Home shopping retail group Findel has seen pre-tax profit soar 44.9 per cent to £15.5 million as its turnaround strategy continues to bear fruit, according to results released today.
For the 52 weeks ended March 29th 2013, total group revenue climbed eight per cent to £580.6 million total group operating profit jumped 20 per cent on a year earlier to £25.1 million.
At the year end, net debt was reduced by 8.8 per cent to £120.2 million, though this does not consider the disposal of the company’s healthcare division which was announced in March in a bid to strengthen Findel’s balance sheet by reducing group borrowings and on April 19th 2013, Findel sold its NRS healthcare business to LDC for £24 million.
Findel’s largest business Express Gifts reported a sales rise of 13.4 per cent while operating profit increased 15.9 per cent as the retailer grew its customer base by eight per cent.
Meanwhile, Findel’s Kleeneze operation has seen both sales and profit decline over the year though the group noted that recent senior management changes and a revised profitability plan are set to keep the business moving forward.
Kitbag continued to make a loss during the period though managed “a substantial recovery on the prior year as a result of management actions, leading to strong sales growth together with improvements in gross margin.”
Sales and profits in the initial weeks of the new financial year have seen further growth though the group conceded that this is “a relatively quiet period for trading” across a number of its businesses.
Looking ahead, Findel Chairman David Sugden said: “We are very pleased with the progress we have made this year.
“Current trading remains encouraging and, despite the continuing challenges of the external environment, we continue to be confident about the potential within the Group.
“We will continue to pursue our turnaround plan which is clearly demonstrating the prospects of improved shareholder value.”