4th Oct 2005 07:00
Findel PLC04 October 2005 For Immediate Release 4th October 2005 Trading Update The Board of Findel plc, the Yorkshire based Home Shopping and EducationalSupplies business, today announces a trading update for the six months ended 30September 2005. Group sales in the first six months of the current year increased by 21%compared with the same period last year; like-for-like sales declined by 1%. In the Home Shopping division, total sales were down by 7% in the first sixmonths of the current financial year reflecting some weakening in the retailmarket and a later timing of this season's catalogue mailing plan. Followingearlier tests which demonstrated a benefit to customer response, it was decidedto personalise the recruitment catalogues this year. This extended the mail outprocess, with the effect that some 27% of the season's mailing plan remained tobe completed at the end of September compared with only 2% at the same time lastyear. The impact of this in the second half of the year, together with thecurrent performance seen in average order value and repeat order activity, leadus to expect an improvement as we move further into the Christmas season. In the Educational Supplies division, total sales in the first six monthsincreased by 56% against the same period last year largely reflecting the twoacquisitions - GLS and Huntleigh National Healthcare - made by the Group whichcontinue to perform well. The cost of funding these acquisitions will impact theGroup's interest charge in the full financial year. School spending remainssubdued, and like for like sales in the period increased by 1%. Therestructuring we announced in May is proceeding well and continues on track forcompletion in accordance with the planned timetable, and we are confident thatit will deliver the cost savings and benefits we identified at that time.Progress has been such that we anticipate a small additional benefit from thisreorganisation in the second half of this financial year. Findel Services performed satisfactorily with a small increase in turnover inthe first half. In Group terms, an improving performance from the Educational Supplies divisionhas been impacted by difficult retail market conditions experienced by the HomeShopping division and higher interest charges. Consequently, the Board believesthat the Group will make further good progress in the full year althoughslightly below its previous expectations. The Group intends to announce its interim results on 1 December 2005. For further information please contact: Keith Chapman Executive Chairman Tel: 01943 864686Tony Johnson Executive Deputy ChairmanDavid Dutton Finance Director This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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