22nd May 2009 07:00
PRESS ANNOUNCEMENT
FINDEL PLC ("FINDEL" OR "THE GROUP")
UPDATE ON FUNDING ARRANGEMENTS AND CURRENT TRADING
The Board of Findel, one of the UK's Leading Home Shopping and Educational Supplies businesses, is today providing an outline of plans for its future funding arrangements and an update on current trading.
In the light of the issues arising in the wider economy, the Board recognised some time ago the desirability of putting certain of its debt facilities onto a longer term and committed basis and, accordingly, has been holding discussions with its lenders. As these discussions have progressed, it has become apparent to the Board that revisions to the terms of the Group's revolving credit facilities will be required by the lenders. Additionally, the Board has decided to examine the possibility of an equity issue alongside changes to its proposed revised debt facilities. Whilst no final decision has been taken with regard to an equity issue at the current time, this proposal has received initial support from the Group's largest shareholder and also from its Chairman. The Group is being advised in relation to this by Hawkpoint Partners and J.P. Morgan Cazenove.
The underlying financial performance of Findel for the financial year to 3 April 2009 was at the lower end of expectations. Sales in the Home Shopping division from continuing operations were 4 per cent lower than the prior year reflecting not only the tough consumer environment but also our planned scaling back of recruitment in our Home Shopping credit business. Sales in the Education division from continuing operations reduced by 4 per cent due to the lower than expected level of spend in March as concerns grew over public sector funding. The Healthcare division demonstrated a strong performance throughout the year with double digit sales growth. Since the financial year end, the Group's performance has remained broadly in line with the trends seen in the prior financial year, and bad debt rates in the credit business remain tightly managed and in line with our expectations.
The Group remains focused on its previously announced cash generation and debt reduction programme and continues to review the Group's operating structure, including the potential disposal of certain non-core assets.
In view of the above it is envisaged that there will be some delay in the announcement of the Group's audited results for the financial period ended 3 April 2009. A further announcement will be made in due course.
Enquiries:-
Findel PLC T: +44 (0)1943 864686
Keith Chapman, Chairman
Patrick Jolly, Chief Executive
Financial Dynamics T: +44 (0)20 7831 3113
Jonathon Brill
Billy Clegg
Caroline Stewart
Hawkpoint Partners T: +44 (0)20 7665 4500
Paul Baines
Alastair Rogers
J.P. Morgan Cazenove T: +44 (0)20 7588 2828
Luke Bordewich
Shona Graham
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