The North West home shopping and education business, Findel, has reported strong progress in the first half of the latest business year with its first interim profits reported in six years.
Findel, which is headquartered in Hyde and has businesses in Chadderton (Kitbag) and Accrington (Express Gifts and Kleeneze), has reported high confidence for it’s end of year report although has admitted there will be challenges in some areas.
In the six months to September 26 2014, Findel made a profit of £1.5 million before exceptional, a substantial improvements when compared with it’s £400,000 loss in H1 2013, with revenue growing from £243.6 million to £244.1 million. Net bank debt also fell from £131.7 million to £115.9 million.
Chief executive Roger Siddle said:
“We are pleased with the progress. We have reduced debt, improved margin, while we are a seasonal business it is a nice milestone to reach to report our first pre-tax profit in six years.”
Roger Siddle also said that the performance of Express Gifts, Findel’s biggest division, had been strong in H1, with Kitbag also making positive progress in loss reduction. However, challenges remain in Findel’s education division where schools’ budget have come under pressures. Kleeneze also had a trying H1 2014.
Concerning Kitbag, Findel has considered sale as part of a strategic review. Roger Siddle said that there have been “several expression of interest” in purchasing the asset, which works with leading football clubs like Barcelona and Real Madrid, as well as F1 teams such as McLaren and retail operations for the Ryder Cup.
Siddle added:
“The strategic review is all about determining whether Kitbag is worth more to someone else than it is to us. We know its potential and if the outcome of the process is that we keep it, we will invest in Kitbag and take it forward – the team has done a great job.”
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Words: Peter Cribley