, cost control and importantly the generation of cash.
- Ends -
For further information, please contact:
|
Findel plc
|
T: +44 (0) 1943 864686
|
|
Keith Chapman, Chairman
|
|
|
Patrick Jolly, Chief Executive
|
|
|
Chris Hinton, Finance Director
|
|
|
|
|
|
|
|
|
Financial Dynamics
|
T: +44 (0)207 831 3113
|
|
Jonathon Brill
|
|
|
Billy Clegg
|
|
|
Caroline Stewart
|
|
Related Shares:
STU.L