Findel warns on profit
Home shopping specialist Findel has said its full-year profit before exceptional items will be lower than previously guided at between £2 million and £3 million.
In a trading update covering the 17 weeks to 22 January, Findel announced that group sales increased by 0.5% with product sales for Express Gifts up 0.8% in the same period and up 1.3% in the financial year as a whole.
Findel said the overall level of sales growth from Express Gifts since the half-year was 2%, which was marginally lower than the 2.7% growth seen during the first half of the year.
The company said: “Demand at Express Gifts has seen an encouraging recovery with orders placed since the half year 3.4% ahead of the prior year compared with 2.6% growth in the first half. Orders placed in December were particularly strong at around 10% ahead of the previous year.
“However, a cautious approach to stock management for our newer ranges led to a lack of availability in December which prevented this healthy demand being converted into sales. Experience of demand for these ranges will allow us to improve demand forecasting as we invest in growing the customer base and broadening the clothing offer next year.”
Sales for Findel Education have continued to show a reducing rate of decline since the half-year. Financial services revenues increased by 6.4% since the half year and by 6.7% for the year as a whole, with bad debt rates continuing to improve.