Trading In Line With Expectations

30 July 2015

Findel plc (the "Group")

AGM Trading Statement

"TRADING IN LINE WITH EXPECTATIONS"

At the Annual General Meeting to be held at 11.00am today David Sugden, Chairman, will make the following remarks on trading for the 17 week period from 28 March 2015 to 24 July 2015. 

Group Performance

As indicated with the FY15 results announcement on 18 June, the group has made a solid start to the year. Total sales in the first 17 weeks are up by 1.9%. The early weeks of the financial year are relatively quiet periods for Express Gifts and Kitbag, although they form part of the peak "back to school" ordering period for Findel Education. 

The group's largest business, Express Gifts, has seen product sales growth of 7.7% for the year to date although at a slightly lower gross margin rate than in the equivalent weeks of FY15 due to product mix. As in previous years, the majority of this growth has come from existing customers. Credit-related income increased by 6.0% and the quality of the receivables continues to improve.

Findel Education has seen its year to date sales decline by 4.6% in difficult market conditions. This is an improvement on the 9.2% decline seen in the final quarter of last year, although the current period has benefited from favourable year-on-year timing effects on the Sainsbury's Active Kids Scheme. We are continuing to implement a series of actions to turnaround the performance of this business.

Adverse timing differences caused by the later launch of certain clubs' new season replica kits, together with a comparative period that included last year's FIFA World Cup, has led to Kitbag's sales being 5.6% behind the prior year for the first 17 weeks of the current year. Adjusting for these factors would show sales moderately ahead.

Summary

The early weeks of the year have seen overall trading in line with expectations with Express Gifts continuing to provide the majority of both the group's profit and its growth in profitability, with support and improving cash generation coming from Findel Education and Kitbag. 

Enquiries 

Findel plc

David Sugden / Tim Kowalski 0161 303 3465 

Tulchan Communications LLP 

Stephen Malthouse / Will Smith 020 7353 4200

Notes to Editors

The Findel Group contains market leading businesses in the UK home shopping and education supplies markets. It is primarily a retailer and distributor, handling and supplying specialist products manufactured by third parties.

The Group's activities are focused in three main operating segments, together with a small overseas sourcing operation:

· Express Gifts - one of the largest direct mail order businesses in the UK;

· Findel Education - the largest listed independent supplier of resources and equipment (excluding information technology and publishing) to schools in the UK; and

· Kitbag - e-commerce retailer of sports merchandise to leading brand partners.

The range of analyst forecasts as at 29 July 2015 seen by the Group for profit before tax for FY16 is £28.4m-£29.5m (FY15 actual: £26.5m).